Vonage Sues AT&T

Vonage Holding and AT&T aren't only battling each other for VOIP users. Vonage is also fighting the Bedminster, New Jersey, operator over the name of its new VOIP service, it emerged this week.

Vonage filed a trademark suit against AT&T last week, claiming that the name of the company's just unveiled CallVantage Service too closely resembles its own.

The suit, filed in the U.S. District Court for the District of New Jersey, seeks to halt AT&T from using the CallVantage name and asks for damages, according to court documents.

AT&T launched its VOIP service in areas of Texas and New Jersey earlier this week.

Direct Competition

The move puts the operator in direct competition with Vonage, which claims to be one of the fastest growing U.S. providers of residential phone service offered over high-speed Internet connections. The privately-held Edison, New Jersey, company currently claims over 125,000 active lines and offers service in 100 U.S. markets.

In fact, not to be outshined by AT&T's move earlier this week, Vonage said this week that it would be offering a Wi-Fi based VOIP phone later this year.

A representative for AT&T in Europe declined to comment on the suit, saying it was a U.S. matter. Vonage representatives in the U.S. weren't available to comment early Wednesday.