Golden Cross
18 years ago
Covad Joins Frost and Sullivan in an Informative eBroadcast to Discuss VoIP Options for Businesses
Thursday June 1, 8:00 am ET
Panel of Analyst and Industry Experts Focuses on Efficiency, Cost Savings and Scalability of Network
SAN JOSE, Calif.--(BUSINESS WIRE)--June 1, 2006--Covad Communications Group, Inc. (AMEX:DVW - News), a leading national provider of integrated voice and data communications, will join together with analysts from Frost and Sullivan for a discussion today on the critical importance of Voice over IP (VoIP) for businesses seeking a competitive advantage. The "eBroadcast" will be available today at http://www.frost.com/prod/servlet/ebroadcast.pag?eventid=67545066 at 2 p.m. EDT/11 a.m. PDT.
ADVERTISEMENT
The session, "Can You Really Afford Not to Use VoIP? Leveraging the Options for Increased Business Value," will be led by Sam Masud, principal analyst, Carrier Infrastructure, ICT Practice, Frost and Sullivan; Prakash Nagpal, director of product strategy, Covad; and John Grady, director of product management, Covad.
"It is important that businesses understand the options available to them," according to Nagpal. "Different types of businesses need different solutions, and VoIP providers must work with each customer to ensure the service they are using gives them the maximum benefit."
"Advancements in VoIP technology have provided new ways to benefit from the convenience and cost savings of a converged service, as well as the advanced features provided by Covad's portfolio of VoIP solutions," adds Grady.
"Getting up to speed on VoIP facilitates businesses for growth," said Sam Masud, principal analyst, Carrier Infrastructure, ICT Practice, Frost and Sullivan. "Covad's experience as a provider of VoIP for businesses allows participants to understand more clearly how different VoIP solutions can work for them."
Covad offers hosted and premise-based VoIP, and is currently the market leader in hosted VoIP. The interactive question and answer session is being held in cooperation with IPTelephony (iPulse), TMCNet.com, VoIP Action and others.
About Covad
Covad 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, broadband wireless, 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.
Contact:
Covad Communications
Michael Doherty, 408-952-7431 (Media)
mdoherty@covad.com
Robert Dougherty, 408-434-2130 (Investor Relations)
investorrelations@covad.com
Golden Cross
18 years ago
DVW/ELNK EarthLink and Covad Announce Additional Markets for Innovative Bundle of Voice Services and High-Speed Internet
PR Newswire - March 16, 2006 7:01 AM (EDT)
EarthLink Investment to Bring Voice and High-Speed Bundle to 8 Additional Cities
SAN JOSE, Calif. and ATLANTA, March 16, 2006 /PRNewswire-FirstCall via COMTEX/ -- Covad (Amex: DVW), a leading national provider of integrated voice and data communications, and EarthLink (Nasdaq: ELNK), the nation's next generation Internet service provider, today announced expanded Voice over IP (VoIP) market availability that will give EarthLink the ability to offer customers low-cost phone services bundled with high-speed Internet access in eight additional cities. EarthLink has agreed to provide Covad with $50 million in debt and equity financing to fund additional network build-outs that will bring Covad's line-powered voice access to Atlanta, Chicago, Los Angeles, Miami, New York City, Philadelphia, San Diego, and Washington, D.C. Already, EarthLink provides DSL and Home Phone Service in Dallas, TX, San Francisco and San Jose, CA, and Seattle, WA.
Made possible through Covad's line-powered voice access, EarthLink DSL and Home Phone Service provides an alternative to the local phone companies. Customers can sign up for a bundle of local and long distance phone service and high-speed Internet access using their existing phones, wiring and computer equipment. Like traditional phone service, EarthLink's voice services will operate during a power outage, support enhanced 911 calling and offer custom calling features.
