Nemertes Impact Analysis

The Impact Analysis is a weekly quick-take on breaking IT news.
Nemertes provides expert insight on how recent IT news affects you.
 

AT&T Pulls the Plug on CallVantage

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AT&T (NYSE:T) will no longer sell CallVantage stand-alone VOIP service.
For now, it will continue to support existing consumer and SMB customers. It
stopped actively marketing the service about a year ago, and in January launched
AT&T U-verse Voice for the same market. The IP Multimedia Subsystem-based
service integrates AT&T wireline and wireless voice, broadband, and TV
services. It also offers AT&T Voice DNA, a hosted solution for SMBs.

According to the Nemertes' benchmark, Advanced Communication Services,
20% of SMBs plan to use a hosted VOIP solution and of those, around 17% plan
to purchase the service from their carrier.

Impacts:

Enterprises (SMBs): Pure-play VOIP offerings may be going away. It's time to
evaluate bundled offerings from carriers.

Vendors: SMBs still represent a huge growth area for VOIP. As more consider
UC applications, they will move away from stand alone VOIP offerings.

Investors: Watch for market share to decline for pure-play VOIP services such
as, Packet8 (NASDAQ:EGHT), and Vonage (NYSE:VG) as more carriers offer bundled
solutions.

Katherine Trost, Research Analyst

http://www.nemertes.com/benchmarks/nemertes_benchmark_advances_communications_services
http://www.networkworld.com/newsletters/converg/2008/082508converge1.html?hpg1=bn