Covad on FCC Ruling

Here's the first of many responses I expect today regarding the FCC decision.

This from Covad -- the complete release is below.

COVAD Applauds FCC Decision to Require All VoIP Providers to Implement ''Enhanced 911'' Service

Covad Already Builds E-911 Service into All of Its Managed VoIP Phone Lines

SAN JOSE, Calif.-- May 19, 2005--Covad Communications Group, Inc. (OTCBB:COVD), a leading nationwide provider of integrated voice and data communications, today applauded the Federal Communications Commission's ruling that Voice over Internet Protocol (VoIP) providers must include enhanced 911 service to their customers. The unanimous decision came at this morning's open FCC meeting.

E-911 service pinpoints a distressed caller's location so emergency services can respond immediately. Covad provides E-911 service on all of its managed VoIP phone lines.

"Enhanced 911 (E911) services have saved countless lives since their introduction," said Jeff Ahlquist, Covad vice president, product management and development. "We recognized this when we launched Covad business-class VoIP service; making E911 a fundamental feature on every single one of our managed VoIP phone lines was crucial. Covad applauds Chairman Martin and the FCC for today's decision."

Covad uses turn-key E-911 service provided by third-party vendors. These providers work with the local phone companies and others to update end-user information in industry telephone databases such as E911 and directory listing services. Covad has built this service into its business-class managed VoIP product from the day it was introduced to the market.

"These services charge per customer," explained Ahlquist. "Because Covad's business customers often have 10-200 users at a single customer site, the cost per line for E-911 services is much lower than it would be for consumer VoIP offerings. Business-class lines also provide higher margins than consumer lines, therefore the incremental cost of E911 is much less significant."

Covad does not provide E-911 on the very small percentage of unmanaged lines that it services. "We foresee no difficulties in extending this service to the few customers we have who are on unmanaged lines," said Ahlquist.