Covad Adds Voice to High-speedData Offer

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