8x8 Surges on BellSouth Deal

8x8(EGHT Quote) rose 79% after signing a deal to provide BellSouth (BLS Quote) with private label Internet phone service.

Terms weren't disclosed, but the Santa Clara, Calif., company will provide technology, integration and operational services for BellSouth Digital Phone Service.

"With the introduction of BellSouth Digital Phone Service, we are broadening our portfolio of consumer services," said Martin Chandler, vice president and product management for BellSouth. "This new service is another example of our commitment to providing customers with the greatest choice when it comes to their communications and entertainment services."

BellSouth's agreement with 8x8 calls for the development of BellSouth Digital Phone Service based on 8x8's internally developed technology. This includes a suite of VoIP service components including a call-switching platform, feature servers, customer portals and consumer premise equipment.

"BellSouth's selection of 8x8 as its VoIP partner is a tremendous credit to the technology and service expertise which has made 8x8 one of the industry's leading VoIP service providers," said 8x8 CEO Bryan Martin. "Our extensive residential, business and video technology portfolio was a key component to our winning BellSouth's business. We look forward to working closely with BellSouth to offer their customers an enhanced, robust Internet phone service alternative."

Early Monday, 8x8 rose $1.28 to $3.03.