AT&T Sets Aggressive VOIP Target

Plans to take on Vonage with voice over broadband and have 1M VOIP customers by end of next year

February 25, 2004

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AT&T Corp. (NYSE: T) laid out its VOIP plans today, setting itself a target of 1 million VOIP service users by the end of next year.

The carrier's VOIPmaster general, Cathy Martine, spelled out the operator's plan during an analyst conference (see AT&T Outlines Strategy to Investors). The company is to launch the service to consumers and businesses in 100 markets around the U.S. before the end of 2004.

The residential service, which will be available to broadband users, is called AT&T CallVantage and will be launched next month. Martine did not outline any price plans.

AT&T has been building up to this launch for the past few months, adding Sonus Networks Inc. (Nasdaq: SONS)softswitches to its network, running a trial service, and working to add emergency call features to its service (see AT&T Adds 911 to VOIP and AT&T Makes VOIP Plans).

The national carrier will not be the only major operator peddling VOIP to the masses this year, as the RBOCs are also gearing up to take the service mainstream (see RBOC VOIP Coming in 2004).

— Ray Le Maistre, International Editor, Boardwatch

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