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To: Jim S who wrote (4603)	11/5/1998 2:44:00 PM
From: Scrapps	Respond to of 9236

For those following the FCC rulings. This gives a bit more insight into the thinking and effects of the recent ruling. Covad Communications Applauds FCC Decision To Treat DSL Services as Private-Line Interstate Telecommunications Services SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 5, 1998--Covad Communications Company, the first Packet Competitive Local Exchange Carrier and a leading provider of digital communications services, praised the balance struck by the Federal Communications Commission (FCC) in its recent decision to treat Digital Subscriber Line (DSL) services as private-line interstate telecommunication services. ''With this decision, the FCC has established the foundation to assert its rightful role in ensuring that all Americans receive the benefit of the competitive provision of DSL services,'' said Dhruv Khanna, vice president and co-founder of Covad Communications Company. ''At the same time, the FCC made it clear that incumbent LECs must continue to abide by their current interconnection agreements with CLECs.'' The FCC issued an Order on Friday, Oct. 30, which ruled that GTE's ADSL service offering is an interstate service while explicitly upholding existing reciprocal compensation arrangements between ILECs and CLECs with regard to analog dial-up calls to Internet Service Providers (''ISPs''). Because the company only provides all-digital, ''always-on'' dedicated private-line services, Covad does not receive any revenue from analog dial-up calls to ISPs. ''The FCC has long treated ISPs as end-users, and the FCC should continue with that tried and tested regulatory principle,'' Khanna said. ''In the long-term, data traffic properly belongs on packet-based networks such as Covad's. Full payment by all carriers of the true reciprocal compensation costs of exchanging data traffic on circuit-switched networks will only accelerate the migration of that data traffic to more efficient data networks.'' All ILECs and regulators alike now have a direct incentive to accelerate the deployment of DSL networks. Earlier this year, Covad filed an amicus brief with the Supreme Court, arguing that the interstate nature of the Internet and DSL services gives the FCC the legal right to determine how incumbent LECs must provide the facilities used to provide DSL services to companies like Covad. ''Covad looks forward to working with the FCC and the states to fully implement this decision,'' Khanna said. About Covad Communications Company Covad Communications is a leading packet-based Competitive Local Exchange Carrier that provides dedicated high-speed digital communication services using Digital Subscriber Line (DSL) technology to enterprise and Internet Service Provider (''ISP'') customers. The company has launched its services in the San Francisco Bay Area, Los Angeles, New York and Boston metropolitan areas and has announced plans to deploy its service network in a total of 22 regions nationwide. Covad Communications' corporate headquarters are located at 2330 Central Expressway, Santa Clara, CA 95050. For more information concerning Covad Communications Company and the TeleSpeed service visit: covad.com or e-mail sales@covad.com. Telephone: 408/844-7500 or 888/GO-COVAD; FAX: 408/844-7501.

To: Jim S who wrote (4603)	11/5/1998 3:14:00 PM
From: Scrapps	Read Replies (1) \| Respond to of 9236

Jim as I understand it, we were talking about two types of lines...(1) Cable...like in cable TV, and (2) Fiber...like in optic fiber lines. Didn't know the phone lines were involved. My further understanding (or maybe my misconception) is the voice signal from phone would be converted to digital and sent along the cable and optical in digital form...same as the data is. However, none of this is relevant if we are in fact talking about the phone line and not the other two.