Maybe this will put those baseless rumors of BellSouth buying Vonage to rest. The Atlanta-based bell operating company has teamed up with 8×8 Inc and will use Packet8 as a “private label provider” for its BellSouth Digital Phone service. Andy had alluded to this deal earlier. Expectedly, 8×8 stock is up 21.65% for the day. As part of the deal, BellSouth will market the service to its Fast Access broadband customers. I am not sure, what is the long term status of this service, since BellSouth is working with Lucent Technologies and developing its own VoIP offering, that also proposes to link-up BellSouth-and-Cingular in a more meaningful way.
By the way, BellSouth is going to sell this service for $29.95 a month. You can get the same service, from who else, from 8×8 for $10 cheaper.