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Vonage In The News
Vonage Expands International Presence with Investments in Asia Pacific Region

Vonage to Present at the Oppenheimer 20th Annual Technology, Internet & Communications Conference


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Salt Lake City: impressions after several months
Salt Lake City: impressions after several months

Review: My First Day With Vonage, Excellent!
Review: My First Day With Vonage, Excellent!

Great Price, No Complaints
Great Price, No Complaints

You need some common sense.
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Vonage Customer Review: One month with Vonage, and...
Vonage Customer Review: One month with Vonage, and...

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Vonage Poises For UK Marketing Splash

Vonage In Print News

Web Phone Firm Vonage Poises For UK Marketing Splash

January 18, 2005

By Kirstin Ridley

LONDON, Jan 18 (Reuters) – Vonage, the cut-price U.S. Internet telephone group, plans a British advertising blitz in April after its first European soft launch met with what it calls “absolutely great” initial customer feedback.

Throwing down the gauntlet to dominant UK telecoms operator BT Group Plc, Vonage Chief Executive and Chairman, Jeffrey Citron told Reuters his first UK customers started signing up 52 minutes after he turned on his UK website on Jan. 1.

“Typically in 90 days (of a soft launch) we follow on with strong marketing support, “ Citron said in a telephone interview from the United States on Tuesday.

“It’s what we’ve done in the U.S., it’s what we’ve done in Canada, it’s what we do when we launch in new international virtual markets and it’s what we’re doing in the UK.”

Vonage belongs to a new breed of companies using Voice over Internet Protocol (VoIP) technology, which is threatening to revolutionise the market by offering cut-price – or sometimes free – phone calls using high-speed internet connections.

Voip is more than 10 years old but has only recently started offering acceptable call quality. This has allowed Voip companies – which have no infrastructure to maintain and whose customers have already paid for high-speed Internet connections – to start eating into the market.

And Vonage is ambitious. When it comes to competitors, Citron brushes aside new Voip market entrants such as Skype Technologies. He has his sights set on BT’s vast customer base.

“Our main competitor is where most phone calls happen today. And most of the calls today happen with BT. We view them as the primary competitor in the marketplace and our goal is to get their customers to move over to Vonage, “ he said.

Vonage declined to divulge its planned UK advertising spend, noting only that it has already signed up Havas Advertising’s Arnold Worldwide to lead a $75 million global marketing charge – some of which would be dedicated to Britain.

The company offers a series of deals, including unlimited calls in the UK and Ireland for residential broadband customers, low international rates and voicemail for 9.99 pounds ($18.69) per month – as well as free Vonage-to-Vonage calls.

And the group, whose customers can access its services either via their home phone lines or computers – which need microphones and speakers – aims to more than double total customer numbers to one millions from about 400,000 by end-2005.

“There’s an enormous customer base out there that can leverage the existing infrastructure to dramatically cut their phone bill,” Citron said.

Vonage, which says it is signing up to a net 10,000 new customers per week, declined to divulge financial details. But Citron said the company was profitable before marketing expenses – a cost he expected to continue as the business grew. Citron who is keen to expand in Europe and Asia Pacific, is evaluating where to launch in next. But he said he expected to be operating in four or five countries by the end of 2005.

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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.

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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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