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AT&T Buy Vonage? Get Serious.

September 2, 2009
by Eric Savitz
Blogger and Columnist, Barron's, Tech Trader Daily

Eric Savitz

In the latest, weirdest twist to the crazy trading in Vonage (VG), there apparently are rumors that the company could be acquired by AT&T (T). That just might be the dumbest rumor I’ve ever heard.

For starters, AT&T a few years ago started its own voice over IP service called CallVantage–but quietly shut down the service earlier this year. True, AT&T and other telcos have been seeing a rapid fall in their residential land lines. But that has more to do with people substituting wireless phones for landlines than it does with the invasion of voice over IP services.

Auriga USA analyst Chandan Sarkar this morning took a look at the theoretical combination, and finds the concept lacking.

Read the rest of this post on the original site

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