Covad last week unveiled an integrated phone and Internet service targeted at small businesses with up to 35 employees per location. The Covad Integrated Access service is delivered over a T-1 line and works with customers' existing phone systems. The service uses SIP trunking and supports a range of IP, digital and analog PBXs, according to the company.

In a prepared statement, Jake Heinz, Covad’s vice president and general manager for VoIP said: “Covad Integrated Access service has been completely retooled for reliability and flexibility. With Covad Integrated Access service, businesses can start small and add phone lines as they need them. We don’t force them into bundles or service plans designed for much larger companies.”

Prices start at $435 per month with no installation fees, depending upon contract length and services ordered. Customers can start with as few as four phone lines and can add one line at time for $15 per line, upgrading to a maximum of 12 simultaneous calls per T-1.

Covad has been offering VoIP since 2004 when it acquired GoBeam, but since Covad was bought in October 2007 by Platinum Equity, it has “invested significant time and resources to further enhance the capabilities of its voice-optimized network,” according to the company.

Our observation: We’re glad to see Covad redesign its network and back office systems and upgraded its VoIP offering because Covad enjoyed early success at targeting the SMB market. With seemingly the whole world now going after the small business customer, Covad is taking the right steps to be a strong SMB VoIP and converged access competitor.

Steve Taylor is president of Distributed Networking Associates and publisher/editor-in-chief of Webtorials. Larry Hettick is a principal analyst at Current Analysis.