AT&T expands VoIP footprint

AT&T announced this week that it is expanding its initial launch of VoIP residential and small business service to new markets in California and New York, accelerating its plan to deploy IP telephony in 100 markets by the end of the year.

The VoIP product, named CallVantage, is now available in New York City, Long Island, Los Angeles, San Diego and San Francisco, adding to its original launch markets of New Jersey and San Antonio. The service works much the same as Vonage’s, using a customer’s existing broadband connection to receive and place IP phone calls. While AT&T is currently offering local phone service in most states using the unbundled network element platform, AT&T officials said they differentiate the two offerings by stressing the enhanced feature set VoIP carries.

"We think IP is the technology of the future and we think people have begun to recognize that," an AT&T spokesman said. "We also think this service will drive broadband. Many users haven’t made the jump to broadband yet. For many of them VoIP will be the justification."

AT&T is deploying the solution over its own network, using switching technology it developed into AT&T labs. While it currently offers DSL through line-splitting agreements with Covad, it has not yet offered a VoIP/DSL bundle to its customers, nor has AT&T said it plans to do so. Currently, AT&T is marketing unlimited local and long-distance calling plans for $20 a month on a promotional rate, but expects to charge around $40 for the residential service after the promotion ends.

AT&T plans to deploy the service in 100 major MSAs by year end, making the service available to one out of every five households. It is also projecting 1 million business and residential customers for the service by the end of 2005.