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Kennetisa Posted:
In The Forum:
Hard Wiring - Installation
Crown Je sais quoi sandstein mauersteine
On Apr 27, 2017 at 19:03:24

dconnor Posted:
What is the main
number on the
account? And
which one is the
virtual number?

In The Forum:
Vonage UK
How do you call 999
On Apr 27, 2017 at 13:52:02

Trafford Posted:
Seems like a
question. We
rely exclusively
on a Vonage system
for our

In The Forum:
Vonage UK
How do you call 999
On Apr 27, 2017 at 05:42:50

diazou Posted:
Hello, It's
compatible with
Android your phone
? Thanks!

In The Forum:
IP PBX for small business
On Mar 28, 2017 at 07:42:33

jeddaisg Posted:
Hi all We have
a Vonage VOIP
system for our
office. Lately,
our call quality

In The Forum:
Ethernet Cable; Wiring schematic? 568-B?
On Feb 23, 2017 at 12:33:52

beast321 Posted:
I don't know if
you heard, that
many more
Dreamcast games
are opened up

In The Forum:
Fax - Tivo - Alarms
Using phone as a dial up modem for Dreamcast Gaming
On Feb 15, 2017 at 21:16:51

Av8rix Posted:
In The Forum:
New adapter and router -- MAC change
On Jan 10, 2017 at 19:07:21

tplink Posted:
Im trying to add
my HT802 vonage
adapter to my home
network. I
currently have

In The Forum:
Hard Wiring - Installation
Vonage behind switch
On Dec 05, 2016 at 06:35:11

DWSupport Posted:
After recent
Vonage update that
took place on the
4th and 5th of
Nov. E-mails with

In The Forum:
Voicemail Not Forwarding to Outlook Accounts
On Nov 10, 2016 at 12:23:26

peterlee Posted:
Had a call from a
Hospital in Ajax,
Ontario to my home
Scarborough, Onta

In The Forum:
Vonage Canada
Hospital Incoming call unable to connect
On Nov 08, 2016 at 11:59:50

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Vonage VoIP Forum Digest - August 9, 2007

Vonage VoIP Forum Digest

August 9, 2007

By Daniel Connor

Welcome to today's edition of the Vonage Voip Forum Digest.

First, let's catch up on Vonage's earnings news.. Then we'll go straight to two interesting Vonage Forum threads, one about set-up questions and one about Software.

In The News

Vonage Announces Quarterly Earnings

today announced results for the quarter ended June 30, 2007.

Revenue for the second quarter 2007 grew to a record $206 million, a 43% increase from $144 million in the second quarter 2006, driven by customer line growth and an increase in average revenue per line.

Adjusted loss from operations(1) narrowed dramatically to $18 million in the quarter, a 70% improvement from $60 million in the year-ago quarter. Adjusted loss from operations excluding certain charges(1) narrowed to $3 million in the second quarter 2007, a 95% improvement from $60 million in the second quarter 2006 and a 93% improvement from $48 million last quarter.

For the second quarter of 2007, the Company's net loss narrowed to $34 million, or $0.22 per share, from a net loss of $74 million reported in the second quarter 2006. Net loss excluding certain charges(2) improved to $18 million, or $0.12 per share, from $61 million in the first quarter 2007.

Jeffrey Citron, Vonage Chairman, said, "We made significant strides this quarter in reducing costs and narrowing our losses. Despite the continued challenges associated with the Verizon litigation, the Company maintained its focus on achieving adjusted operating profitability(1).

"At the same time, we have substantially completed the deployment of workarounds for the two name translation patents and have completed the development of the wireless patent workaround. This is a significant step toward moving ahead with our business in the wake of the Verizon litigation. We look forward to the Court's ultimate decision and remain confident in the strength of our appeal."

Beginning in the second quarter 2007, the Company scaled back marketing expenditures to retool its marketing campaign. This led to an expected slowing in net subscriber line additions. Vonage added approximately 57,000 net subscriber lines during the quarter and finished with 2.45 million lines in service. The Company expects net subscriber additions in the third quarter to be higher than in the second quarter as new marketing initiatives take hold and the negative press associated with the Verizon litigation lessens.

Second Quarter 2007 Financial and Operating Highlights

Second quarter 2007 revenue grew to $206 million, up 43% from $144 million in the year-ago quarter. The year-over-year increase was driven by growth in subscriber lines and an increase in average monthly revenue per line.

Average monthly revenue per line in the second quarter 2007 was $28.38, up $0.49 from $27.89 in the year-ago quarter and up from $28.31 reported in the first quarter 2007. Average monthly telephony services revenue per line for the quarter grew to $27.63, up 4% from $26.59 in the year-ago quarter.

In the second quarter 2007, direct cost of telephony services was $52 million, up from $40 million a year ago, and down from $56 million in the first quarter 2007. As a percent of revenue, cost of telephony services fell to 26% from 29% of revenue in the year ago and sequential quarters. On a per line basis, average cost of telephony services fell to $7.21, down from $7.72 in the second quarter 2006 and $8.03 sequentially as a result of one-time quarterly benefits associated with Universal Service Fund refunds of $2 million. Total direct cost of telephony services, which includes an $11 million Verizon royalty, was $63 million in the second quarter 2007.

Direct cost of goods sold for the quarter was $11 million versus $16 million last year and $13 million in the prior quarter. Direct margin(3) improved to 69% of revenues from 61% in the year-ago quarter.

