8x8 changed its focus from consumer VOIP to business VOIP in December 2006. One and one-half years or 6 quarters later, 56% of its revenue is from Businesses. 8x8 has been buying some of its growth.
8x8 Inc. signed a deal with Minneapolis-based unified-communications (UC) solutions provider Avtex LLC, under which it will take over the iTELConnect hosted PBX and unified- messaging subscriber base of approximately 1,500 companies.... [telecomweb]
This acquisition means that Packet8 will serve 13,500 businesses. That's one of the largest. Of course, cablecos are just getting into the Hosted PBX game for business telephony. Bright House is rolling out a 2-line Digital Voice with Internet, email, back-up and security for $139.
According to Andy at VOIP Watch, CableVision has 2 million voice lines now. Because they are focused in NY and fairly dense, they have had an advantage. VZ has just started selling FiOS triple-play in this region. CableVision is launching a wireless network in the Greater NY area to counter the FiOS marketing machine.
Comcast added 555k new voice lines in 2Q, according to Forbes.
Back to Packet8. It's average business customer takes 7.1 lines, less than the standard 8 lines that CLEC's offer on an Integrated T1. The average spend (ARPU) is $237 which is $33.38 per line. Churn is 3.5% this quarter down from 4.6% last year. It's Overlay VOIP and it is played on price. Tough to have QOS with this model. That's why I say Milk Your Own Cows. I wonder how many businesses they have in Santa Clara?