Vonage Could Sell Broadband

Vonage could be set to diversify into wireless Internet and broadband access, according to Business Week magazine.

The publication has fuelled speculation that the VoIP provider will move into the wider communications field after the firm announced it would start reselling other carriers' wireless services. Analysts in Business Week believe that this could be taken further and that Vonage will start offering services under its own name and with its own content. This, it said, would give the firm a better chance at being more profitable.

It continued: "Rival (Mobile Virtual Network Operators) that already use other carriers' networks to market wireless services under their own brands have been steadily making gains selling to youth and young professionals." Business Week cited Virgin Mobile USA and Helio as examples of firms that have made profits by selling wireless services under their own names.

The magazine suggested that since Vonage caters to the same market of young, early adopters of the latest technology, it could benefit from a similar strategy.

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