Covadís Line-Powered Voice Service Rolled Out by EarthLink in Seattle, Dallas and San Francisco
EarthLink DSL and Home Phone Service is a VoIP-based consumer alternative powered by Covadís innovative technology and nationwide broadband network
San Jose, Calif. (February 6, 2006) - Covad Communications Group, Inc. (AMEX: DVW), a leading national provider of integrated voice and data communications, today announces the support of EarthLinkís (NASDAQ: ELNK) rollout of line-powered voice, a VoIP-based voice and data bundle for consumers. EarthLink DSL and Home Phone Service is now available in Seattle, Dallas and San Francisco.
ďCovadís line-powered voice is a revolutionary consumer VoIP alternative that works just like the old phone company - only better,Ē said Charles Hoffman, president and CEO of Covad Communications. ďCovad is particularly excited about our partnership with EarthLink, a company that offers tremendous nationwide brand recognition and boasts a well-deserved reputation of trust with consumers.Ē
ďItís simple: this partnership allows consumers to fire their phone company and sign up for the high-quality, low-cost voice and broadband solution that they deserve,Ē said Steve Howe, EarthLinkís vice president of voice services.
Line-powered voice does not require a broadband connection or additional consumer premise equipment. Customers use their existing analog phone equipment and in-house jack. Customers will enjoy high quality service because their calls will be delivered over Covadís managed national network, rather than the public Internet. As with traditional voice service, the line is powered from the central office (CO), so a power failure will not disrupt service. Full e-911 service is also included. EarthLink will be offering this service to consumers as part of a broadband bundle.
Line-powered voice is made possible by next-generation Digital Subscriber Line Access Multiplexers (DSLAMs) that Covad has been market testing in three cities: Seattle, Dallas and San Francisco. This equipment also allows Covad to offer ADSL2+ (which delivers much higher bandwidth than ADSL) in the future. Covadís strategy is to seek out strategic partners to fund the necessary network upgrades for expansion of line-powered voice into additional markets.
Covad is a leading nationwide provider of integrated voice and data communications. The company offers DSL, Voice Over IP, T1, Web hosting, managed security, IP and dial-up, and bundled voice and data services directly through Covadís network and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad broadband services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles San Jose, CA 95134. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
The foregoing contains ďforward-looking statementsĒ which are based on managementís current information and beliefs as well as on a number of assumptions concerning future events made by management. Examples of forward- looking statements include expectations regarding the market for consumer VoIP services, sales of line-powered voice services and new services, such as ADSL2+. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Covadís control that could cause actual results to differ materially from such statements. These risk factors include the ability of Covad to sell and deliver its services efficiently, to effectively compete with other providers of voice and broadband services, and to maintain an efficient cost structure, as well as potential changes in telecommunications regulations, among other risks. For a more detailed description of the risk factors that could cause such a difference, please see Covadís 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. Covad disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of Covad.
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