Covad Sees Lower UNE T-1s Rates in California

Commenting on the decision by the California Public Utilities Commission last week to specify permanent rates for certain unbundled network elements (UNE), Covad Communications noted that while the rates for most UNE-L and UNE-P elements was increased, the rate for UNE T-1 was decreased. The order substantially decreased average monthly recurring charges for UNE T-1s, from $93.91 to $57.42. In the most densely populated areas, where most of Covad's subscriber base resides, the T-1 rate dropped from $89.68 to $49.49 a month.



In a statement, Jim Kirkland, senior vice president and general counsel for Covad, said "Lower T1 rates will help us meet the growing demand for reasonably priced business-class VoIP services. In addition, the rate increases for UNE-L loops are at or below the rates Covad typically pays for UNE-L loops nationwide. Since Covad is a facilities-based provider, we do not rely on unbundled switching from the ILECs or UNE-P, where the rate increases were more substantial. The increase in some rates for Covad is offset by the significant decrease in other loop rates."http://www.covad.com