Vonage partners with Earthlink and becomes an ISP

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Vonage partners with Earthlink and becomes an ISP

Vonage has decided to move from their low-margin, high turnover business (VoIP) to another low-margin, high turnover business (ISPs) when they announced today that they are partnering with EarthLink's municipal wireless Internet networks. Essentially, with this partnership, Vonage is now an ISP or an OEM ISP I suppose. Isn't that grand? Talk about watering your brand, though at this point, Vonage has nothing to lose, especially considering their stock/IPO has tanked and their stock is still way down from the IPO.

According to TMCnet, Vonage, plans to sell Vonage-branded Wi-Fi Internet access through a three-year contract with EarthLink. Vonage will buy Internet access on a wholesale basis from EarthLink, one of the pioneers within the emerging municipal Wi-Fi market. The new Vonage service will be provided in all cities where EarthLink is building, owning and operating municipal wireless networks, such as Anaheim, New Orleans, and Philadelphia.

Later in 2007, Vonage plans to provide hardware, such as a wireless modem device, and other complementary software tools to customers who use the service as an alternative to DSL or cable Internet access. Vonage has also announced a partnership with frog designs inc. to create a unique design for the next generation of Vonage devices. The first to undergo redesign will be Vonage's phone routers.

Russell Shaw has more.


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