[April 15, 2004] Covad and Qwest Sign Commercial Line-Sharing Agreement SAN JOSE, Calif. and DENVER, April 15 /PRNewswire-FirstCall/ -- Covad Communications Group, Inc. (BULLETIN BOARD: COVD) , a leading national broadband service provider of high-speed Internet and network access, and Qwest Communications International Inc. today announced the completion of a three-year commercial line sharing agreement. The agreement enables Covad to continue to offer high-speed digital subscriber line (DSL) services to thousands of small and medium businesses and home users in the seven states within the Qwest region where Covad offers service. This marks the first time a competitive communications carrier and a regional Bell operating company have negotiated commercial terms for access to line sharing since the Federal Communications Commission's (FCC) Triennial Review decision. "Today's agreement demonstrates that the economics of line sharing are beneficial to both parties and that commercial agreements can be negotiated for this service," said Charles Hoffman, president and CEO of Covad. "We commend Qwest for its industry leadership in reaching this agreement and we hope to achieve similar agreements that will allow Covad to continue offering line-shared DSL services throughout the country." Line sharing allows communications providers to deploy DSL on the same line customers use for their voice phone services. Federally mandated access to line sharing as a regulated, unbundled network element is being phased out pursuant to the FCC's Triennial Review Order issued in August 2003. The order included grandfathering provisions covering existing Covad customers. "We're pleased to have formed this new agreement with Covad because it shows Qwest's commitment to working with our wholesale customers and underscores our support of fair, market-based competition," said Teresa Taylor, executive vice president, Qwest wholesale. "We look forward to continuing our long-standing relationship with Covad and hope to replicate this success with other customers." The agreement is for three years beginning in October of 2004 when current federal line-sharing unbundling obligations are phased out. Financial terms were not disclosed, however, Hoffman said: "The pricing of this agreement enables Covad to aggressively compete for line-sharing customers in the Qwest region and is consistent with our business plan." About Covad Covad is a leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, T1, 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 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: http://www.covad.com/. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The foregoing contains "forward-looking statements" which are based on management's current information and beliefs as well as on a number of assumptions concerning future events made by management. 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 Covad's control, that could cause actual results to differ materially from such statements. These risk factors include the impact of increasing competition, pricing pressures, consolidation in the telecommunications industry, uncertainty in telecommunications regulations and changes in technologies, among other risks. For a more detailed description of the risk factors that could cause such a difference, please see Covad's 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. About Qwest Qwest Communications International Inc. is a leading provider of voice, video and data services to more than 25 million customers. The company's 47,000 employees are committed to the "Spirit of Service" and providing world-class services that exceed customers' expectations for quality, value and reliability. For more information, please visit the Qwest Web site at http://www.qwest.com/. Forward Looking Statement Note This release may contain projections and other forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by us with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: the duration and extent of the current economic downturn in our 14-state local service area, including its effect on our customers and suppliers; access line losses due to increased competition, including from technology substitution of our access lines with wireless and cable alternatives; our substantial indebtedness, and our inability to complete any efforts to de-lever our balance sheet through asset sales or other transactions; any adverse outcome of the SEC's current investigation into our accounting policies, practices and procedures and certain transactions; any adverse outcome of the current investigation by the U.S. Attorney's office in Denver into certain matters relating to us; adverse results of increased review and scrutiny by Congress, regulatory authorities, media and others (including any internal analyses) of financial reporting issues and practices or otherwise; rapid and significant changes in technology and markets; any adverse developments in commercial disputes or legal proceedings, including any adverse outcome of current or future legal proceedings related to matters that are the subject of governmental investigations, and, to the extent not covered by insurance, if any, our inability to satisfy any resulting obligations from funds available to us, if any; potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete including the likelihood of certain of our competitors emerging from bankruptcy court protection or otherwise reorganizing their capital structure and competing effectively against us; changes in demand for our products and services; acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels; higher than anticipated employee levels, capital expenditures and operating expenses; adverse changes in the regulatory or legislative environment affecting our business; and changes in the outcome of future events from the assumed outcome included in our significant accounting policies. The information contained in this release is a statement of Qwest's present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest's assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest's assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward-looking statements that Qwest or persons acting on its behalf may issue. This release may include analysts' estimates and other information prepared by third parties for which Qwest assumes no responsibility. Qwest undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. By including any information in this release, Qwest does not necessarily acknowledge that disclosure of such information is required by applicable law or that the information is material. The Qwest logo is a registered trademark of, and CyberCenter is a service mark of, Qwest Communications International Inc. in the U.S. and certain other countries. Inc. Covad Communications Group, Inc.; Qwest Communications International CONTACT: media, Kathleen Greene of Covad Communications,+1-408-952-7434, [email protected], or Claire Maledon of Qwest Communications,+1-303-965-2689, [email protected]; or investors, Susan Crawford ofCovad Communications, +1-408-434-2130, [email protected], orStephanie Comfort of Qwest Investor Relations, +1-800-567-7296, [email protected] Web site: http://www.qwest.com/http://www.covad.com/ [ Back To TMCnet.com's Homepage ]