"With our Internet voice initiatives, we are reshaping our position in the marketplace and redefining what it means to be an ISP," said Garry Betty, EarthLink's president and chief executive officer. "EarthLink DSL and Home Phone Service strengthens our role as a 'Total Communications Company' by delivering one of the industry's most comprehensive portfolios of voice and data products to meet our subscribers' growing communications needs."
"This agreement demonstrates the success of our strategy to target the residential market through strategic partnerships," said Charles Hoffman, president and CEO of Covad Communications. "By strengthening our relationship, Covad and EarthLink are better able to provide a consumer VoIP service that far exceeds the competition in both voice quality and features."
Covad's line-powered voice access marries the "last mile" of traditional telephone copper wiring with EarthLink's advanced VoIP features by taking advantage of the next-generation Digital Subscriber Line Access Multiplexer (DSLAM) technology that will enable Covad to offer higher-speed broadband access (ADSL 2+, G.SHDSL) and new business-class services such as metro Ethernet and bonded T1.
EarthLink customers will enjoy high quality service because their calls will be delivered over Covad's and EarthLink's managed national networks rather than the public Internet. Subscribers will also receive EarthLink's award-winning customer service and Internet tools and services like spamBlocker, VirusBlocker(TM) and Spyware Blocker(TM).
In exchange for EarthLink's new financing for Covad, EarthLink will receive $10 million in common stock and $40 million in convertible debt, due in 2011. Additional details on the investment will be disclosed by Covad and EarthLink in Form 8Ks to be filed with the Securities and Exchange Commission. This investment is subject to customary closing conditions. The closing is expected to occur before March 31, 2006.
About Covad
Covad 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, broadband wireless, 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.
About EarthLink
"EarthLink. We revolve around you(TM)." As the nation's next generation Internet service provider, Atlanta-based EarthLink has earned an award-winning reputation for outstanding customer service and its suite of online products and services. Serving over five million subscribers, EarthLink offers what every user should expect from their Internet experience: high-quality connectivity, minimal online intrusions and customizable features. Whether it's dial-up, high-speed, voice, web hosting, wireless or "EarthLink Extras" like home networking or security, EarthLink connects people to the power and possibilities of the Internet. Learn more about EarthLink by calling (800) EARTHLINK or visiting EarthLink's Web site at www.EarthLink.net.
Covad and EarthLink 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. Examples of forward- looking statements include the expected features, performance and customer acceptance of the line powered voice service. 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 the companies' control that could cause actual results to differ materially from such statements. These risk factors include the ability to deploy line powered voice service in a timely manner, the impact of increasing competition, pricing pressures, consolidation in the telecommunications industry, and 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 the companies' filings with the Securities and Exchange Commission. Covad and EarthLink disclaim 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 the companies.
SOURCE EarthLink
Media: Carla Shaw, +1-404-748-7436, +1-404-849-1140 (mobile),
shawcm@corp.earthlink.net, Investors: Mike Gallentine, +1-404-748-6153,
+1-404-395-5155 (mobile), gallentineml@corp.earthlink.net, both of EarthLink; or
Media: Michael Doherty, +1-408-952-7431, mdoherty@covad.com, or Investors: Robert
Dougherty, +1-408-434-2130, investorrelations@covad.com, both of Covad
Golden Cross
18 years ago
Notice to All Robertson Stephens Customers who Purchased or Received an Allocation of Stocks through an IPO from the Securities Arbitration Law Firm of Klayman & Toskes, P.A. -- CNQR, COSN, DVW, CPTH
Monday March 13, 11:21 am ET
NEW YORK, March 13, 2006 (PRIMEZONE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (``K&T'') (http://www.nasd-law.com), representing numerous aggrieved investors throughout the nation, advises all Robertson Stephens customers who are eligible to participate in the Settlement of the Initial Public Offerings Securities Litigation (In Re Initial Public Offering Securities Litigation, No. 21 MC 92 (SAS)), to explore all of their legal options against Robertson Stephens, one of the non-settling defendant underwriters. According to K&T, investors should strongly consider pursuing an individual securities arbitration claim as a means to recovering their financial losses.
