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EarthLink, Covad to offer ‘line-powered’ VoIP service

EarthLink with Covad Communications will offer VoIP service in Dallas, Seattle and the San Francisco-San Jose area starting this week by bundling the new service with DSL and not cable. The “line-powered” service does not require consumers to add any new hardware. As EarthLink does not own its own network like the telcos and cablecos, it puts the ISP at a disadvantage. During the third quarter of 2005, EarthLink experienced a churn rate of 5.6 percent from its narrowband customers. In addition, the recent federal regulation prevented cable companies and DSL providers from sharing their infrastructure with competitors such as EarthLink. This move is the ISP’s strategy to reduce reliance on its dial-up business and concentrate on voice and other services.


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