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Vonage Expands International Presence with Investments in Asia Pacific Region

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


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

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Vonage Customer Review: One month with Vonage, and...
Vonage Customer Review: One month with Vonage, and...

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There's pressure on Netphone companies to conform

Vonage In Print News

October 1, 2003
By Staff

Transcript from National Public Radio's Marketplace Show piece that ran October 1, 2003 at 6:55 AM EDT.

Click here to listen to audio clip.


The creation of the internet has changed how many of us do
some common things. Instead of shopping at the mall, for
instance, we try a dot-com. Instead of doing research at a
library, we can sit at home in our jammies and just Google
it. Instead of flirting in bars, we go to chat rooms.
Some of us even log on instead of using Ma Bell. And that,
of course, has some telecommunications regulators wondering
what to do about Internet phone companies. Jeff Horwich

JEFF HORWICH reporting:
It's not much to see, but Web designer Connell Garrity is
happy to show off his new phone system. The local phone
company paid good money to run copper wires to his
doorstep, but Garrity relies instead on a small black box
next to his computer. One line runs to the phone in his
home office, another to his broadband cable modem.
Mr. CONNELL GARRITY (Web Designer): Everything's right
here. That's my phone--my--my local phone company's right
on my desk, as far as I'm concerned. It's a very simple
set-up and you can cut the cord finally, get away from the
Baby Bells.

HORWICH: Garrity saves up to $75 a month on his phone bill
since he signed up with Vonage. The New Jersey company is
the largest independent provider of
voice-over-Internet-provider telephone service, also known
as VoIP. Voip companies send calls over the public
Internet, turning voices into packets of digital data.
Vonage officials says this makes it more like an Internet
service provider than a telephone company. The state of
Minnesota disagrees. Burl Haar of the state's Public
Utilities Commission says Vonage needs to pay the same fees
and play by the same rules as any telephone service

Mr. BURL HAAR (Minnesota Public Utilities Commission):
Basically the commission has told them that they need to
obtain certification as a telephone company. If they're
saying they're not going to do that, then they'll be in
violation of a commission order.

HORWICH: The Federal Communications Commission could help
clear things up, but it won't, at least not for a while. A
spokesman says the agency is closely monitoring the Voip
situation but it's got other big issues on its plate. The
result is commercial chaos. Individual phone companies
decide what access fees to charge when Voip companies pass
calls on to them. Companies disagree about something as
basic as where a call comes from. For instance, if a call
from Los Angeles to Atlanta actually rides the Internet as
far as New Jersey, did it originate in LA or New Jersey?
Separate states are forming their own approaches to VoIP.
Florida has signaled it will leave Voip companies alone.
But at least half a dozen others have signaled their
intention to regulate, as Minnesota has.

Mr. JOHN REGO (Vonage Chief Financial Officer): Well,
what Minnesota did is they utilized the traditional legal
argument of `If it quacks like a duck, it is a duck.' And
we at Vonage believe it's not quite that simple.

HORWICH: Vonage chief financial officer John Rego spoke
from the company's New Jersey headquarters over a Vonage
Internet phone connection.

Mr. REGO: We think that it's a nascent industry with a
nascent technology and we think that it needs to be
afforded the luxury of growing up a little bit before we
come in and worry about how to regulate it.

HORWICH: Rego wants Minnesota and the FCC to leave the
company and its customers alone for at least five years.

That may be all Vonage needs to move from upstart to
mainstream. A recent marketing study reports the number of
US Voip users will quintuple to five million in the next
four years. In St. Paul, I'm Jeff Horwich for

GLASER: And in Los Angeles, I'm Cheryl Glaser. Thanks for
being with us.

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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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