According to the IPO Securities Litigation, various issuers and underwriters caused securities to trade at artificially inflated prices, in connection with the initial public offering of the securities, causing customers to lose billions of dollars. Investors who may have a claim against Robertson Stephens, a non-settling defendant underwriter, include those who suffered net losses as a result of their purchase and/or receipt of the following stocks through Robertson Stephens, during the relevant time periods:
1. Concur Technologies (NasdaqNM:CNQR - News) Dec. 16, 98 - Dec. 6, 00
2. CoSine Communications (Other OTC:COSN.PK - News) Sep. 25, 00 - Dec. 6, 00
3. Covad Communications (AMEX:DVW - News) Jan. 20, 99 - Dec. 6, 00
4. Critical Path, Inc. (OTC BB:CPTH.OB - News) Mar. 29, 99 - Dec. 6, 00
ADVERTISEMENT
Several defendant underwriters, including Robertson Stephens, have not settled with the Class Members of the Initial Public Offering Securities Litigation. Therefore, K&T urges investors who suffered substantial losses to proceed with a securities arbitration claim against Robertson Stephens, rather than waiting for a potential class action settlement. Empirical evidence shows that investors may achieve an overall higher rate of recovery by filing an individual securities arbitration claim.
Accordingly, K&T plans to assist individual investors who purchased and/or received an allocation of shares through an IPO to recover their financial losses from Robertson Stephens, in securities arbitration claims before the National Association of Securities Dealers and the New York Stock Exchange. Additionally, because the IPO Litigation is not the exclusive remedy for injured investors, K&T strongly encourages all eligible IPO Settlement recipients to contact Lawrence L. Klayman, Esquire, at 888-997-9956 to discuss their legal options and/or the possibility of pursuing an individual securities arbitration claim. You may also visit us on the web at http://www.nasd-law.com.
smpathy4dadevil
19 years ago
Covad Communications Group Announces Second Quarter 2005 =1
SAN JOSE, Calif., Jul 27, 2005 (BUSINESS WIRE) -- Covad Communications Group,
Inc. (OTCBB:COVD), a leading national provider of integrated voice and data
communications, today reported revenue for the second quarter of 2005 of $109.7
million, up from the $107.7 million reported for the first quarter of 2005 and
up from $107.3 million reported in the second quarter of 2004.
Covad ended the second quarter of 2005 with approximately 554,400 broadband
lines in service, an increase of 7,000 lines from the first quarter of 2005.
More than one-third of the line growth was from sales of business T1 services.
Covad ended the second quarter of 2005 with 870 VoIP business customers using
approximately 29,900 stations, representing a 28 percent increase in VoIP
station count from March 31, 2005. VoIP stations added in the second quarter of
2005 were more than double the stations added in the first quarter of 2005.
While VoIP station growth doubled quarter over quarter in 2005 revenue does not
reflect similar growth primarily because of the treatment of installation and
equipment charges, which are deferred for revenue recognition purposes when
billed. These amounts billed will be recognized as revenue in subsequent
quarters.
The company reported a net loss of $16.4 million, or $0.06 loss per share, for
the second quarter of 2005 as compared to a net income of $34.4 million, or
$0.11 per share, for the first quarter of 2005 and a net loss of $7.4 million,
or $0.03 loss per share, in the second quarter of 2004.
Loss from operations for the second quarter of 2005 was $25.6 million compared
to $26.6 million for the first quarter of 2005 and $6.7 million in the second
quarter of 2004. The loss from operations in the second quarter of 2005 reflects
the company's continued investment in sales, marketing and implementation of
Covad's Voice over IP (VoIP) service.
