Covad VoIP to Supplant Level(3)”s Discontinued (3)Tone

February 8, 2005


CovadLevel(3) resellers of the about-to-be-discontinued Level(3) (3)Tone service are being offered special one-time bonuses and financial incentives to replace it with Covad VoIP.

Covad Communications Group, Inc (OTCBB:COVD) announced today a special offer for the nearly 100 Level(3) resellers that were selling the Level(3) (3)Tone Business VoIP product, which Level(3) is discontinuing in June of this year.

(3)Tone was introduced in September 2003 after Level(3) acquired startup Telverse Communications, which developed it. The service is highly integrated, and doesn’t offer channel partners any open development opportunities.

Level(3) has had much more success with its consumer VoIP service, (3)VoIP Enhanced Local, a wholesale offering that carriers and cable operators can enhance with their own features and bundle with other services in a modular fashion.

However, in the increasingly competitive VoIP marketplace, Level(3) resellers who become Authorized Covad VoIP dealers by March 15 will be eligible for special one-time bonuses and financial incentives, and Covad will waive the set-up fees and router charges for these reseller’s customers who sign-up for Covad VoIP by April 1.

Besides the financial incentive, Covad will work to ensure a smooth transition to Covad VoIP, which it says offers a richer feature set than (3)Tone Business and is is specifically designed for the small and medium business market.

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