Wednesday, 10 January 2007

Vonage to Resell EarthLink Wireless Net Service

Vonage, a provider of broadband telephone service, has inked a three-year contract with EarthLink to offer its customers Wi-Fi Internet access in select cities throughout the United States.

The deal allows Vonage to buy Internet access on a wholesale basis from EarthLink. Vonage will then sell its own Wi-Fi Internet service to consumers under the Vonage brand.

"Giving Vonage customers greater access to affordable, high-speed Internet access makes great sense, and is another way we are working to improve the Vonage customer experience," said Mike Snyder, CEO of Vonage.

Analysts, however, see other reasons for the deal. They believe that EarthLink were left with no choice.As part of any agreement to build a Wi-Fi network, cities often require companies to open any network to all. EarthLink may also be working with Vonage because"they need people to fill up their network," In-Stat analyst Daryl Schoolar said.