Cash, cash equivalents and short-term investment balances, including restricted
cash and investments, decreased by $4.6 million to $131.0 million in the second
quarter of 2005 compared to a balance of $135.6 million at the end of the first
quarter of 2005. Covad's total cash balance as of June 30, 2005 includes
proceeds from the sale of a portion of the Company's ownership in ACCA Networks
Co. LTD (ACCA), a Japanese broadband provider, as well as an EarthLink
Line-Powered Voice Access prepayment.
"Our second quarter results, with continued growth in revenue, adding 7,000
broadband lines and increasing VoIP stations by 28 percent, are a reflection of
our commitment to building a long-term profitable business and being a leader in
voice and data services. Our direct sales force is proving to be a significant
asset as we continue to set the standard for the business-class VoIP market,"
said Charles Hoffman, Covad president and chief executive officer. "The second
quarter also indicates a change in the mix of broadband lines with an increase
in more profitable, business-class lines being added to our network.
Additionally, our new initiatives with both AOL on high-speed Internet services
and with EarthLink on Line-Powered Voice Access that were announced in the
quarter will enable Covad to continue leveraging our nationwide network to
innovate and collaborate with our partners."
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the
second quarter of 2005 was a loss of $8.0 million as compared to a loss of $7.4
million in the first quarter of 2005 and a profit of $12.5 million in the second
quarter of 2004. Refer to the Selected Financial Data, including Note 2, for a
reconciliation of this non-GAAP financial performance measure to the most
directly comparable GAAP measure and other information.
The company's wholesale subscribers contributed $78.1 million of revenue, or 71
percent, while direct subscribers contributed $31.6 million of revenue, or 29
percent. As of June 30, 2005, broadband lines in service were approximately
472,800 wholesale and 81,600 direct lines, as compared to approximately 465,900
wholesale and 81,500 direct lines as of March 31, 2005, and approximately
440,800 wholesale and 73,600 direct lines reported as of June 30, 2004.
For the second quarter of 2005, broadband and VoIP subscription revenue
increased to $93.5 million from the $91.5 million reported in the first quarter
of 2005 and the $87.5 million reported in the second quarter of 2004. Management
uses broadband and VoIP subscription revenue to evaluate the performance of its
business and believes these revenues are a useful measure for investors as they
represent a key indicator of the performance of the company's core business.
Refer to the Selected Financial Data, including Note 3, for additional
information, including a reconciliation of this non-GAAP financial performance
measure to the most directly comparable GAAP measure.
For the second quarter of 2005, gross margin was $33.5 million, or 31 percent of
revenue, as compared to $35.0 million, or 32 percent of revenue, for the first
quarter of 2005 and $44.6 million, or 42 percent of revenue, for the second
quarter of 2004. Selling, general and administrative expenses were $41.5 million
for the second quarter of 2005 as compared to $42.4 million for the first
quarter of 2005 and $31.9 million in the second quarter of 2004.
"Our second quarter results are in line with the guidance we provided and
reflect our continued commitment to invest in VoIP as well as opportunities in
the broadband area," said John Trewin, Covad senior vice president and chief
financial officer. "The year-over-year increase in operating expenses reflects
our conscious decision to invest to become a leader in the VoIP market. Going
forward, we will continue to make strategic investments in our business to
improve our VoIP, sales, marketing and delivery processes which will result in
an improved customer experience and operational efficiencies, such as faster
order processing and more automated billing."
Operating Statistics
-- At the end of the second quarter of 2005, Covad had approximately 324,700
consumer and 229,700 business broadband lines in service representing 59 percent
and 41 percent of total broadband lines, respectively. Covad had 870 VoIP
business customers and approximately 29,900 VoIP stations as of June 30, 2005.
Business customers contributed $81.6 million, or 74 percent, of total revenue.
-- Weighted Average Revenue per User (ARPU) for broadband lines was $55 per
month during the second quarter of 2005, equivalent to $55 per month for the
first quarter of 2005. Covad VoIP ARPU per customer (excluding resellers) was
$1,698 per month during the second quarter of 2005, down from $1,763 per month
for the first quarter of 2005.
