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Hard Wiring - Installation
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Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2013 Results

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Vonage, Wireless Carrier To Sell Together


Vonage In Print News

Vonage, Wireless Carrier To Sell Together

August 3, 2005

By Stephen Lawson

A provider of high-speed wireless service to businesses in several U.S. cities is now selling Vonage Holdings Corp. Voip (voice over Internet Protocol) service along with its data connections.

A deal announced Tuesday between fixed-wireless provider TowerStream Corp. and Vonage Marketing, a unit of Vonage Holdings, is intended to make it easier for businesses to completely bypass traditional carriers for both data and phone service.

The partnership represents an alliance of upstarts against the incumbent telecommunications carriers, which traditionally have brought in a lot of their revenue and profit from voice services and T-1 lines sold to businesses. Voip services such as Vonage are now making steady inroads against the traditional carriers through low prices and new features. Wireless broadband, which has been mostly a proprietary niche technology, may become less expensive and more common following standardization around the WiMax specifications starting later this year.

Middletown, Rhode Island-based TowerStream has fixed wireless networks in parts of New York, Los Angeles, Chicago, San Francisco, Boston and the Providence, Rhode Island, area. Its customers can get anything from 500K bps (bits per second) to hundreds of megabits per second of bandwidth, said Jeff Thompson, founder, president and chief operating officer. Equipment at the customer's location communicates with a base station five miles (8 kilometers) to 10 miles away, he said. Because it doesn't require wires, TowerStream doesn't have to lay fiber or lease capacity on a carrier's local "last-mile" network in order to reach subscribers.

TowerStream's service is priced starting at US$350 per month; the company offers a 1.5M bps service for $500 per month as an alternative to carrier T-1 lines. There is also a $500 setup fee. TowerStream owns the customer premises equipment.

TowerStream customers have already been able to use Vonage over their fixed-wireless data connections, but now they can buy the two services as a package. A typical subscriber to the 1.5M bps service could get four Voip lines for $100 per month, Thompson said. TowerStream will install and test an ATA (analog terminal adapter) that Vonage will sell to the customer.

In its networks, TowerStream uses a pre-standard version of WiMax technology. The Aperto Networks Inc. equipment it uses allows TowerStream to give Voip packets priority on the "last mile" from the base station to the customer's site, ensuring high-quality calls, Thompson said. The company also is using pre-standard WiMax gear from Alvarion Ltd. alongside the Aperto equipment and is studying its quality-of-service features. Following interoperability tests by the WiMax Forum industry group, certified WiMax products should all have the same quality-of-service capabilities, Thompson said.



 
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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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