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Merrill Lynch: SBC/AT&T Consolidation Should Benefit VoIP Vendors

January 27, 2005

Analysts at financial advisory firm Merrill Lynch feel that an acquisition of AT&T by SBC should benefit VoIP providers. They single out Sonus in this comment issued today:

While SBC does not have a significant mass-market VoIP service, AT&T has the #2 service (called AT&T CallVantage) which competes with Vonage. The primary VoIP vendor at AT&T is Sonus Networks (Not Rated). So if SBC sees the potential in VoIP, we believe it would be better to accelerate the AT&T service deployment, which could be positive for Sonus.

AB -- 1/27/05




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