-- Net customer disconnections, or churn, for broadband lines averaged
approximately 3.2 percent in the second quarter of 2005, slightly up from 3.1
percent for the first quarter of 2005.
Business Outlook
In the third quarter of 2005, Covad will be focused on equipping central offices
for the EarthLink line-powered voice trial, continuing network augmentations to
support execution of the AOL High Speed offer and other broadband growth, and
continuing investment to maintain leadership in the growing VoIP hosted-PBX
market. The AOL trial has a positive effect on revenues, but negative impact on
EBITDA and cash due to the upfront incremental expenditures to support that
volume. There also is some capital expenditure related to the EarthLink trial so
some cash received from EarthLink last quarter will be spent in the third
quarter. These expenditures are partially offset by the expectation of selling
the balance of Covad's shares in ACCA during the third quarter of 2005.
As a result, Covad expects total revenue for the third quarter of 2005 to be in
the range of $111-116 million. Broadband and VoIP subscription revenue is
expected to be in the range of $95-98 million. Covad expects its net loss to be
in the range of $16-19 million, and EBITDA loss in the range of $12-15 million.
Net change in cash, cash equivalents and short-term investments, including
restricted cash and investments, in the third quarter of 2005 is expected to be
in the range of negative $14-18 million.
Covad also announced today that it has been accepted for listing on the American
Stock Exchange (Amex) under the symbol "DVW" for data, voice and wireless. Covad
shares will begin trading on Amex on July 28, 2005. Covad was previously traded
on the OTCBB.
Conference Call Information
Covad will conduct a conference call to discuss these financial results on
Wednesday, July 27, 2005 at 5:00 p.m. Eastern Time (ET)/ 2:00 p.m. Pacific Time
(PT). The conference call will be webcast over the Internet. To listen to the
call, visit the Event Calendar section on the Covad web site at
http://www.covad.com/companyinfo/investorrelations. Investors and press may also
listen by telephone to the call by dialing 800-510-0178 and reference pass code
80786596. Participants are advised to call in 5 minutes prior to the start time.
The conference call will be recorded and available for replay listening until
11:59 p.m. EST on August 3, 2005 by dialing 888-286-8010 and reference pass code
59801621. The webcast will be available through our website until July 26, 2006.
About Covad
Covad 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.
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. Examples of
forward-looking statements include the company's expected revenue, Broadband and
VoIP subscription revenue, broadband subscriber line growth, net loss, EBITDA
loss, change in cash, cash equivalents and short term investments, including
restricted cash and investments. 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 our ability to rapidly expand
and deploy new services, the impact of increasing competition, pricing
pressures, consolidation in the telecommunications industry, and 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, 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.
COVAD COMMUNICATIONS GROUP, INC.
SELECTED FINANCIAL DATA (unaudited)
(in thousands)
Selected Condensed Balance Sheet Data As of As of As of
Jun 30, Mar 31, Dec 31,
2005 2005 2004
---------- ---------- ----------
Cash, cash equivalents, and short-term
investments $128,444 $133,018 $150,996
Restricted cash and cash equivalents 2,533 2,533 2,533
Short term investments in equity
securities 14,288 27,671 -
Accounts receivable, net 29,401 27,862 30,041
All other current assets 16,012 14,990 12,211
Property and equipment, net 71,494 71,444 78,707
Collocation fees and other intangible
assets, net 26,843 29,452 34,561
Goodwill 36,626 36,626 36,626
Deferred costs of service activation 28,198 29,128 30,152
Deferred debt issuance costs 3,727 3,979 4,231
All other long-term assets 4,280 4,710 5,167
---------- ---------- ----------
Total assets $361,846 $381,413 $385,225
========== ========== ==========
Total current liabilities $116,176 $109,825 $116,717
Long-term debt 125,000 125,000 125,000
Collateralized customer deposit 40,152 42,237 44,444
Deferred gain resulting from
deconsolidation of subsidiary - - 53,963
Unearned revenues 48,032 49,728 51,518
Other long-term liabilities 6,773 2,108 2,218
Total stockholders' equity (deficit) 25,713 52,515 (8,635)
---------- ---------- ----------
Total liabilities and stockholders'
equity (deficit) $361,846 $381,413 $385,225
========== ========== ==========
COVAD COMMUNICATIONS GROUP, INC.
