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Packet 8 To Power UK Retail VoIP Play

Packet 8 landed a deal with Dixon's in the UK to market a retail VoIP product called FreeTalk.

This means now both VONAGE and P8 are in the British Isles with a Voice Over IP product. While Vonage is taking the direct market route Packet 8 chose to sell a private label version to a company that put the deal together.

Packet8 also announced they have put a data center in the UK to handle the demand.

On the surface this is a good move for them as it shows some expansionist views. On the other hand with BT dropping prices yesterday for VoIP customers using BT Communicator, the pressure is on in the pricing arena.

Also in the UK the range of options for DSL providers is far greater. One unanticipated issue will be the carrier's handling of what's viewed as great service on one network not be the same on another. This could turn out to be a customer service nightmare for Dixon's.

On the other hand, for Level3 this is a win as well, assuming Packet8 kept them as their network partner in the UK.