Light Reading

BellSouth Deal Boosts 8x8

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

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
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?
Flash Poll
LRTV Custom TV
Optimizing SDN & NFV Architectures Through Application Awareness

4|23|14   |   6:24   |   (0) comments


Jerome Tollet, CTO at Qosmos, explains how network equipment vendors and operators deploying SDN and NFV can take advantage of network intelligence delivered by DPI to strengthen products and services.
LRTV Custom TV
Wind River Demonstrates Carrier-Grade Software for NFV

4|22|14   |   5:00   |   (0) comments


Wind River VP of Product Management, Glenn Seiler, takes a look the industry's first and only complete NFV software platform designed specifically for the unique carrier-grade and high-performance needs of telecom networks.
LRTV Documentaries
Cable Eyes Big Technology Shifts

4|16|14   |   03:02   |   (4) comments


US cable engineers are facing a lot of heavy lifting in the coming years, notes Light Reading Cable/Video Practice Leader Alan Breznick.
LRTV Custom TV
Maximizing Customer Experience & Assuring Service Delivery in an IP World

4|15|14   |   4:57   |   (0) comments


Steven Shalita, VP of Marketing, NetScout Systems, Inc., discusses the challenges cable/MSO operators face in assuring the delivery of new IP-based services. Key points include the value of proactively managing performance, and using rich analytics and operational intelligence to better understand service and usage trends, make smarter business decisions and ...
LRTV Documentaries
Bye-Bye DVD: Consumers Embrace Digital Video

4|10|14   |   04:17   |   (7) comments


Veteran video analyst Colin Dixon, founder and principal analyst of nScreenMedia, says research shows 56% are using digital video already.
LRTV Documentaries
Video: TW Cable Puts Multicast Gateways to the Test

4|8|14   |   04:13   |   (1) comment


Tom Gonder, a chief architect at Time Warner Cable, explains how its trial of multicast gateways is impacting IP-based video plans.
LRTV Custom TV
Managing & Monetizing Big Data in Operator Environments

4|7|14   |     |   (1) comment


At Mobile World Congress, Gigamon's Director of Service Provider Solutions, Andy Huckridge, and Heavy Reading Analyst Sarah Wallace discuss the 'big data' issues facing carriers and operators today.
LRTV Huawei Video Resource Center
Data Center Energy – Build Your Data Center in a Modular Way

4|7|14   |   2:13   |   (0) comments


Dr. Fang Liangzhou, VP Network Energy Product Line, shared his thoughts about the challenges for data centers during CeBIT 2014.
LRTV Huawei Video Resource Center
Agile Network Solution – An Overview of Huawei's Agile Network Solution

4|7|14   |   2:31   |   (0) comments


Ajay Gupta, Director of Product Marketing, Networking Product Line, gives an overview of the Agile Network Solutions during CeBIT 2014.
LRTV Huawei Video Resource Center
Huawei’s eLTE Voice Trunking, Video and Data Applied for Railways

4|7|14   |   1:38   |   (0) comments


Gottfried Winter is the Sales Director at Funkwerk, a German specialist in GSM-r terminals and a long-time partner of Huawei. At CeBIT 2014, Winter talks to Light Reading about this partnership and the integration of enhanced voice trunking, video and data functions.
LRTV Huawei Video Resource Center
LeaseWeb Speaks Highly of Huawei's Datacenter Products

4|7|14   |   1:37   |   (0) comments


Rene Olde Olthof, Operations Director LeaseWeb, talks about the next data center transformation during CeBIT 2014.
LRTV Documentaries
Comcast: Reshaping the Cable Network Architecture

4|3|14   |   07:11   |   (8) comments


Shamim Akhtar, Comcast's architect and senior director of network strategy, explains why the cable company is moving to a more distributed network architecture.
Today's Cartoon
Hot Topics
WhatsApp Threatens Carrier VoLTE
Sarah Reedy, Senior Editor, 4/18/2014
The Hungry, Hungry Cloud
Dan Jones, Mobile Editor, 4/22/2014
Who's Ready to Play Broadband?
Carol Wilson, Editor-at-large, 4/21/2014
What's the Magic of Private Equity?
Carolyn Mathas, 4/22/2014
AT&T Turns Up Gig Heat in 21 New Metros
Dan Jones, Mobile Editor, 4/21/2014
Like Us on Facebook
Twitter Feed