Vonage to Try an "EarthLink"?

Vonage says it will start offering wireless services to subscribers during the second half of 2007, after announcing it would support dual mode phones working over Wi-Fi connections. The company also expects to announce new agreements to resell other carriers' broadband Internet access services, as well as new content deals later this year, sources say. That will make Vonage into something resembling an EarthLink.

Even residential video services, in some markets, might be offered. Though margin will be an issue, as it always is with resale, the moves will address the average revenue per unit problem Vonage has. Namely, its cost of acquiring a new customer is in line with what a cable company, at&t or Verizon would expect, but the monthly revenue is far below what those other providers typically get.