Covad, VarTec Bundle DSL, Voice

Covad Communications and VarTec Telecom have signed a multi-year deal to bundle DSL and
local and long-distance services. Financial terms were not disclosed.

VarTec, and its Excel subsidiary, plan to make this new offer available nationwide throughout the next year and will handle
customer service and technical support for the packaged offering.

“(The deal) demonstrates our continued execution of our business strategy to sign up both national and regional line-splitting
partners and capitalize on the growing demand for bundled voice and data services,” said Charles Hoffman, president and
CEO of Santa Clara, Calif.-based Covad.

Ron Hughes, COO of Dallas-based VarTec, said the pact, should appeal to customers.

“This will be an excellent way to offer broadband service through line-splitting and will provide our customers the convenience
of only needing to write one check for their local, long distance and DSL services,” Hughes said.

Most broadband providers carriers have embarked on bundling strategies, believing that a single point of contact for all
residential communications services will reduce customer churn — jumping between different service providers.

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