Verizon and Covad Reach Interim Wholesale Agreement

NEW YORK - Verizon announced today that it has concluded an interim line-sharing agreement with Covad that will remain in effect through Jan. 31, 2005, while both companies work toward a longer-term commercial agreement.

In line-sharing arrangements, Verizon leases the high-frequency portion of its copper loop to a data services provider, such as Covad, which may then use the leased spectrum to provide DSL services to its end-users. Under an order issued by the Federal Communications Commission last fall, Verizon had planned to stop accepting new orders for line-sharing after Oct. 1, 2004. Under the interim agreement, Verizon will continue accepting orders for new line-sharing arrangements from Covad on an interim basis at a negotiated rate while the parties work toward a longer-term agreement.

Verizon continues to work with competing local exchange carriers to establish commercial agreements providing certainty and stability in place of continuing regulatory uncertainty.

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