Broadband data CLEC Covad Communications this week said it plans to roll out VoIP services to businesses and consumers in the fourth quarter of this year.

Covad said it will offer the service to most of the top metro areas in the U.S. Covad's nationwide network is accessible to 45 million homes and businesses in 96 of the largest metro areas in the U.S.

Covad had a voice-over-DSL (VoDSL) trial in the San Francisco area that ended in mid-2003. Analysts say VoDSL can't compete with integrated voice/data T-1s from the ILECs.

The operator will initially launch three VoIP products targeted at businesses: "basic" voice, small office/home office (SOHO) voice, and virtual PBXs for enterprise users.

A consumer VoIP offering will follow the launch of Covad's business VoIP services.

All three business voice products will include unlimited local calling with the option of either bundled domestic long-distance minutes, or unlimited domestic long-distance calling. These products will support international and inbound toll-free calling.

Local number portability, emergency 911 and directory assistance will be standard features. The products will be bundled with Covad's broadband Internet access, Web hosting, and corporate e-mail hosting services.

VoIP technology promises to enable businesses and consumers to cut telephone service costs by running voice as an application on a data network that's currently unencumbered by multi-operator access fees and other charges. Covad, citing data from Stratecast Partners, expects the U.S. VoIP market to grow to more than 5 million subscribers by 2007, a fivefold increase over 2002 levels.

Covad will sell VoIP directly to consumers and also to wholesale resellers. Market trials will begin mid-year with rollout commencing in the late third quarter or early fourth quarter.