Covad, Verizon Strike Accord

Covad Communications Group Inc., the high-speed Internet provider, on Wednesday announced signing a commercial agreement with Verizon Communications Inc., the biggest local phone company.

The agreement clears the way for Covad to continue providing broadband services over a portion of Verizon’s phone network for four years.

Covad says the pact allows the company to continue offering high-speed Internet services to thousands of small and medium businesses and home users in the 19 states within Verizon’s territory.

Earlier this year Covad entered similar agreements with Qwest Communications International Inc. and SBC Communications Inc. after federal regulators voted to phase out so-called line-sharing rules that guaranteed Covad and other competitive high-speed Internet providers access to the phone networks.

“With the Qwest, SBC and Verizon agreements, Covad now has secured continued access to line sharing with carriers accounting for approximately 90 percent of our line-shared customer base, and the pricing in these agreements allows Covad to provide very competitive service offerings to our customers and partners,” Covad President and CEO Charles Hoffman said in a press release.

Covad has yet to strike an agreement with BellSouth Corp., the third largest local phone company, to secure access to its network.

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