Covad and SBC Form Marketing Agreement to Deliver Broadband Nationwide - Brief Article

ISP Business, Oct, 2000

Covad Communications and SBC Communications Inc. announced an agreement making Covad an in-region and out-of-region DSL provider for SBC.

SBC also announced plans to invest $150 million to acquire a stake in Covad.

In addition, the companies said that several pending antitrust and regulatory legal issues were settled and terms were established regarding unbundled network element pricing, line sharing, provisioning, operational support system (OSS) development, remote terminal access, and other proceedings.

The commercial agreement includes a guaranteed $600 million in resale revenue to Covad which will be phased in over six years starting October 1, 2000. The agreement also provides incentives for SBC to sell business lines provided by Covad. SBC will begin marketing both symmetric business service DSL and asymmetric consumer service DSL provided by Covad throughout the US. The companies will work together on network, provisioning, and product planning activities needed to support this agreement.