SELECTED FINANCIAL DATA (unaudited)
(in thousands, except per share amounts)
Consolidated
Condensed Statements
of Operations Data Three Months Ended Six Months Ended
----------------------------- -------------------
Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
2005 2005 2004 2005 2004
rrufff
19 years ago
COVD 1.34 + .11 Beaten down DSL provider being looked at by AOL to stop the bleeding as they try to keep customers who drop dial-up. COVD also offers VOIP so more may be coming.
http://www.washingtonpost.com/wp-
dyn/content/article/2005/06/01/AR2005060101918.html
AOL Aims to Get Up to Speed With DSL
By David A. Vise
Washington Post Staff Writer
Thursday, June 2, 2005; Page D05
America Online Inc. yesterday began offering high-speed Internet
access with AOL e-mail and content in the Washington area and
Chicago, a move that company officials hope will stem the loss of
dial-up users as the service is rolled out nationally later this year.
The Dulles-based firm has lost more than 5 million subscribers to
faster and cheaper Internet services in recent years. The new $29.95
per month service, dubbed AOL High Speed, gives the company something
fresh to offer fleeing dial-up users. AOL officials said they plan a
series of cable television ads and online marketing to encourage the
firm's dial-up subscribers, who pay $23.90 per month, to switch to
AOL High Speed.
Dulles-based AOL's outdated dial-up service has lost millions of
customers. (By Joe Raedle -- Getty Images)
America Online and Time Warner
America Online Inc. is trying to find ways to keep customers coming
back to its Internet community while parent company Time Warner Inc.
seeks ways to expand its Internet empire.
"This makes a lot of sense," said Charlene Li, an analyst with
Forrester Research. "If you have any desire to stay with AOL, you are
going to look at this deal very seriously. It sounds smart."
Despite losing about 2.3 million subscribers in the past year alone,
AOL, a division of Time Warner Inc., remains the nation's biggest
Internet service with 21.7 million subscribers. The company's ad
revenue has begun picking up again after a few years of decline.
The new high-speed product is the first time AOL has offered a
simple, competitively priced way for its subscribers to get faster
online access and keep AOL services and content, too.
In the Washington area, AOL High Speed is priced in the same range as
standard high-speed Internet services sold by Comcast Corp. and
Verizon Communications Inc., which dominate the market. But in
Chicago and other cities yesterday, rival service provider SBC
Communications Inc. began aggressively cutting the price of its Yahoo
high-speed offering to just $14.95 a month, bringing prices for fast
Internet connections below the cost of AOL dial-up for the first time.
Both the AOL and SBC high-speed offerings operate over the same lines
used by home telephone service. Cable television companies typically
charge more for their services, which they say are even faster.
The five-week test in Washington and Chicago by AOL reflects a
fundamental shift in the online business environment and demonstrates
how the company is trying to adapt. Several years ago, AOL made its
name by offering a one-size-fits-all dial-up service. But the world
changed, and computer users left for cheaper dial-up or faster
connections provided by others.
Now, with its $9.95 Netscape dial-up service, its $29.95 AOL High
Speed and its traditional dial-up offering, AOL has a broad range of
products at different price points, a move analysts said is essential
given the segmentation in the marketplace.
AOL is also looking to capitalize on the boom in Internet advertising
by beefing up its free AOL.com Web site. It hopes to attract millions
of computer users to the site with music, games, news and other
content, as well as by giving away free AIM.com e-mail accounts. If
it works, the AOL.com portal strategy would be similar to Yahoo
Inc.'s business model.
