Engadget writes that Vonage (VG) may be teaming up with Earthlink (ELNK) to offer a WiFi-enabled phone that can allow VoIP calls but can switch to a cellular signal if the WiFi signal is not available.
Although the product may be the offering of two weak companies, there may well be a market for inexpensive handset service, and, the program might help get the two companies out of the mud. Earthink’s stock traded at close to $12 a year ago. Now, it is just above $7. Its transition from being an ISP to a company that builds out WiFi has been a tough one. Cities have been slow to approve widely distributed WiFi.
Vonage’s problems have been worse. The stock has dropped from $17.25 to $5.48. Despite growing revenue and smaller losses, Wall St. is concerned that the company cannot compete with cable companies that bundle VoIP service with broadband and TV.
Neither company has a good way out, but offering a joint product may be a beginning.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
