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Vonage Calling For Employees

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Vonage Calling For Employees

November 24, 2004

By Ken Tarbous

Vonage Holdings Corp. has put out the call for help.

The Edison-based Internet-telephone company is about to double its work force by adding another 600 employees to expand its business.

"We're growing very, very quickly, and we've got to hire a lot of people," Chairman and CEO Jeffrey A. Citron of Brielle said in an interview at Vonage's headquarters last week. "Hiring those people and training and scaling up our personnel is an enormous logistical challenge."

The company is fresh off a victory before the Federal Communications Commission, which ruled Internet telephone service is not bound by state regulations.

"The FCC's decision was very important for us because it allows us to make additional investments in deploying our services. We had halted our deployments for a while pending this decision," Citron said. "We just weren't sure if we were going to invest in new markets just to go take on and fight a state regulator."

The company has stepped up its expansion plans as the competition has heated up. Now, cable companies like Cablevision and Comcast are offering Internet telephone service, as are old-line phone companies like Verizon and AT&T.

Founded in January 2001, the privately held Vonage serves more than 300,000 customers in the United States and Canada, with about 80 percent residential accounts. The 34-year-old Citron founded discount brokerage Datek Online Holding Corp. in Woodbridge before starting Vonage.

"This quarter our goal is to add 100,000 customers," Citron said. "We added 82,000 customers, approximately, last quarter, and we're shooting at 100,000 this quarter."
The Voice over Internet Protocol (VoIP) telephone-service provider is creating positions across the board in customer service, software development, engineering, training and other departments, Citron said.

More than half the company's employees work in customer service in the call-center and support groups.

Technical support manager Bill Carter said the call-center employees have risen to their biggest challenge of satisfying the public's demand for Vonage services. The call center handles up to 8,000 calls per day, said Carter.
Citron declined to make any predictions on the company's future, but with the aim of signing up tens of thousands of new customers every month, Vonage could reach a half-million sometime early next year. "We don't put big stakes in the ground; we just try to go out and execute every day," he said.

The IP telephony provider offers phone service using broadband high-speed digital or Internet connections through cable TV, Internet providers like AOL or EarthLink, and telephone companies.

"You can have any flavor of broadband," Citron said, pointing to DSL and wireless connections. "There really are a lot of broadband options for consumers, and there are new options being created every day."

The adapters used to hook up phones to broadband connections including routers and modems that enable the lines for Voip calls are sold through Radio Shack, Circuit City, Best Buy, Staples and other retailers. Rebates accompanying the purchases often bring down the retail price from about $60 to $10, and Vonage also gives away the devices on its Web site, Citron said.

"We work really well with our partners in putting a wide variety of products on the store shelves to give consumers a lot of choices," he said. "The retail format is really good for that because we need that shelf space to show people the kinds of products they can buy that work with our service."

Citron dismissed any suggestion that regular folks might be put off by sophisticated and complex products or services, saying installation typically takes the consumer 15 minutes.

"I think people use 'the technology fear' too much, particularly nowadays with people so accustomed to seeing technology as part of everyday lives," he said. "Yes, 20 years ago the personal computer was a pretty scary piece of equipment; today just about every single home has a computer."

The large numbers of consumers signing up for broadband every month, seeing the realities of pricing structures, is good for Vonage's business, Citron said.

"Most people who are on the Internet and don't have broadband yet, see the cost of their phone bill and the cost of Internet service . . . find that cost in totality is more expensive than going out and getting broadband and getting Vonage."

Vonage has national flat-rate pricing regardless of where in the country the customer lives.

Residential and business packages range from $14.99 to $49.99 plus fees and taxes monthly.
For $24.99 per month, residential customers get unlimited long-distance and local calls in the United States and Canada. The $14.99 plan includes 500 minutes to anywhere in the United States and Canada.

The small-business unlimited plan is $49.99 per month. For $39.99 per month, businesses get 1,500 local and long-distance minutes.

Citron would not release sales or earnings figures but did say the company has raised $280 million in private capital.

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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 for details.

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