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Now Vonage Will Also Sell Broadband

Source: gigaom.com

After a really rough 2007, Vonage (VG), the independent voice-over-IP service provider, seems to be having a better 2008. This morning the company reported its first-quarter 2008 financial results, and well, things are not bad. Not spectacular, but not bad, either.

More importantly, the company announced plans to sell Covad DSL services, rebranded as Vonage Broadband and tightly coupled with its VoIP service.

Revenues increased sequentially by 4 percent to $225 million, thanks to an increase in the number of subscribers (30,000, bringing the total up to 2.6 million) and average revenue per user to $27.85, up from $27.42 sequentially. The net loss for the quarter was about $9 million, or 6 cents a share. The only bad news: Average monthly customer churn increased to 3.3 percent in the first quarter of 2008 from 3 percent in the fourth quarter of 2007.

More importantly, the company is looking to diversify its business, and today said it’s going to start selling broadband service. It has formed a partnership with Covad, which is going to provide the DSL pipes for the new Vonage Broadband service, which will be available to both residential and small business customers. The company expects the new service to be available by the end of the year.

This is a smart, strategic move by the company, which has been punched silly by the incumbents. I’m surprised it took them so long. I think this helps Vonage overcome all the problems created by broadband providers and their networks. Now the big question is: Will consumers buy DSL service from a company with a checkered record when it comes to service and customer satisfaction?

Disclosure: Covad is a sponsor of GigaOM.

Published on May 8th, 2008 under , , , , ,

Covad Communications Snapped Up

Source: www.voip-news.com

When I say “snapped up,” it makes it sound like a bargain bin find, but let’s face it, when it comes to buying companies, I’m not sure there’s a bargain to be found, unless they’re in dire straits.  That being said, the Covad Communications Group, Inc., a well-known provider of voice and data communications, recently announced that they are going to be acquired by an affiliate of Platinum Equity in an all-cash deal.  I love it when they say “all cash,” because I immediately envision a briefcase stuffed to the gills with the cold, hard stuff, when that obviously isn’t the case.  Still, it’s fun to imagine!

Covad will be acquired for $1.02 a share, which represents a “59 percent premium to the closing price of Covad’s shares on October 26th, 2007,” so says their recent press release.

“After a careful and extensive review of our strategic alternatives, our Board of Directors has determined that the substantial premium to the current market price provided by this transaction offers the best value for our stockholders,” said Charles Hoffman, Covad President and CEO.  “Furthermore, Platinum’s approach will bolster the successful execution of Covad’s business strategy while providing the resources and support necessary for sustained growth.  We believe that the resulting increased market competitiveness, improved capital structure, and enhanced product and network capabilities best position our customers, partners, and employees for the future.”

Published on November 8th, 2007 under

Andy Abramson the Citizen Kane of VoIP?

Source: goebel.net

I always wondered about the power of Comunicano. That’s the marketing communications company of Andy Abramson, one of the most intesting bloggers in the VoIP industry. From some of his blog posts I already had gotten the vague feeling that he must be some kind of mastermind.

Many of my blog posts lead back to information that Comunicano spread. But I could realize that only recently, because Comunicano’s website is nearly empty. No press releases, no list of clients - while Andy, the company’s founder and head, is one of the most influential bloggers in the VoIP industry.

Some weeks ago I wrote how I feel about this situation:

Especially the VoIP area, which became a main focus of this blog, is dominated by blogs of entrepreneurs who have an interest in maximizing their profits. Luca, Andy, David, Alec, Pat and others run great websites, but there you will hardly find tipps on how to hack their companies’ services for free phone calls. They use their blog as a business tool.

Today I realized that my blog is full of Comunicano’s clients: Covad, Entriq, IntelePeer, iotum, Junction Networks, Mobivox, Nokia, PhoneGnome, SightSpeed, TalkPlus, Thomas Howe, Truphone, Voxalot and Vringo. Comunicano has set up a blog with their latest press releases and finally published their list of clients.

Thank you for this disclosure, Andy. I feel better now. It helps me to judge the posts on your blog which often are starting points for my own articles. I would have written these texts anyway because the topics were interesting. But it’s always better to know precisely who is feeding you an information.

Also now it’s easier to get first hand information about these companies without delay. Kudos to Comunicano for interesting and not annoying press relations so far!

I appreciate openness.

VoIP Ranking Q2 2007 according to Number of Subscribers

Source: snapvoip.blogspot.com

ISP Planet has released it’s quarterly VoIP service provider ranking based on number of subscribers. There are a few changes to service providers like, Skype, Vonage, XO, and covad. Also some have left the list like, Skype, Vonage, XO,.

1
Comcast Digital Phone* (circuit switched customers not counted)
3,500,000
[July 27, 2007]
SEC 10-Q
2
Vonage
2,450,000
[as of June 30, 2007]
Fact Sheet
3
Time Warner Digital Phone*
2,335,000

The rest of the list available here and the history of ranking is archived here.

Published on September 18th, 2007 under , , , ,

Covad, TalkSwitch bring DIY VoIP Option for business enterprises

Source: voipcentral.org

covad_28

VoIP installation is a daunting task for the business enterprises. Various market surveys convey that a proper installation can bring effective VoIP services in a corporate networking. To avoid complex VoIP deployment process, here is a Do It Yourself option which not only eases complex VoIP deployment process but also brings effective communication in a business set-up.

US-based Covad, the leading broadband and VoIP service provider has developed the DIY (Do It Yourself) VoIP system collaborating with TalkSwitch.

The VoIP kit contains ClearEdge Integrated Access system of Covad and TalkSwitchs 480vs phone system to enables small business a better way to install their own VoIP system. It provides every normal features, services and supports to that of a VoIP Kit.

The striking feature of the DIY system is that it has the capability to handle up to 32 users for each location, so as the business expands, they need not to outgrow their phone system. Since it is self-installed, we do not need to seek vendors assistance frequently. The price starts at $459. It is now commercially available in the market.

Eric Weiss, CMO of Covad comments,

The Covad-TalkSwitch bundle enables small businesses to enjoy the benefits and reliability of a big business solution without the complexity or high cost. Small businesses are no longer forced to choose from expensive and complex enterprise systems or low-quality consumer-grade services.

Read

Published on December 8th, 2006 under , , ,

Earthlink and Covad partner to extend VoIP to 8 more Cities

Source: voipcentral.org

Earthlink has partnered with Covad to extend its VoIP services to 8 more cities in America.

Under the deal, Earthlink will give Covad $50 million in debt and equity financing which will fund the extension of Covad’s line-powered voice access service enabling the alternative offering of Earthlink DSL and Home Phone Service instead of traditional or local phone companies to 8 more cities:

1) Atlanta,
2) Chicago,
3) Los Angeles,
4) Miami,
5) New York City,
6) Philadelphia,
7) San Diego and
8) Washington, D.C.

Currently Earthlink provides DSL and Home Phone Service in:

a) Dallas,
b) San Francisco,
c) San Jose and
d) Seattle.

Om Malik says that Earthlink needs to be more aggressive and I agree as well. I also agree that this is a great move indeed by both Earthlink and Covad as it is a win-win situation for both.

Read More in TMCNet.com

Published on March 17th, 2006 under , ,

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