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VoIP Provider Vonage Plans UK Launch |
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US VoIP Provider Vonage Plans UK Launch This Year
July 15, 2004
By Staff
The US's largest broadband telephony provider is planning to launch in the UK later this year, which could force telcos to re-price their fixed-line voice calls and broadband subscription rates.
Vonage has 170,000 active users in the US and claims to host a total of 5m calls a week. After a successful launch in Canada, the residential Voice-over-IP (VoIP) service provider is planning to expand into Europe, and intends to target the UK market before the end of 2004.
"We've always been determined to expand worldwide, specifically into countries with great broadband penetration," said Louis Holder, executive VP for product development at Vonage. "The UK will be our first country to target as it's English speaking, has well-established currency issues for billing, and has good broadband penetration and awareness."
The vonage-forum.com/vlink6.html">Vonage service lets customers choose their local dial code, which is beneficial for users receiving a majority of international calls. Nearly 200 area codes are available in the US and 14 in Canada, all of which will be available to British customers when the UK offering launches.
"The service is based on software instead of a telco switch, meaning that users don't have to change their behaviour when they make a call," said Holder. "The UK is still a fresh market to enter into as it only has VoIP trials."
UK ISPs and telcos, such as BT and AOL, already offer similar broadband telephony services, but telecoms analysts claim companies like Vonage will force them to offer cheaper voice and broadbandpackages.
"It could transform traditional pricing for PSDN public switched telephone network and broadband rental, as well as voice minutes," said Lars Godell, senior analyst at Forrester research. "At the moment you pay separately for each, but this could lead to more flat-rate calling plans."
Vonage is seeking support from a British telco partner.
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