Selling, general and administrative ("SG&A") expense was $88 million, up from $66 million in the year-ago quarter, and down from $91 million sequentially. As a percent of revenue, SG&A fell to 43% from 46% in the year-ago and prior quarters. SG&A excluding certain charges(4) of $4 million for severance fell to 41% of revenue.

Marketing expenditures in the second quarter 2007 were reduced to $68 million, or 33% of revenue, from $90 million, or 62% a year ago. Sequentially, marketing declined from $91 million, or 46% of revenue. Marketing cost per gross subscriber line addition ("SLAC") was $287 in the second quarter 2007, an increase of $14 from $273 last quarter, and up $48 from $239 a year ago. The Company believes additional opportunity exists to reduce marketing acquisition costs by exiting certain contracts in the second half of 2007 that could not be canceled in the second quarter. The Company is already seeing increased marketing efficiency as SLAC for June and July averaged approximately $250. Vonage expects third quarter 2007 SLAC to be lower than first quarter SLAC.

Pre-marketing operating income(1), which is a measure of the cash flow from the Company's existing customer base, grew to $56 million in the quarter, up from $40 million last year and $39 million sequentially. Excluding certain charges, pre-marketing operating income(1) grew to $71 million.

Average monthly customer churn was 2.5% in the second quarter 2007, up slightly from 2.4% last quarter. As part of the Company's effort to improve customer satisfaction and increase retention, Vonage further extended the customer grace period for non-payment in order to better resolve customer accounts that may be past due. This extension had a one-time positive impact of 20 basis points on average monthly customer churn in the second quarter.

Current cash, cash equivalents and marketable securities as of June 30, 2007 totaled $344 million, which includes $66 million of restricted cash used as collateral for the Verizon bond. This compares to $410 million last quarter. The change in cash from the prior quarter was driven by cash used from operations of $53 million, capital expenditures of $8 million, and restricted cash of $6 million.


On The Vonage Voip Forum

Fitting the nature of his question, new Vonage Forum Member typO begins a Vonage Forum thread by assigning it the title of, New Customer Questions.

He writes:

"I'd like to know how painless a switch to Vonage will be for one of my business clients that works out of their home.

The connection is Verizon DSL business class service with static ip. The business line will remain on the DSL line with Verizon service.

There is also three residential land lines that we are thinking of switching to vonage.

Where the DSL enters is a DSL modem and windows small business server premium connected directly to the broadband modem. The server is running ISA and manages all the traffic on the network.

A second network adapter on the server is connected to a linksys wrt54g wireless router that has four lan ports. There are two clients hard wired to the router and several roaming clients using the wireless.

I'd like to know first if we can make this work with vonage; second, what is the best hardware to buy; and third what is the best configuration."

Then TypO follows up with a quick note, pointing out that one of the residential lines is used exclusively to send and receive faxes.

NateHoy reads typO's posts and responds thoroughly with this input:

"First thing to do is to run some Voip tests, both from this site and - each Vonage line ideally should have about 90kbps of upstream and downstream bandwidth available.

Second thing would be to get a single Vonage adapter and line, and try that out under the 30-day guarantee. Be sure you read the terms carefully. If that works out, you can simply have a FAX line added to the PHONE2 port of that same adapter, then start another account for the second phone line, or buy another adapter for it.

Final thing to consider is usage patterns. Be sure you separate the "business" and "residential" functions. In other words, if you start using one of the Vonage lines for your business, and you start using it in patterns that make it obvious you are, that is a violation of the Vonage ToS.

If you think you might use a line for business, Vonage does have a plan for $50 (last I knew) that includes a FAX line and an unlimited-use voice line. This is a tad more expensive than a Voice line plus a FAX line for consumer use (which would be around $35-40 a month), but if you think the line might be used for business as an overflow/outbound line, it's probably worth spending the $10-15 extra per month. You can then put in the additional residential line as a separate account.

As far as the best hardware, it doesn't sound like you need any more routers in that configuration - if you can get the PAP2 at a retail shop, it's a good simple Vonage device. Otherwise, I'd get something that is free-after-rebates and just turn off or don't use the routing and wireless features if it comes with them."

Then, ed56 adds," I would also think you may need to set some rules on ISA to allow Vonage. The SBS3 I help administer also has ISA enabled, and can be difficult to work with."

New Vonage Forum Member SkOOL has a Vonage software question about the best way to record Vonage voice calls. So I guess it is entirely natural for him to start a new Vonage Forum thread called, Software Question.

"I am trying to locate a call logging software solution for Vonage. Something that has caller ID and contains a field that allows data to be entered so when i receive a call the number and data automatically appear on the application," SkOOL writes. "I have not been able to find this software for Vonage and was wondering if anyone knew of anything that was available."

Vonage Forum Member vonalink writes that We have developed an application called ScreenPop which may meet your needs. Click on the website in my signature, or send me a private message. His site is

Vonage Stock Report

Today  on the New York Stock Exchange, Vonage stock climbed appreciably after the quarterly earnings announcement I referred to above. At Noon, Eastern Time the stock was at $2.38 a share, compared to a close yesterday of  $2.20 a share. And with more than two million Vonage shares already traded just this morning, trading is very active.

That's what's hot about Vonage today. Check with us for our next edition of the Vonage VoIP Forum Digest.

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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.

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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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