US long-distance fixed-line operator AT&T Corp has added to the optimism surrounding VoIP with the announcement that it will begin the roll-out of its consumer broadband internet telephony service in March.

The company expects to have 1 million business and consumer VoIP customers by the end of 2004. At the moment, Vonage is the leading broadband VoIP service provider in the US, with 100,000 customers. It charges $35 a month for unlimited local and long-distance calls.

The announcement was however was tempered by the news that AT&T is planning to cut 8% of its workforce, or about 4,600 jobs, this year.

The phone company told analysts it wants to transform itself into a networking company, moving data into homes and businesses over high-speed internet connections, but said first it must face declining margins in its long-distance business, which still accounts for more than half of its revenues.

It would seem as though things are heating up on the Packet Cable front in regards to actual implementation of the next version of the technology. The new version of the technology offers burstable bandwidth for specific applications like Video Conferencing. In concept it would allow a Video Conference to pull a great deal more bandwidth to provide near 30 Fps [real-time video] for this speciic purpose.

Stay tuned to hear more on this and news from the major cable providers moving towards this new standard.

-Erik

EDISON, N.J. — Vonage, the broadband phone company, today announced the activation of 100,000 total lines on its network, thus doubling its subscriber-base in less than five months since it reached 50,000 lines in service.

With the addition of more than 15,000 lines to its network during January, Vonage’s active line base has reached 100,000, further defining it as the leader in the broadband Internet telephony industry. Over the life of the service more than 130 million calls have been completed across its SIP network and call volume continues to grow at an exponential rate.

“Activating 100,000 broadband telephony lines is a milestone for Vonage and a landmark for the industry,” said Jeffrey A. Citron, chairman and CEO of Vonage. “With over 4,000 lines being added every week, the rapid influx of customers is a testament to the validity of broadband telephony and proves that consumers are ready for Vonage’s low-cost, flat-rate, feature rich residential and small business calling solutions.”