Covad Introduces Internet Protocol Capabilities - Company Business and Marketing

Cambridge Telcom Report, March 13, 2000

Covad Communications (Nasdaq:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, Thursday introduced a new service called DSL Plus IP (Internet Protocol).

This value-added network service bundles Covad's broadband technology with IP, allowing Covad to offer a more complete bundle of broadband services to existing and new distribution channels.

By integrating Covad's broadband network with IP services, Covad's customers can efficiently and rapidly expand their market reach and reduce operational complexities by outsourcing to Covad the complete network function (DSL Plus IP).

In addition, it allows customers to offer their end-users broadband services at an attractive price and fulfill the associated high-volume demand.

Some of the first customers to utilize the new DSL Plus IP service are leading national Internet Service Providers (ISPs) including Juno Online Services (Nasdaq:JWEB), Prodigy Communications Corporation (Nasdaq:PRGY), and 1stUp.com Corporation.

"This service allows Covad to provide ISP's with a new set of value-added network services," said Rich Wong, vice president of marketing for Covad.

"Now our ISPs have a choice that enables them to focus on providing their unique brand experience to end users, while Covad handles the set-up and management of the network infrastructure. In addition, these value-added network services lay the foundation for delivering broadband services such as video and audio streaming."

The DSL Plus IP service is currently available in San Francisco, Chicago and New York, and will be available throughout Covad's network by August 2000.

"With its commitment to quality and impressive deployment capabilities, Covad is a key ally in our quest to make sponsor-subsidized high speed access widely available to consumers," said Charles Katz, president and CEO of 1stUp.com.

"Just as we have delivered high performance, cost-effective dial-up service to millions of consumers, 1stUp.com soon will offer an easy-to-use, cost-effective high speed offering, made possible through agreements with industry leaders like Covad."

"By supplying IP network management services, Covad is helping Prodigy provide seamless nationwide DSL solutions to its customers," said Prodigy's Chief Technology Officer Bill Kirkner.

Covad is providing DSL Plus IP services by adding gateway routers throughout Covad's regional network to terminate user private virtual circuits (PVCs). The Internet connectivity utilizes national IP network providers such as Level 3 Communications, and seamlessly integrates these services into Covad's existing DSL nationwide network.

The DSL Plus IP transport service elements include PVC termination; end user authentication, authorization and accounting; IP address assignment and management, domain name service and IP routing and connectivity.

"Covad's DSL Plus IP is a great new service that we plan to take full advantage of as we roll out Juno Express, our premium broadband service, nationally later this year," said Wendy Rosenberg, Juno's senior vice president responsible for Juno Express.

Covad Communications is the leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL services through Internet Service Providers, telecommunications carriers, enterprises, PC OEMs and ASPs to small and medium-sized businesses and home users.

Covad services are currently available across the United States in 62 of the top Metropolitan Statistical Areas (MSAs) and will be available in 100 MSAs by the end of 2000. At that time, Covad's network will reach more than 40 percent of all US homes and 45 percent of all US businesses.

Covad Communications and its affiliates, doing business as Covad Communications Company, are wholly owned subsidiaries of Covad Communications Group, Inc. Corporate headquarters is located at 2330 Central Expressway, Santa Clara, CA, 95050. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.