AT&T CallVantage One Step Closer to Oblivion

As I predicted on July 3rd, AT&T would soon be dropping its CallVantage broadband VoIP service since they dropped their affiliate marketing channel.

Well, today I learned that AT&T is no longer accepting ANY new orders from ANY source - affiliate or otherwise. The slow death of CallVantage is a bit sad, but it isn't particularly surprising, not only because they dropped the affiliate channel last month but as I have previously indicated, AT&T is heavily promoting their U-Verse fiber-to-copper hybrid service that combines IPTV, data, and U-Verse Voice (in select areas).

It seems a little early to cut the cord on acquiring new Callvantage customers since neither U-Verse or U-Verse Voice are available in most of the country - including my neighborhood where it was promised for this summer. I would think they would want to acquire these customers on CallVantage and then easily port them over to U-Verse when it becomes available in their area. It is much easier and less expensive to retain an existing customer than acquire a new one. But perhaps CallVantage was burning money and wasn't profitable? Unlikely since there isn't a lot of overhead in offering VoIP, especially since AT&T has a vast network they already pay for. My guess is that internal politics played a role more than profitability. It's too bad. Callvantage has some cool features that other broadband VoIP players didn't have. Could be good news for Vonage, Packet8 and the rest - one less single-play provider...

Check out the announcement made on their website:

Thank you for your interest in AT&T CallVantage® service. Currently we are not accepting new orders for AT&T CallVantage service. We will continue to evaluate our AT&T CallVantage service and remain committed to providing leading, next generation voice services for today's consumer and business customers. For information on other AT&T products and service please visit www.att.com