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AT&T teams with cable operators to provide VoIP

Posted: 24 Aug 2004 ?? ?Print Version ?Bookmark and Share

Keywords:cable service? voip? callvantage? internet phone service? cable?

AT&T is teaming up with cable service providers to deliver VoIP service to consumers.

It will push the initiative by sending out about 5 million brochures promoting its CallVantage Internet phone service with links to cable, the company said.

The AT&T leaflets direct consumers interested in VoIP to call AT&T, which then attempts to link the consumers with a cable provider. VoIP operates most effectively with a broadband connection like cable or DSL. The cable broadband providers linked to AT&T in the VoIP arrangement include Comcast Corp., Cox Communications, and Time Warner. In addition, AT&T has had a longtime relationship with Covad Communications with the latter providing DSL broadband for AT&T consumers.

AT&T has been rolling out CallVantage on a national basis in recent months after it lost a long battle to obtain rates to connect to the regional Bells' local networks that would enable the long distance provider to make what it said was an acceptable profit.

AT&T's new approach could pose a problem with cable providers down the road: AT&T's CallVantage is offered at about $20 for six months and that price is substantially lower than the price cable providers are charging for their versions of VoIP.


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