To provide the one-stop shopping experience for high-speed Internet
service, AOL is partnering with telecommunications wholesaler Covad
Communications Group Inc., a California firm that leases phone lines
from the regional phone companies, providing access to about 50
million homes.
AOL will handle all the branding, marketing and customer-service
calls while Covad will provide the high-speed phone lines and modems.
David McMorrow, executive vice president of Covad, said the
partnership with AOL is likely to benefit both companies because
consumers will have the ability to get high-speed service through one
phone call to AOL. He predicted that AOL's strong brand name
nationally, coupled with Covad's coverage, would give America Online
a way to begin recovering from subscriber losses.
"The two parties are putting together a compelling offer in the
market, not only for AOL users, but for folks looking for a good
combination of broadband and content at a competitive price,"
McMorrow said. "They have customers and brands and experience at the
Internet layer, and we have the infrastructure, footprint and
systems."
But if yesterday's aggressive price cutting by SBC leads to slashing
in the price of high-speed Internet connections around the country,
AOL and Covad may find themselves with fewer customers and less
revenue to share than they had projected.
creddell
19 years ago
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.
mike306oh
19 years ago
AOL Answers the VoIP Call
We test America Online's new Internet Phone Service and find it easy to use but pricey.
Tom Spring, PC World
Thursday, April 07, 2005
America Online today joins the parade of companies offering Internet telephone service.
Initially the availability of AOL's Voice over Internet Protocol (VoIP) service is limited to 22.2 million AOL members who live inside the 40 major U.S. markets where the launch is taking place. For a complete list of these cities, visit AOL KeyWord: Internet Phone Service if you are a subscriber or AOL.com.
In coming months AOL expects to make its AOL Internet Phone Service available in more markets and to open it up to non-AOL members as well.
I've tested the AOL service in its beta incarnation and, in many ways, I like it better than other VoIP services I've looked at. Setup is simple, and AOL brings some unique extras to a very crowded field. Though the service does have a few drawbacks, overall it works as AOL describes it.
What Makes It Unique?
Nate Kettlewell, AOL product manager for voice services, calls the company's VoIP offering easy to set up and use. He adds that, unlike other VoIP services, AOL tightly integrates the phone service with online components such as e-mail, contacts, and instant messaging.
"Everything about AOL is easy to use, and the AOL Internet phone service is no different," Kettlewell said. Another big differentiator is what AOL is calling "true e-9-1-1 service," which always connects 9-1-1 emergency calls directly to local emergency dispatchers.
Traditional telephone companies have resisted bringing VoIP services into the enhanced 9-1-1 system. Vonage, an early VoIP provider, has been involved in a number of disputes, most recently with regional carrier SBC, over how to implement e-911 services for VoIP.
Pricing
To attract new AOL memberships, AOL is offering current nonsubscribers a $30-per-month introductory rate to sign up for an unlimited plan that covers calling within the United States and Canada. This monthly fee includes access to the AOL service over your existing broadband connection. (You must have broadband to use the VoIP service.) At the end of six months, the price of the entire package jumps to $40 per month.
People who already subscribe to AOL have a choice of plans: A basic $19-per-month Local Plan gets a current subscriber unlimited local and regional calls plus long-distance calls at 4 cents per minute anywhere in the United States and Canada. The Local Plan has an introductory price of $14 per month for the first three months.
For unlimited local, regional, and long-distance calls in the United States and Canada, current subscribers would pay $30 per month. The introductory rate is $25 per month for the first three months.
And AOL's Global Calling Plan runs $35 per month with reduced international rates. The three-month introductory rate in this case is $30 per month.
AOL Internet Phone Service appears pricier than the plans offered by some existing competitors. Vonage, for example, has a comparable unlimited calling plan priced at $25 per month, as well as a basic $15 plan that covers 500 minutes of calls made within the United States and Canada each month.
