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Short Take: Covad wins arbitration against Pacific Bell

High-speed Internet connectivity company Covad Communications announced it has been awarded a judgment of more than $27.2 million as part of a contract dispute with Pacific Bell. Covad, which wholesales digital subscriber lines (DSL) leased from local phone firms such as Pacific Bell, also could receive attorneys' fees for failure by Pacific Bell to comply with delivery time requirements under the 1996 Telecommunications Act. The American Arbitration Association issued the ruling, though Pacific Bell is expected to challenge the award.

    High-speed Internet connectivity company Covad Communications announced it has been awarded a judgment of more than $27.2 million as part of a contract dispute with Pacific Bell. Covad, which wholesales digital subscriber lines (DSL) leased from local phone firms such as Pacific Bell, also could receive attorneys' fees for failure by Pacific Bell to comply with delivery time requirements under the 1996 Telecommunications Act. The American Arbitration Association issued the ruling, though Pacific Bell is expected to challenge the award.