BY TIM GREENE Covad Communications' digital subscriber line (DSL) network business could explode this year. After much preparation, the company finally has what it needs to deliver broadband Internet and corporate access over regular phone lines: It methodically did the grunt work of winning state-by-state competitive local exchange carrier status, approval it needed to lease phone lines from traditional local carriers, the regional Bell operating companies. It leased space for its DSL gear in RBOC switching offices. It formed alliances with ISPs and phone companies that will resell Covad DSL services. It issued public stock, pulling in the money it needs to finance its service rollout. Perhaps its greatest achievement so far is lining up AT&T as an investor - $25 million - and a reseller of Covad DSL services, according to Eric Paulak, an analyst for Gartner Group, a consultancy in Stamford, Conn. Covad's TeleSpeed services give customers access to the Internet or corporate networks at speeds between 144K bit/sec and 1.5M bit/sec. In addition, Covad has signed up other key service providers, Qwest Communications and Concentric Networks among them, as investors and resellers. In 1996 when the company was formed, Covad took one look at DSL technology and saw what it could mean for businesses: fast, inexpensive access to corporate networks and the Internet using regular phone lines. It decided to forego the feature that allows an analog voice channel on the same line as the DSL datastream because it thought business customers did not need it. Covad also focused on DSL flavors that provide symmetric bandwidth, even though asymmetric varieties offer higher speeds in one direction. Business customers want to send and receive at roughly the same speeds, Covad thought. So far, the company's analysis has won broad support among others in the industry. And last year, Covad's first full year offering services, it took in $5.3 million in sales - with services available in only seven cities. The rollout so far gives the company access to six million potential customers. And the company has announced plans to sell DSL in 22 cities by the end of the year. While it is enjoying success, Covad is being pursued by some formidable opponents that also bear watching, including NorthPoint Communications and Rhythms Netconnections. But with the focus, funding and execution it has shown so far, Covad should be around for the long term. Go to Foundry Feedback Tell us your thoughts on this page. Comments: Name: E-mail address: What did you think of this page? Very useful Somewhat useful Not at all useful Would you want to see: More resources on this topic Fewer resources on this topic Thank you! When you click Submit, you'll be taken back to this page.