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Vonage In The News
Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2013 Results

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Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review
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Salt Lake City: impressions after several months




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Vonage In Print News

Vonage Targets BT In Price-Cutting WI-FI Internet Assault On Europe

August 22, 2004

By Tony Glover

North American internet phone company Vonage is preparing an assault on the European telecoms sector with the UK as its bridgehead. It will undercut BT by using broadband to provide low-cost phone services.

Vonage is winning 1,000 customers a day from US telecoms giant such as AT&T. Once it has started to win market share from UK operators such as BT, Vonage plans to take on European telecoms giants such as Deutsche Telekom and France Telecom, before challenging mobile operators like Vodafone by offering cheap wireless voice calls over the internet.

Louis Holder, Vonage's executive vice president for product development, told The Business: "In the US we charge between $ 15 (£8.25, E12.15) and $ 30 a month for our service as opposed to the average phone bill of $ 72 a month. All North American calls are free and even calling long distance from New York to London cost only 3 cents a minute. Our pricing structure for the UK will be similar."

All the consumer needs is a broadband internet connection. Vonage supplies a small black box that slots into the connection while allowing the user broadband access for his PC. The black box works with any normal fixed-line phone.

"The UK is the first logical choice for our service as it has a broadband-savvy population, but we intend to start rolling out the services to other European markets in 2005," said Holder.

Vonage will be competing with internet voice services such as BT Communicator. But while BT's service uses the internet for voice calls from a PC, BT still bills the user as though they were making a regular phone call, although calls home from overseas can be made at a cheaper rate.

Vonage is about to offer a service in the US that it intends to introduce to the UK and then Europe - wireless internet voice calls.

The company has commissioned Far Eastern manufacturers to produce mobile phones using wi-fi - the low radius wireless internet technology - to enable customers to make free and low-cost mobile calls over the internet from home as well as from wi-fi hotspots in locations such as coffee shops, hotels and airports.

According to one industry source, the growth of wi-fi will pose a threat to the mobile operators' revenues as business users realise they can use the handsets supplied by companies like Vonage to make virtually free international calls from wi-fi enabled hotels, airports and coffee shops rather than pay the mobile operators' high international roaming charges.

Vonage also believes the rollout of next-generation wi-fi networks, known as wi-max, will further adversely affect the mobile operators by giving consumers greater access to internet voice services from mobiles.

Wi-max is a wide-radius version of wi-fi. It has the backing of big IT players such as giant US chipmaker Intel. It will be introduced in high-density urban areas to provide mobile wi-fi access. Despite the claims of mobile operators such as Vodafone that wi-max will merely enhance the 3G, Vonage plans to use wi-max to offer cut-price national and international mobile voice calls.



 
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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

** Certain call types excluded.

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