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Posts from April 2010

The Return of CallVantage???

Reports out of are bubbling up that has the nations top phone company bringing a CallVantage like service to life according to reports sources have shared with me.

The new service will be called Vantage, and will carry a $14.99 a month price tag, with discounts offered to existing mobile phone customers that will reduce the price to as low as $4.99 a month for unlimited calling. The service, which will come with the option of being bundled with a Femtocell, will be used as a loss leader to bolster the network coverage nationwide, as well as enable an out of market play in areas where coverage for wireline has been lacking. Some analysts feel that the addition of the Femtocell that will be given away to charter customers will enable the carrier to save billions of dollars of network build out, and at the same time show recurring revenue that offsets the Opex expense of the devices. Customer's opting for the Femtocell will receive two years free service, as long as they agree to share access to the cell to other mobile network users.

While details are sketchy, in addition to working over IP connections such as uVerse, FIOS, DSL as well as cable modem, there will also be a fixed mobile convergence play tied to the service. Tri-Mode phones that offer connections over WiFi, 3G and LTE are be planned for launch at CTIA in the fall and for sale in 2011.

Trials are expected to begin in the Jersey shore city of Long Beach Island this summer with former Bell system employees of the company being offered the service first in early alpha testing there and in other parts of the country.

M&A In The Broadband and Voice World

Yesterday Covad merged with Megapath, thus creating a vary large managed service local exchange carrier.

What this means:

1) Some job functions will be combined, largely back office, customer support, network operations

2) Expansion of footprint for both companies

3) Less choice and a lessening of competition in the alternative carrier space vs. the telcos and the cable companies

The merger is expected to close in the 3rd quarter of this year.