Press Release Source: Covad Communications
http://biz.yahoo.com/bw/020905/50028_1.html
Covad Announces Wholesale Service Agreement With America Online to Provide Broadband Services
Thursday September 5, 7:00 am ET
SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 5, 2002--Covad Communications (OTCBB:COVD - News) announced today that it has signed a five-year agreement with America Online, Inc. that provides America Online with the ability to purchase wholesale Digital Subscriber Line (DSL) consumer services throughout Covad`s nationwide network.
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America Online will now have access to Covad`s nationwide network, which currently covers more than 40 million U.S. homes and businesses and includes service in 94 of the top Metropolitan Statistical Areas (MSAs) across the United States. As a result, the agreement will increase the number of options available to America Online in offering broadband services to its members.
"The addition of America Online as a wholesale partner enhances our distribution channel enabling us to provide services to the largest Internet service provider in the country," said Charles E. Hoffman, Covad CEO and president. "It also gives America Online the flexibility and scalability of a single, national resource for their millions of customers who want to upgrade from dial-up to a high-speed, always on broadband connection."
In addition, Covad issued warrants to America Online to purchase a total of 3.5 million shares of Covad common stock, which is equal to approximately 1.5 percent of Covad`s currently outstanding common stock. America Online will have the option to purchase Covad`s common stock at exercise prices ranging from $1.06 to $5.00. Covad has determined that the warrants have an aggregate estimated value of approximately $3.5 million. Covad expects to record this value as a deferred customer incentive and charge it against revenue over the term of the service agreement.
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AOL dürfte der größte Internetzugangsprovider der westlichen Welt sein. In den USA haben sie Direktmarketingmöglichkeiten zu 40 Millionen Internetkunden. AOL ist im Sinne der Wettbewerbsfähigkeit auf ein aktives Marketing seines Breitbandanschlußes angewiesen. Sollte Covad der Exklusivprovider für Breitband und AT&T für Kabel sein, wäre Covad automatisch in einer sehr komfortablen Rolle. AOL-Werbekampagnen (z.B. für Herr der Ringe) können sehr effektiv sein. Wenn die Zusammenarbeit gut klappt, könnte AOL auch ein Interesse haben, seinen Anteil an Covad von bald 1,5% zu erhöhen.
Ein Ansteigen der Nutzerzahlen im Konsumentenbereich ist zu erwarten. Problematisch könnte die Attraktivität von AOL für "fortgeschrittene" Nutzer sein, da AOLs proprietäre Software nicht sehr attraktiv ist. Trotz allem eine SEHR POSITIVE Nachricht, wie auch der Anstieg heute um 20% zeigt.
Grüße,
Bannerman
