Covad Communications Enters Into Strategic Relationships With AT&T and NEXTLINK.SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan, 4, 1999--Covad Communications Group, Inc. announced today it has entered into separate strategic relationships with AT&T Corp. ("AT&T") and NEXTLINK Communications, Inc. ("NEXTLINK"). As part of these relationships, the Company will receive an equity investment of $25 million from AT&T Ventures, the venture capital arm of AT&T, and two affiliated funds, and $20 million from NEXTLINK. These investments will be used to support the deployment of the Company's Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and ("DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary ") based network in new and existing regions. The Company also entered into commercial agreements with each of AT&T and NEXTLINK providing for the purchase of transport services, marketing and resale of the Company's DSL services, and collocation of the Company's network equipment. The Company, AT&T and NEXTLINK did not disclose any additional terms of the strategic relationships. About Covad Communications Covad Communications is a leading packet-based Competitive Local Exchange Carrier that provides dedicated high-speed digital communications services using DSL technology to Internet Service Provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. ("ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. ") and enterprise customers. The Company launched its services in the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay , Los Angeles, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Boston, Washington D.C. and Seattle metropolitan areas and has announced plans to deploy its networks in a total of 22 regions nationwide. References to Covad Communications and the Company herein refer to Covad Communications Group, Inc. and its subsidiaries. Their corporate headquarters is located at 2330 Central Expressway, Santa Clara, Calif., 95050. For more information concerning Covad Communications Group, Inc. and the TeleSpeed(R) service visit: http://www.covad.com or email investorrelations@covad.com. Telephone: 408/844-7500 or 888/GO-COVAD; Fax: 408/844-7501. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements, including but not limited to, statements regarding the success of the strategic relationships with each of AT&T and NEXTLINK, deployment of the Company's network in new and existing regions, and the speed and breadth of coverage in each region. Actual results may differ materially from those anticipated in any forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the Company's dependence on strategic third parties to market and resell its services, intense competition for the Company's service offerings, dependence on growth in demand for DSL-based services, and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. |
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