sbc/att agreement
mike, what is your take on this latest att/sbc news?
thanks
chuck
SBC, AT&T Reach Services Agreements with Covad; Covad Will Extend
Broadband Access to Merged Companies, to Enable Expansion of VoIP
Services Out-of-Region, Promote Vigorous Competition in
Telecommunications Industry
Business Wire - May 05, 2005 14:30
SAN ANTONIO, May 05, 2005 (BUSINESS WIRE) -- SBC Communications Inc.
(NYSE:SBC) and AT&T Corp. (NYSE:T) together have reached a services
agreement under which Covad Communications Group Inc. (OTCBB:COVD)
would extend broadband access to the merged companies, which would
help the combined entity expand Internet protocol (IP) services,
including voice-over-Internet-protocol (VoIP), out-of-region to
consumers and businesses. The deal, effective upon completion of the
SBC and AT&T merger, demonstrates the parties' commitment to
promoting vigorous competition in the telecommunications industry
among product and service providers.
"Consumers will continue to benefit from competition in the
provision of telecommunications services, making them the real
winners here," said Mark Keiffer, senior vice president-business
marketing for SBC. "And agreements such as these will be especially
important in enabling SBC, post-merger, to become a more effective
out-of-region competitor. We look forward to working with Covad not
only in offering services to consumers and businesses outside of our
territory, but in building on the excellent relationship that exists
between AT&T and Covad today to work to bring additional services to
the market, post-merger."
AT&T entered into a long-term commercial agreement with Covad on
Jan. 1, 2002, buying high-speed Internet access services for resale.
SBC entered into an agreement for similar services with Covad on
Nov. 12, 2001. This new commercial agreement, along with the current
contracts, would continue past the completion of the SBC-AT&T
merger.
SBC and Covad also signed a separate commercial agreement that
covers the provision of line-sharing over copper and remote-terminal
facilities in SBC's territory for a four-year period. Line-sharing
allows communications providers like Covad to deploy high-speed DSL
broadband on the same line customers use for their voice phone
services.
"These agreements are very important to Covad as they ensure that we
will continue to be a strong competitor and supplier to AT&T and SBC
now and after their merger," said Charles Hoffman, president and
chief executive officer of Covad. "It allows the provision of a
robust suite of voice and data services over Covad's extensive
network of collocated facilities. In particular, we look forward to
supporting the combined company's out-of-region competitive efforts.
We are pleased about the opportunity to continue working with SBC
and AT&T, and to be a key supplier for the combined entity."
Covad, based in San Jose, Calif., is a leading nationwide provider
of broadband voice and data communications for small and medium
businesses, and a key supplier of high-speed Internet access for
competitive voice and Internet services providers. Founded in 1996,
Covad owns and operates the only nationwide DSL broadband network in
the United States.
"Covad has been a valuable supplier," said Regina Egea, AT&T vice
president of global access strategy and bandwidth product
management. "We're very pleased that we will continue to utilize the
competitively priced and high-quality services and capabilities of
Covad once our merger with SBC is completed and the combined company
competes to deliver IP, including VoIP, services around the nation."
Other specific terms of the agreements are not disclosed. Completion
of the SBC-AT&T merger is expected by the end of this year or early
2006, following all regulatory and governmental approvals.
SBC Communications Inc. is a Fortune 50 company whose subsidiaries,
operating under the SBC brand, provide a full range of voice, data,
networking, e-business, directory publishing and advertising, and
related services to businesses, consumers and other
telecommunications providers. SBC holds a 60 percent ownership
interest in Cingular Wireless, which serves 50.4 million wireless
customers. SBC companies provide high-speed DSL Internet access
lines to more American consumers than any other provider and are
among the nation's leading providers of Internet services. SBC
companies also offer satellite TV service. Additional information
about SBC and SBC products and services is available at www.sbc.com.
For more than 125 years, AT&T (NYSE "T") has been known for
unparalleled quality and reliability in communications. Backed by
the research and development capabilities of AT&T Labs, the company
is a global leader in local, long distance, Internet and transaction-
based voice and data services.
Covad Communications is a leading nationwide provider of broadband
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 Covad's 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.
