& cplSiteName &

BellSouth Deal Boosts 8x8

Light Reading
News Analysis
Light Reading
12/12/2005
50%
50%

8x8 Inc. (Nasdaq: EGHT) shares jumped 43 percent Friday on news that BellSouth Corp. (NYSE: BLS) is reselling a version of the company's Packet8 VOIP service. (See BellSouth Launches Residential VOIP.)

Light Reading broke the news hours before the company's official announcement. (See Does VOIP Business Add Up?.) And after confirming our story, 8x8's stock jumped again after hours.

8x8 shares were up 0.5227 (42.84%) to $1.74 in trading Friday, but then they rocketed up $1.28 (73.29%) to $3.02 in after hours trading.

"8x8 has always been a volatile stock," 8x8 CEO Bryan Martin told Light Reading during a phone call after market close Friday. "But I think people know that the big phone companies do a significant amount of testing and validating of any technology they are going to work with, so people tend to speculate that they are buying stock in a recognized brand."

8x8’s stock price has ranged from $1.03 to $4.47 during the past year.

Under its agreement, 8x8's Packet8 service will be rebranded and sold as "BellSouth Digital Phone Service" on the BellSouth Website and through various other channels.

And that BellSouth name adds a premium. 8x8's Packet8 Freedom Unlimited plan, with unlimited local and long distance calling to the U.S. and Canada, costs $19.95 a month. But BellSouth customers will initially pay $29.95 a month for BellSouth's rebranded version. (See 8X8 Intros VOIP Plan .)

"What you're getting for that 10 bucks extra is the BellSouth brand," Martin says. "I think they think they can get $30 per month." Martin adds that the BellSouth service includes some minor features that have not yet been added to the version of the product available directly from 8x8.

Martin says his company now has more than 100,000 VOIP lines in service, most of which are residential lines, while 15 percent are for enterprise customers. Ten percent of the lines, he says, are being used for the company's videophone service.

Martin says 8x8 has received projections from BellSouth on how many of the carrier's subscribers are expected to buy Packet8 service, but says he is "not at liberty" to disclose the numbers. (See Insider Sees VOIP Battle Royal.)

8x8 has been in business under several different names since 1987, selling everything from programmable semiconductors to consumer videophones. The company is headquartered in Santa Clara, California.

— Mark Sullivan, Reporter, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Mark Sullivan
50%
50%
Mark Sullivan,
User Rank: Light Beer
12/5/2012 | 2:51:06 AM
re: BellSouth Deal Boosts 8x8
Suprising leap up in value over the weekend for the 8X8 stock. Is this value sustainable given the immediate new revenue recognition from the Bell South arrangement? Shouldn't be, because the BellSouth business will disappear as quickly as it came, once the carrier builds its own service.
voyce_overipee
50%
50%
voyce_overipee,
User Rank: Light Beer
12/5/2012 | 2:51:04 AM
re: BellSouth Deal Boosts 8x8
Is this value sustainable given the immediate new revenue recognition from the Bell South arrangement? Shouldn't be, because the BellSouth business will disappear as quickly as it came, once the carrier builds its own service.

If you belive BSouth can build their own anytime soon. Plan B if they can't make it work themselves could be to buy 8x8, and then their stock is worth it. A gamble, but isn't that the definition of buying stock?
From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
The Urgency of Commercial 5G Services

4|26|17   |     |   (0) comments


The progress of 5G has been closely monitored in the industry. At the 2017 Brooklyn 5G Summit, the sense of urgency for a commercial 5G launch had started to surface among operators.
Women in Comms Introduction Videos
How Diversity Helps Comcast Mirror Its Customer Base

4|26|17   |   2:55   |   (0) comments


Diversity brings innovation, creative ideas and a way to reflect the broad spectrum of your customer base, Comcast Director of Customer Experience Jenelle Champlin says.
LRTV Huawei Video Resource Center
Mobile Operators & Video

4|25|17   |     |   (0) comments


Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom, for a discussion of what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Surprise! AT&T Markets 4G Advances as '5G Evolution'
Dan Jones, Mobile Editor, 4/25/2017
Did Verizon Outbid AT&T for Straight Path?
Dan Jones, Mobile Editor, 4/25/2017
First Year TIPs the Scale Toward Success
Denise Culver, 4/24/2017
Verizon: Small Biz in Cybercrooks' Crosshairs
Carol Wilson, Editor-at-large, 4/27/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.