Covad reveals VoIP plans

Covad Communications today announced it would launch wholesale and direct VoIP services over its SDSL and T-1 lines in the fourth quarter and prepare the way for a future consumer packet voice launch of ADSL in the future.

Covad is opting to go with a facilities-based VoIP partner instead of deploying its own infrastructure for its impending rollout, though Covad officials said they are not ready to announce which carrier they plan to work with. The service will bring IP all the way to the customer premise, using integrated access devices to connect to its DSL customers’ separate DSL and voice networks. For small and medium-sized business customers, Covad will also offer a virtual PBX, or Centrex IP, service utilizing SIP phones and other enhanced service devices. Covad is currently trailing several vendors’ IAD equipment and expects to select a CPE vendor soon.

Covad made it very clear that it plans to keep its role as an access provider in this VoIP rollout. It has no plans to upgrade its ATM backbone to IP or get into the switching or transport business.

"We have long-standing relationships with carriers that work very well," said Steve Lail, vice president of voice deployment for Covad. "We’ll deliver the connectivity to the user and our customers with the network we have in place, connecting both to the service provider and to the PSTN."

Covad will also offer the service retail, selling through channel partners and resellers, many of which already combine Covad’s broadband services with their own or other carrier’s voice services. Covad expect to make most of its impact on the wholesale side, Lail said. The company has already landed major line-splitting DSL contracts with many of the major IXCs and voice carriers in the market. The new VoIP service portfolio allows the carrier customers to jump quickly into business IP voice services and eventually into consumer services after Covad perfects its VoIP over ADSL platform, Lail said. He added that the service also opens new opportunities with the ILECs who are expanding their own VoIP business services outside of their territories.

Covad will begin trailing services with its partner in several markets by mid-year in preparation for its fourth-quarter launch and hopes to have services launched in a majority of its metro markets by the end of the year. Its initial service package will be fairly basic, offering variations of basic voice and long-distance packages, adding on business office features for small and home offices and network-based PBX services for larger businesses. While Covad plans to launch more enhanced features such as video conferencing and multi-casting it is still investigating user interface and CPE equipment for those features, Lial said.