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Posts from September 2004

The Vonage Price Drop

Sometime back I posted a ARPU of $4800 for each Vonage subscriber in extended valuation. But with their drop in price that equates to roughly 17%, that means their value per sub is now under $4000.00.

I think they should thank AT&T for not dropping the price of CallVantage before Vonage closed their last round otherwise the stock would have been worth less that they received.

Robertson: The Plaintiff

In what is clearly a reversal of roles, Michael "DisruptionMaster #1" Robertson a has filed lawsuit against Vonage for what is effect is false advertising in California court.

For Rorbertson, who was sued by the record industry when he led and then by Microsoft for Lindows, the courts have always been a marketing vehicle. In this suit he's taking on the role of protector of the downtrodden and afflicted SipPhone users who may have purchased or wanted to purchase Vonage ATA manufactured by Linksys.

What's so interesting is Michael excluded Linksys, and in reality all the manufacturers of TA's. Why? Because Vonage is a hot topic now and Michael relishes in attention that others can generate for him. While his pursuit is noble, the media coverage alone for SipPhone is worth the price of filing the lawsuit.

Bravo to my Del Mar, CA neighbor for again finding a way to keep his company in the news !

VoIP Key To Broadband Growth

A VNU account says that VoIP will be key to the growth of broadband. This clearly indicates that AT&T's strategy of working with cable companies to sign up new broadband customers is right on the mark.

While Vonage may have been first with the strategy of working with cable operators to offer a PSTN replacement, it's AT&T's comprehensive advertising and marketing campaign that will drive the marketplace's awareness as AT&T has the money and the experience to lead and really break the category.

As cable operators roll out third party VoIP and their own flavors, adoption and subscriber numbers can only increase.

CallVantage Lowers Price

In what is not a big surprise, but clearly the right move, AT&T has announced a lower monthly price for their CallVantage service.

Here's the full text of the press release until the web link becomes available.

AT&T Lowers Price of its Residential VoIP Service

New Rate of $29.99 per month Replaces Expiring Promotional Offer


BEDMINSTER, N.J. - As part of its continuing efforts to spur growth in emerging technologies, AT&T today announced it is lowering the price of AT&T CallVantageSM Service, its popular residential broadband phone service, from $34.99 to $29.99 per month beginning October 1.

In addition, under some offers AT&T will provide the first month of service free to new subscribers who sign up before January 31, 2005. The new $29.99 pricing will be effective for all existing subscribers beginning October 1 and includes unlimited local and long distance calling in the U.S. and to Canada. This offer replaces the well-received introductory promotional offer in the market for the past six months.
"Having completed the initial market build-out to support AT&T CallVantage Service, we're now concentrating on expanding our distribution channels through retail and online sales," said Cathy Martine, AT&T senior vice president for Internet Telephony. "Pricing the service for the holiday shopping season fits our expansion strategy and makes AT&T CallVantage Service even more affordable, which is great news for consumers as we give them more of what they want for less.

"In fact, we believe that once those consumers evaluate VoIP and compare it to their existing telephone service, they will recognize AT&T CallVantage Service provides more features and savings making it a compelling offer."

AT&T CallVantage Service is available to any U.S. consumer and provides a local footprint to 62 percent of the households in America due to its broad penetration in more than 170 markets coast-to-coast.
Upon signing up, all that's required to use AT&T CallVantage is a telephone adapter provided by AT&T or its valued retailers, and a broadband connection, which lets consumers talk over high-speed Internet connections instead of traditional circuit-switched phone networks.

AT&T CallVantage Service is different than traditional phone services because, through the use of IP-based networks, it can offer customers typical features such as call waiting, three-way calling, and call forwarding, and far more advanced ones as well. Indeed, consumers will get unprecedented convenience, cost savings and control with innovative features including:

* "Call Logs," to track incoming and outgoing;
* "Do Not Disturb," to receive calls only when wanted;
* "Locate Me," which rings up to five phones, all at once, or sequentially;
* "Voicemail with eFeatures," to listen to messages from any phone or PC and forward them to anyone on the Web;
* "Simple Reach(SM) Number, which enables AT&T CallVantage Service customers to add up to nine telephone numbers with area codes anywhere in the country where AT&T offers residential VoIP service; and
* "Personal Conferencing," to set up meetings with up to nine additional callers.
AT&T also recently began shipping a "Home Wiring Do-It-Yourself Guide" with each self-install kit that provides customers step-by-step instructions for connecting the service to multiple home phones to replicate the traditional home calling environment and make the most efficient use of their existing telephone equipment.
For those homeowners who prefer that a trained technician perform the work, AT&T has a fee-based inside wiring service to reconfigure existing lines and telephone jacks, install additional jacks if required, and provide limited assistance with service set-up.
Continuing its market momentum, AT&T has expanded its distribution channel by adding leading retailers, Best Buy and Circuit City to its sales team.
To learn more about AT&T CallVantage Service, consumers can visit , call 1-866-816-3815, extension 70339, or visit one of these retailers.

WSJ Challenges Level 3

While I'm high on Level 3 as a network, one has to sometimes look at their business from a financial perspective and wonder. They are aggressive and seem to be indicating they will become even more so, based on this Wall Street Journal article that ran yesterday.

I'm somewhat neutral and think that time will tell.

SBC Bigtime Business Voice

I have to admit, I used to have a few friends who were with SBC in management in California, and recall conversations about the companies plans to become a big-time VoIP player by taking advantage of their data client base.

Well, it seems they have indeed moved solidly in that direction with the release of a report from IDC.