Covad, Qwest Strike Line-Sharing Deal

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Covad Communications Group Inc. and Qwest Communications International Inc. have completed a three-year commercial line sharing agreement, which enables Covad to continue to offer DSL within the Qwest region. This marks the first time a competitive carrier and an RBOC have negotiated commercial terms for access to line sharing since the FCC’s Triennial Review decision.

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.

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," says 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."

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