Vonage and Covad Communications announced a strategic relationship which will enable Vonage to provide its customers with a broadband solution using Covad's nationwide DSL network. The new service, called Vonage Broadband, is expected to be offered to new and existing customers by the end of the year.

Through the deal with Covad, Vonage will offer DSL services with maximum download speeds of 3.0 or 6.0 Mbps to both residential and small business customers.

Vonage no doubt hopes it’s new double-play offer will help boost its number of lines in service, slow churn and re-energize growth rates. Vonage added 30,000 new subscribers in the first quarter of 2008 after adding 56,000 in the previous quarter and 160,000 in the same quarter a year ago. The company is experiencing a churn rate of 3.3% per month.