AT&T Eyes Vonage Customers, Takes on Verizon and Qwest with CallVantage Softphone VoIP Expansion

By Mae Kowalke

TMCnet Associate Editor

 

To relatively little fanfare, AT&T (News - Alert) last September launched a computer-based phone service (aka softphone) called CallVantage Softphone. The service was introduced in two forms: stand-alone, and bundled with existing CallVantage accounts.

 

AT&T worked with CounterPath Solutions (News - Alert) to develop the SIP-based CallVantage Softphone service, which lets users make and receive calls using an Internet-connected computer. Initial pricing provided two options: 300 U.S./Canada/Puerto Rico minutes for $10.99 per month, or unlimited minutes for $19.99 per month.

 

In February, AT&T expanded the scope of CallVantage Softphone further by offering rate discounts of up to 75 percent for international calls carried out using the service. The cheap rates included calls to the U.K., Greece, Beijing and Germany for 2 cents per minute; Mexico City for 3 cents per minute, and New Delhi for 11 cents per minute.

 

A USA Today report out Tuesday indicated that AT&T is now beefing up the impact of CallVantage Softphone even further by bundling it with the company’s cell phone service as part of three-month trial packages. Not only that, but this offering is being launched in two key markets: Portland, Oregon (competing with offerings from Verizon (News - Alert)) and central New Jersey (taking on Qwest).

 

Given the shaky status of Vonage, arguably the most recognizable name in consumer VoIP services, AT&T’s move to compete with other Internet phone offerings can be seen as a step toward filling a potential, looming void left if Vonage (News - Alert) is forced out of business. Recent figures from Vonage indicate that the company serves 2.4 million subscriber lines.

 

The USA Today report pointed out that, generally speaking, the big phone service providers have tended in the past to not actively compete for customers in the same market due to the expense of installing new wires—but the comparatively low cost of rolling out VoIP is changing the equation.

 

Ladies and gentlemen, start your engines. A new competition over VoIP customers is about to begin.

 

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