EarthLink's DSL Plus VoIP Offering

Currently in local trials, EarthLink's DSL plus phone service competes on features as well as price.

by Alex Goldman ISP-Planet Managing Editor [February 6, 2006]

It has been ISP-Planet's editorial position since its inception in 1999 that ISPs should compete on value, not price. Atlanta, Ga.-based EarthLink today announces its intention to do both by offering full-featured voice services to DSL subscribers, both existing and new.

EarthLink sees clear demand for the service, noting that Jupiter Research forecasts that by 2010, over 20 million U.S. household will subscribe to a VoIP-based telephony service, 18 percent of all U.S. telephony households (see U.S. Broadband Telephony Forecast, 2005 to 2010, available to Jupiter Research subscribers only).

Currently the service is in trials in the San Francisco/San Jose area, in Dallas, and in Seattle. Pricing is as follows:

• Unlimited Premium Plan: $69.95 per month for 8 Mbps downstream service as well as VoIP
  
  
• Unlimited Plan: $64.95 per month for 1.5 Mbps downstream service as well as VoIP
  
  
• Basic Plan: $49.95 per month for 1.5 Mbps downstream service with 500 minutes of local and long-distance calling

VoIP features
EarthLink is partnering with Broomfield, Colo.-based Level 3 Communications to offer voice services and with San Jose, Calif.-based Covad Communications to offer ADSL2+-based DSL.

VoIP features offered in every calling plan include:

• Blocked caller list: prevent up to 10 phone numbers from calling the subscriber. Market research still determining whether the caller will hear a fast busy signal or a message saying they've been blocked.
• Integrated address book: all contact info is stored on EarthLink's webmail servers and updates apply to both VoIP and Internet service.
• Enhanced 911 calling
• Phone number portability
• Call forwarding
• Three way calling
• *69 feature

According to Michael Doherty of Covad media relations, Covad is deploying Samsung AceMap DSLAMs that have voice as well as DSL features, allowing the user to keep their own phones. Because no customer-side ATA is required, the phone service will still work during a power outage.

Jim Bagnato, EarthLink director of voice services (since January, 2005) says that, working closely with its two partners, EarthLink can deliver quality. "We have control over the packets and over what's happening. When an analog signal reaches the CO, Covad takes those packets [on its DSLAMs] and routes them appropriately. Other services go over third party providers. We have a better degree of control over the quality of the service we offer."

Jerry Grasso, EarthLink director of corporate communications, says he expects his company's price points to appeal to all customers, not just EarthLink customers. "We are of course marketing this to existing EarthLink customers, but we are also marketing it to phone company customers. They can switch from the service they're getting and instead get the service that EarthLink is justly proud of."

— End