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Vonage In The News
Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2013 Results

Carolyn Katz Elected to Board of Directors of Vonage Holdings Corp.

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Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review
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Several Major Telephone Companies Plan To Start Routing Phone Calls Over Interne


Vonage In Print News


January 11, 2004

By Brad Holbrook

BRAD HOLBROOK, co-anchor:

Welcome back to Business Week Money Talks.

Coming up, the NFL gets serious, Sirius radio that is. We'll explain that to you in a minute. But first, a big difference in the way people talk to one another.

Several major telephone companies, like here at AT&T, plan
to start routing phone calls over Internet. Now this won't
make a big difference to the way you place a call. But it
might make a big difference in how much you have to pay for
it.

Mr. CHRISTOPHER WOOD (AT&T):
It brings financial savings above and beyond what local and long distance bring you today. Those are between the $50 and $60 range, with incremental taxes and regulatory fees applied on top of those.

These types of services are substantially lower.

HOLBROOK:
Todd Cormack runs a small software company out of his home in Georgia and was looking for a way to cut costs.
So he became one of 100,000 people already making phone calls over the Internet.

Mr. TODD CORMACK (VOIP User):
I'm saving about $70 a month, and have been for a year.

HOLBROOK:
Voice over Internet Protocol, as it's called, has been around for years. But new technology has made it easier to use.

Mr. CORMACK:
You get this little box and you plug it in. And it's just that easy. There's nothing magical to it.

HOLBROOK:
With a simple adapter, any phone can be connected to a high-speed Internet service. Users can make and receive calls just as they would with any other phone.

The most obvious difference is it is cheaper, much cheaper.
New Jersey-based Vonage offers unlimited local and long-distance calls for between $15 and $35 a month, compared to traditional plans that cost as much as $70. (A visual of Vonage's Web site was shown)

Mr. JEFFERY CITRON (CEO, Vonage):
There are three different plans that people can choose from that make sense for you.

If you're not a big telephony user, hey, for $15 you can
have all the features, every single one, voice mail, caller
ID, call waiting, three-way calling, everything you can
think of all for $15.

A phone number, a great phone company and 500 long-distance
minutes? That's a pretty good deal.

HOLBROOK:
The companies can offer lower prices because the Internet helps keep their costs down. When the phone signal goes across the Internet, the companies don't have to pay the local phone services that own the phone lines.

That can mean savings of millions of dollars. Time Warner
Cable, AT&T and Qwest Communications all announced plans to
get a piece of the growing market. Analysts expect most
phone companies to jump in.

Mr. CHARLES GOLVIN (Telecom Industry Analyst):
This is their future path, no question about it. It's not a
question of if they're going to do it, it's really a
question of when.

HOLBROOK:
There are disadvantages. You do need high-speed Internet service. There have been complaints about line quality. It doesn't work when the power goes out and there is no requirement for companies to provide 911 emergency service.

As of now, there are virtually no regulations.

Mr. DAVID DORMAN (CEO, AT&T):
It has a promise to lower cost and a huge number of features that people will find enhances their productivity and fun.

HOLBROOK:
Fun like blocking numbers from your computer at home or receiving and placing calls from anywhere in the world from your computer. Or, for people like Todd, just the fun of saving money.



 
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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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