You've Got AOL VoIP!
To get you started, AOL provides a small black adapter box that's designed to plug in between your phone and your Internet connection. Or you may plug the adapter directly into a free ethernet port on your router, as I did. I then plugged a regular telephone into the adapter--and immediately I could make phone calls that sounded exactly like calls made using a traditional telephone. This new AOL VoIP service works with AOL 7.0 and above.
AOL Internet Phone Service has some unique features. For instance, its Call Alert function allows you to route calls placed to your AOL VoIP phone to anyone on a user-created list of preset phone numbers. When your AOL VoIP phone rings, an AOL pop-up message appears on your PC displaying caller ID information--if you have the AOL software running. Next, the alert message window gives you the option of routing the call on the fly directly to voice mail, or you can forward the call to any phone number you wish.
The Call Alert feature works regardless of where you are. If you use your AOL VoIP service at home and you are online at work with AOL running on that PC, you'll see the same Call Alert pop-up window with routing options that you'd see at home. And if your PC has the right equipment (a headset or USB handset), you can answer the call right at your PC.
Other VoIP services offer similar call-forwarding features, but they don't allow you to direct the call on the fly as AOL does.
I also liked AOL Internet Phone Service Dashboard, AOL's online control center for its VoIP service. Here you have access to e-mail addresses, AIM handles, and phone contacts all in one place. You can manage your phone account, see a record of all your calls, and even check to see whether you have any voice mail messages. You can pick up such messages through your AOL inbox in the form of e-mail messages with sound files attached.
Once you set up your contacts--which means associating phone numbers with e-mail addresses and AIM screen names--you can choose how you want to communicate with someone through the Dashboard. If an AOL buddy is online, the AOL Running Man icon shows up next to his or her name. If you wish, click the icon and shoot your buddy an instant message. If your contact uses Yahoo or Microsoft instant messaging software, however, this online presence feature won't notify you that your contact may be online and available.
A clever click-to-call feature lets you click any phone number in your Contact list to have AOL dial the number for you instantly. AOL rings you first. When you pick up your phone, it rings the number you clicked to dial.
Another big positive is AOL's knack for keeping things simple. Buttons and features are clear, and I easily customized the service with my forwarding phone numbers and contacts.
AOL Disconnects
On the downside, I was disappointed that the slick AOL experience is chained to the AOL client software. At least for now, AOL says, AOL client software is required for accessing advanced communication features and for customizing the VoIP service. AOL says that this will change later this year when the company rolls out an update to its stand-alone AIM client, which will include VoIP features. When that happens, you'll able to access AOL's full set of features through standard browsers.
In the meantime, a limited number of features are available through Firefox, Internet Explorer, or Netscape. In my tests, browser-based access to the AOL Internet Phone Service Dashboard didn't offer Call Alert features or access to tools for easily listening to voice mail. To pick up voice mail, I had to access the Web-based AOL e-mail service.
Bottom Line
Because AOL Internet Phone Service is so closely intertwined with AOL and AIM, it will initially appeal primarily to AOL users. Until the service is opened up to nonsubscribers, you'll have to become a paying member to get the most out of its VoIP service.
Other drawbacks relate to the nature of VoIP itself. Like all other current consumer VoIP offerings, the phone service is only as reliable as your high-speed Internet connection. When your cable modem fails, so does your VoIP phone.
Traffic on AOL's network may also affect the quality of AOL's phone service. I can't vouch for the real-world quality of AOL's voice service because I used it at a time when only beta testers were on board. Only under the stress of normal use--with thousands of users making calls at the same time--will you be able to gauge the true reliability of AOL's VoIP service.
While VoIP technology is not new, AOL's new service does bring ease of use and some clever technology to the table. The only problem is that you'll have to pay a little extra for it.
Register for streaming realtime charts, analysis tools, and prices.
Hot Features
Premium
