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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 Pros and Cons for 2006



Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review
Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review



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Salt Lake City: impressions after several months




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Internet-Based Phones Seen As Cost-Cutting Strategy


Vonage In Print News

Internet-Based Phones Seen As Cost-Cutting Strategy

January 19, 2004

By Bridget Botelho

Verizon Communications announced plans to launch Voice-over Internet Protocol technology later this year - the next big thing in telecommunications that promises lower costs for networks and lower service fees for consumers.

“We see a lot of unprecedented changes in the telecommunications industry. This is the next big thing,” said Verizon’s Rhode Island Region President Donna Cupelo. “We plan on spending $3 billion over the next few years to bring (broadband and VoIP) services to people.”

Voice-over Internet Protocol, or VoIP, combines data and voice communication traffic into a single network by digitizing analog voice signals and converting them into information that can be sent over the Internet.

Since the Internet does not recognize state and country borders, networks could save billions of dollars in charges from long-distance carriers. The integration of voice, data and video into a single network also eliminates infrastructure and maintenance overlap, reducing operational costs.

Verizon officials are not disclosing when they plan to deploy Voip services or how much it will cost consumers, but packages are expected to resemble those of the wireless market, Cupelo said. “We aren’t dealing with individual components like separate long-distance and local charges anymore. If you look at the wireless environment (compared to land phone lines) the result is lower prices,” Cupelo said. When asked if Voip will eventually phase out traditional long-distance usage, Cupelo said she doesn’t think so.

AT&T announced plans to offer Voip in December, just after Time Warner Cable announced plans to enter the market, joining Cox Communications, Comcast and Cablevision, which offer some Voip services.

Other telecommunications providers, like Choice One Communications, aren’t jumping on the Voip wagon just yet though, according to Corporate Communications and Investor Relations Director Lisa M. Schnorr.

“We look at Voice-over IP as a way to access our customers, not as a product offering,” Schnorr said. “There aren’t a lot of benefits beyond phone services yet.

“The benefits will come as the capability is there and companies start to develop enhanced applications. Voip is not a technology we utilize today, but there may be ways for us to leverage it in the future.”

Choice One officials see Voip as a way of transmitting long-distance calls over the Internet rather than through costly long-distance carriers, reducing their costs and increasing company margins.

“On an ongoing basis, Choice One evaluates various access technologies to ensure we optimize our costs while maintaining a high-quality service for our clients,” Schnorr said. “As the convergence of telecommunications services continues, there will be a greater emphasis on next generation technologies such as VoIP.”

Other networks, like Vonage offer the Voip phone service to customers by providing a box to connect a regular phone to the computer and routing calls over the Internet rather than over a telephone network.

For a fee of $34.99 per month, customers get unlimited phone calls anywhere in the United States and Canada and inexpensive phone calls anywhere else in the world.
Bypassing traditional phone lines with the Internet, which the Federal Communications Commission does not regulate, telecommunications companies are also sidestepping a number of charges and taxes.

AT&T is currently using Voip for long-distance instead of traditional lines. The FCC is currently grappling over whether or not to regulate Internet-based telephones.
“It’s complicated because it’s over the Internet, but if it sounds like a phone and it works like a phone, then it’s a phone,” Schnorr 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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