AT&T 2Q07 VoIP update

• Access line reduction of about 450k during the quarter. More than half VoIP substitution

• AT&T has just about every VoIP offering in the market now

• CallVantage VoBB subscribers: not more than 100k. SBC was previously reselling Deltathree offering, but decided to promote AT&T’s Callvantage after acquisition. Callvantage is based on Sylantro solution. Convedia was also a vendor. We hardly ever heard from either Sylantro or Convedia about the progress. I don’t think the subscriber base is more than 100k lines at present. At&T achieved just 53k VoIP lines in its first year of VoIP launch despite the heavy mass advertising. And don’t forget Sylantro has not been exactly proactive over the last two years now.
• But AT&T has the largest wireless VoIP deployment in the world. 2Q07 VoIP traffic is estimated at between 22 to 25 billion minutes

• What else? 11% customer of Sonus during 2Q07. That translates into about $7m worth VoIP media gateways bought from Sonus during the quarter. AT&T has been 10% customer of Sonus for several past quarters.

• 13.3 million broadband customers.