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Review: My First Day With Vonage, Excellent!
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TowerStream, Vonage Team To Cut Out LECs


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TowerStream, Vonage Team To Cut Out LECs

August 2, 2005

By TowerStream, Vonage Team To Cut Out LECs

Voip provider Vonage and wireless broadband house TowerStream have teamed to offer TowerStream's business customers Voip service, with the marketing cry being the elimination of any need for traditional local exchange carriers at all. Under the pact, TowerStream will hawk Vonage business Voip service to the roughly 1,000 companies that buy wireless broadband service from TowerStream - which these days touts it's offering as being "pre-WiMax."

TowerStream customers always were able, of course, to sign up for Voip services from Vonage or from some other carrier, because all that takes is a broadband connection of any kind. What Vonage now gets is the marketing value of TowerStream selling its service directly. Terms of the business arrangement between the two were not disclosed.

The most significant aspect, though, was outlined by a Vonage spokesman who called the deal "an alliance that completely cuts out the incumbent phone companies for Internet and phone service." (The TowerStream wireless service, currently offered in New York City; Los Angeles; Chicago; San Francisco; greater Boston; and the Providence and Newport, R.I. areas connects directly to the Internet backbone, without touching a phone-company network.)

"TowerStream and Vonage both represent alternatives to the legacy telephone networks, offering better features at a substantially lower cost," said Jeff Thompson, COO of TowerStream, in a prepared statement. "This collaboration will serve as the clearest example of the symbiotic relationship between Voip and wireless broadband over the last mile."

The deal continues a collaboration between TowerStream and Vonage that was disclosed in March, when TowerStream named Vonage as one of the companies with which it was working in trials of Voip service with handoff across Wi-Fi access points and pre-WiMAX base stations to create a cellular-like service (TelecomWeb news break, March 28). Those trials, first started in Rhode Island, currently are continuing in New York City. So far, there has been no indication that such a service is included in the marketing pact just announced.

Vonage and TowerStream even managed to find a showcase VoIP/wireless broadband deployment to tout in their announcement - indeed, one that had signed up for Vonage long ago.

"We have been using Vonage over TowerStream's fixed wireless broadband for the past year and have been delighted with both the superior call quality and reliability of the connection," says J.P. Maxwell, president of Tipit Communications in Brooklyn, New York. "We initially turned to TowerStream to help alleviate a latency problem, and we are now receiving up to five megabits per second, which easily supports our voice and data for less than the cost of a landline T1."



 
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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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