Covad will extend broadband access to merged companies, to enable expansion of VoIP services out-of-region.

SBC Communications Inc.  and AT&T Corp., yesterday announced that together have reached a services agreement under which Covad Communications Group Inc. would extend broadband access to the merged companies.

Covad Communications is a provider of broadband voice and data communications. 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 to deploy high-speed DSL broadband on the same line customers use for their voice phone services.

"Covad has been a valuable supplier. 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," said Regina Egea, AT&T vice president of global access strategy and bandwidth product management.