Denver, January 19, 1999 -- Qwest Communications International Inc. announced today that it has made its first strategic investment in Digital Subscriber Line (DSL) local networks through an agreement with Covad Communications Group, Inc. By the end of 1999, Qwest plans to have access in 22 key metropolitan markets, including Boston, Chicago, Dallas, Los Angeles, New York City, Philadelphia, San Francisco, Seattle and Washington, D.C. DSL enhances Qwest?s ability to provide customers with high-speed, end-to-end connectivity to its nationwide IP-based network and the Internet. Qwest is investing $15 million in cash in Covad.
Covad is a packet-based Competitive Local Exchange Carrier that provides DSL communications services to Internet Service Providers and enterprise customers. Covad has signed a multi-million dollar, multi-year agreement to purchase network capacity from Qwest to interconnect its high-speed local networks.
"With the explosive growth of the Internet, including e-commerce and web-hosting, it is critically important that Qwest has direct, unrestricted high-speed broadband access to its customers," said Joseph P. Nacchio, Qwest president and CEO. "The agreement with Covad provides us with a creative, cost-effective local connectivity solution that will allow our customers to maximize the benefits of our high-speed network."
Qwest Communications International Inc. (Nasdaq: QWST) is a leader in reliable and secure broadband Internet-based data, voice and image communications for businesses and consumers. Headquartered in Denver, Qwest has more than 8,000 employees and 80 sales offices in North America, Europe and Mexico. The Qwest Macro Capacity (SM) Fiber Network, designed with the newest optical networking, will span more than 18,500 route miles in the United States when it is completed in mid-1999. Qwest also has a pan-European venture with KPN, the Dutch telecommunications company, to build and operate a high-capacity fiber optic, Internet Protocol-based network that covers 2,100 miles and will span 9,100 miles when it is completed by 2002. Qwest also has nearly completed a 1,500-mile network in Mexico.
This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Qwest with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including potential fluctuations in quarterly results, dependence on new product development, rapid technological and market change, failure to complete the network on schedule and on budget, financial risk management and future growth subject to risks, Qwest?s ability to achieve Year 2000 compliance, adverse changes in the regulatory or legislative environment, and satisfactory negotiation and execution of definitive documentation.
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