Light Reading

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?
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?