Vonage is teaming with Covad Communications Group to offer a bundle of voice-over-IP and broadband services in an effort to compete with the triple and even quadruple bundles of telecoms and cable companies. The new service is expected to be rolled out by the end of 2008.
Vonage will offer Covad DSL services with maximum download speeds of 3M bps to 6M bps for both residential and small business customers. The service will be known as Vonage Broadband.
"Consistent with our strategy of focusing on the customer, Vonage Broadband enables us to respond to the demand we hear from customers who prefer the Vonage brand," Jeffrey Citron, Vonage chairman, chief strategist and interim CEO, said in a statement. "In addition, it provides us with a competitive offering that continues to give customers the freedom of choice."
While Vonage has spent the last several years engaged in extensive and expensive legal battles over patent infringement claims, companies like AT&T and Comcast have expanded their bundles to include video, voice and broadband. In most cases, the telephone and cable company bundles require customers to order voice in order to receive a broadband connection.
Covad has enjoyed success offering commercial broadband but has made few inroads in the residential market.
"This new strategic relationship enables us to demonstrate the reliability and award-winning performance of our nationwide broadband network to Vonage's large and savvy customer base," Covad President and CEO Patrick Bennett said.