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Motorola Broadband and Vonage Team to Simplify Broadband Telephony for Consumers

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Leading provider of consumer broadband solutions will provide leader in broadband telephony service with Voip solutions that make it easy for customers to connect with each other.

HORSHAM, Pa. and EDISON, NJ – 8 Dec. 2003 – Motorola, Inc. (NYSE:MOT) Broadband Communications Sector, the leading provider of cable modems purchased at retail, and Vonage, the leading provider of broadband telephony services, today announced a partnership to simplify telephony for consumers and small businesses. Going forward, Motorola will serve as the exclusive provider of voice terminal adapters to be used with Vonage’s market-leading Internet-based telephone service.

The combination of the Motorola VT1000v series voice terminal with the Vonage broadband phone service enables consumers and small businesses in North America to easily set up a high-quality, feature-rich phone service through their broadband connections (cable or DSL) – at a substantial savings over traditional offerings. As subscribers embrace voice services over broadband, this combined Motorola-Vonage solution presents retailers with an opportunity to increase store traffic and establish ongoing relationships with customers.

Today, over 20 million U.S. households have broadband access – a figure expected to grow to 60 million by 2007 according to an October 2002 Forrester Research study. As high-speed connections become more prevalent, Vonage’s service will offer more consumers a viable choice for their voice service. By partnering with Vonage, cable operators can speed their plans to bring telephony services to their subscribers. With more than 2,500 lines being added to its network every week, Vonage’s base has surpassed 75,000 active lines – logging more than three million calls per week.

“Motorola’s leadership in creating broadband-enabled home electronics products, strong retail presence, and brand recognition position the company as an ideal partner for Vonage as we expand our service,” said Jeffrey Citron, chairman and CEO of Vonage. “This partnership enables us to offer Motorola’s consumer-friendly, feature-rich voice terminal technologies – a simple way for consumers to benefit from Vonage’s attractively priced, tiered calling plans.”

“Motorola’s ‘connected home’ strategy is about bringing people together with information and entertainment – when and where they want it. With Internet telephony services like Vonage becoming an attractive alternative to traditional options, Motorola can now enable another option through retail that consumers can use to stay connected to friends and family.” said John Burke, Motorola corporate vice president and general manager, consumer solutions business. “The combined innovations of two market leaders –Vonage in telephony service, and Motorola in consumer broadband solutions – will demystify voice-over-IP (VoIP) and make it easy for customers to start realizing the benefits of broadband voice.”

This news closely follows Vonage’s 1 Dec. 2003 announcement of a new Residential Basic Plan, heralded as the most cost-effective telephony option for low-usage households to date. This new Residential Basic Plan offers 500 minutes of local, toll and long-distance calling throughout the United States and Canada for $14.99/month. It is part of a tiered family of rate plans offered by Vonage for residential and small business customers interested in taking advantage of the Motorola-Vonage telephony solution.

These service plans include:

  • Residential Premium Unlimited Plan - $34.99/month for unlimited calling throughout the United States and Canada.
  • Residential Unlimited Local Plan - $24.99/month for unlimited local calling plus 500 minutes of United States long distance and Canadian calling.
  • Small Business Unlimited Plan - $49.99/month for unlimited calling throughout the United States and Canada, including a free dedicated fax line.
  • Small Business Basic Plan - $39.99/month for 1500 minutes of calling throughout the United States and Canada, including a free dedicated fax line.
  • Services and hardware included for free in all Vonage Digital VoiceTM plans:

These packages include the Motorola VT1000v and the following services: voicemail; caller ID; call waiting; call forwarding; call transfer; call hunt; call return (*69); caller ID block (*67); repeat dialing; area code selection; international call block; bandwidth saver; Web-based account management; voicemail retrieval and real-time inbound/outbound calling activity; and international calling at significantly reduced rates.

About the Motorola VT1000v

The Motorola VT1000v series voice terminal enables broadband subscribers to make phone calls over the Internet through their Voip service provider using a traditional analog phone. The Motorola VT1000v initiates calls using Session Initiation Protocol (SIP) and supports multiple codecs to optimize performance. The Motorola VT1000v supports up to two telephone lines and contains two Ethernet ports, one to connect to the subscriber’s broadband modem (cable or DSL) and another to connect to a home computer. The product is compatible with cable or DSL modems, and supports all basic call features and fax as well as a wide range of advanced features including three-way calling, caller ID, call forwarding, and voicemail messaging.

Unique product features of the VT1000v series voice terminal that improve the consumer experience for broadband telephone service are its embedded routing functionality and voice traffic prioritization. With NAT/DHCP routing functionality, consumers need not purchase a router to install and use the VT1000v enabling easier installation and lower costs than other solutions. The device is easily installed into broadband subscribers’ homes, with or without a home network. The VT1000v also is able to identify and prioritize IP packets carrying voice traffic, as compared to pure data traffic, to improve voice quality. This feature enables consumers to talk on the phone while surfing the Web without comprising call quality – a situation that could arise during large data transfers on the upstream side of a broadband network.

About Vonage

Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in the US, Vonage's service area encompasses more than 1900 active rate centers in over 100 US markets. Vonage is sold directly through and retail partners such as Wholesale partners such as EarthLink, ARMSTRONG®, Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 75,000 lines in service, Vonage continues to add more than 10,000 lines per month to its network. Over 3 million calls per week are made using Digital Voice, the easy-to-use, feature-rich, flat rate phone service. Vonage is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit or call 1-VONAGE-HELP. Vonage®, Vonage Digital VoiceTM, Toll Free PlusSM and Virtual Phone NumberSM are trademarks of Vonage Holdings Corp.

About Motorola Broadband Communications Sector

The Motorola Broadband Communications Sector provides a scalable, integrated end-to-end system for the delivery of broadband services that keeps consumers informed, entertained and connected. Its technology enables network operators and retailers to create and execute on new business opportunities by providing innovative products and services to the home. Customer-responsive design and manufacturing expertise further contribute to the company’s position as the world's leading supplier of digital cable set-tops and cable modems. For more information about the Motorola Broadband Communications Sector, visit

About Motorola

Motorola, Inc. (NYSE:MOT) is a global leader in wireless, automotive and broadband communications. Sales in 2002 were $27.3 billion. Motorola is a global corporate citizen dedicated to ethical business practices and pioneering important innovations that make things smarter and life better, honored traditions that began when the company was founded 75 years ago this year.

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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.

** Certain call types excluded. is not an official Vonage support website & is independently operated.
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