There goes the neighborhood

AT&T is testing a hosted VOIP service (via Om Malik). 

After Vint Cerf’s comments about VOIP the other day, maybe this is a
trend.  The long-distance companies know their traditional market
niche is doomed as the local Bell companies gain approval to offer
interstate service, so they are going virtual.  It will be
painful, but they can survive the VOIP transition better than the Bells
(who also will soon face a major VOIP threat from cable
operators).