Covad Adds Voice to High-speedData Offer

By Khali Henderson

Posted: 2/2003

Covad Adds Voice to High-speed
Data Offer

By Khali Henderson

COVAD COMMUNICATIONS Co. is adding
voice services to its high-speed Internet access service in select markets. The
services, offered as a bundle called TeleXchange Integrated Services, will be
marketed first to small businesses in the San Francisco Bay Area at rates up to
40 percent less than the ILEC.

The service initially will be
available through the company’s direct sales force, but an affiliate program is
planned for second quarter, says Todd Kiehn, Covad group product manager for
voice services. He says the addition of a telephony product will enable the
company to attract more voice services agents in addition to its growing channel
of VARs and systems integrators.

Covad expects to roll out the
service to 10 to 15 additional markets, including New York City, Los Angeles,
Chicago, Washington, D.C., in 2003.

The TeleXchange integrated service
provides up to 24 full-featured phone lines and a high-speed connection to the
Internet over one DSL connection. It is enabled by an integrated access device (IAD)
placed at the customer premise, which routes voice and data calls over Covad’s
ATM backbone and then hands off data calls to the Internet and voice calls to
Focal Communications Corp. for termination. Focal will provide dial tone and
voice transport for the service in all the markets Covad is planning to serve
next year, Kiehn says.

Phone services include unlimited
local calling, with bundles of long-distance minutes included. TeleXchange also
allows for access to directory and operator services. Key calling features like
caller ID, call waiting and three-way calling are included.

Covad’s expects its customers to
save up to 40 percent each month by switching to Covad from current local and
long- distance phone companies. Industry data and current competitor prices show
a Bay Area small business with four telephone lines could spend as much as $330
each month on phone service, compared with Covad’s $200 price for the four-line
bundle with 1,500 long-distance minutes, not including the required Covad DSL
service. A 384kbps SDSL connection is $179 per month. In addition, customers
must buy the IAD, which costs $599 ($349 after mail-in rebate during a temporary
promotional period).

Kiehn says Covad expects to increase
its average revenue per user by $200.

The bundled package includes the
company’s SDSL offering, TeleSpeed, which offers symmetric service up to
1.5mbps. Kiehn says variations of the bundle will be offered by the middle of
next year in combination with Covad’s TeleSOHO ADSL product and its T1 service.
Pricing for the voice services has not been determined but Covad currently
charges $69.99 for its ADSL services and $699 for a T1.

Services are billed on one monthly
statement, and Covad provides a single number to call for both voice and data
customer support.

Customers will manage TeleXchange
online through Covad’s SMART account manager. Customers will be able to upgrade
and downgrade their Internet access speeds, add and subtract voice lines, modify
feature settings, review invoices and call records, and check troubleshooting
tips.

Covad Communications is adding voice to its Internet access services.
Source: Covad