New Agreement with Covad Allows Z-Tel to Deliver Broadband Services to Its Telecom Customers
May 15, 2003 08:05:00 (ET)
TAMPA, Fla., May 15, 2003 (BUSINESS WIRE) -- Z-Tel Technologies, Inc. (Nasdaq/SC: ZTEL), a leading provider of local, long distance and enhanced telecommunications services, announced today it has signed a two-year Broadband Internet Access Services Agreement with Covad Communications (OTCBB: COVD) that enables Z-Tel to offer broadband services to its customers. Through the non-exclusive agreement, Z-Tel gains access to Covad's Digital Subscriber Line (DSL) network and services and plans to begin providing Covad-powered Symmetric DSL (SDSL) services to business customers in Covad's service territory within the next sixty days. The fee structure of the contract is on a per-subscriber basis and does not require Z-Tel to purchase a minimum amount of Covad services.
"Through this agreement, we're expanding our portfolio of services to become a true one-stop shop for our business customers," commented Gregg Smith, Z-Tel's president and chief executive officer. "Our affiliation with Covad changes the game for the often-ignored small businesses that have unique efficiency requirements. The combined powerful benefits of Covad's nationwide broadband network- and Z-Tel's enhanced suite of voice services make for a highly compelling package for them, and we're excited to offer companies these services that can both save them money and enhance their productivity."
As a provider of Covad services, Z-Tel will offer DSL services under its own name, so customers will receive one bill from Z-Tel for both voice and broadband services, and Z-Tel will be the first point of contact for customer service issues.
"Our relationship with Z-Tel complements our strategy to expand our distribution channels for our broadband services through strategic voice partners," said Charles Hoffman, president and CEO of Covad. "Like Z-Tel, Covad has a rich history of innovation and is committed to providing competitive broadband choices for consumers and small businesses. Working together we can accelerate the deployment of bundled voice and data services."