Covad, Sprint make DSL pact

By Susan Rush
from CED Broadband Direct, July 29, 2002

After abandoning Sprint ION, Sprint is looking to double its potential market coverage for business-class DSL, and is turning to Covad Communications to make it happen.

The duo has inked a third-party wholesale agreement in which Sprint will purchase wholesale DSL services from Covad for sale to its business-class customers in select markets. The deal will enable Sprint to offer ADSL, IDSL and SDSL services to enterprise customers.

Although financial terms were not disclosed, the deal does not call for any volume or revenue commitments from Sprint, Covad said in a statement.

Sprint will begin placing orders for Covad services in the third quarter.

Earlier this month, Sprint announced its Global Markets Group, which includes its long-distance business, would exit the DSL game in cities where it has found a better way to deliver service or where the high access and infrastructure costs make it difficult to continue service. Sprint stressed that its business division would continue to offer its Sprint FastConnect DSL service.