Covad, New Edge to share nationwide footprints

Covad Communications and New Edge Networks today announced an agreement to resell DSL and T-1 services from each others networks, greatly increasing the size of both carriers national footprints.

Under the agreement Covad will have access to 600 New Edge central offices in its tier two and three markets. New Edge, in turn, will be able to extend its DSL reach into major markets, having access to Covad’s 1800 COs in the 96 of the 100 largest U.S. metro areas. Amazingly there is practically no overlap between the two carriers’ networks. Covad and New Edge share only 20 COs in common, most of which are in the Vancouver, Wash., area, where New Edge makes its home. And according to the two carriers, their combined footprints give it the largest reach of any DSL provider in the nation.

“At one point in early 2000, Covad was working on the second and third phases of our network rollout expanding into smaller markets,” said Catherine Boone, vice president of external affairs. “A lot of those Tier two and Tier three cities got mothballed because of economic conditions, but this deal gives us the opportunity to serve those markets.”

Most of the resale activity will be focused on Covad as it plans to use the New Edge’s markets to complete its service offerings to large businesses and enterprises. New Edge targets small businesses, which often don’t require access in large markets, but CEO Dan Moffat said New Edge plans on using Covad’s reach to fill out its broadband service offerings in large markets where it offers frame relay, T-1 and fiber access over its recently acquired @work assets. While the carriers will be competing with each other nominally, Moffat said such competition is nothing new.

“In this business you’re a partner, a supplier and a competitor, all at the same time,” Moffat said. “Nobody has facilities everywhere. The only way to ubiquity is to use other people’s facilities.