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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 Customer Reviews
Vonage vs. Time Warner Cable SoCal
Vonage vs. Time Warner Cable SoCal



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Vonage UK Review



Vonage Pros and Cons for 2006
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



Salt Lake City: impressions after several months
Salt Lake City: impressions after several months




Vonage Reviews

Cable Companies Accustomed To Large Capital Outlays Are In For A Pleasant Surpri


Vonage In Print News

February 16, 2004

By Ted Hearn

Washington- Cable companies accustomed to large capital outlays are in for a pleasant surprise: the costs of rolling out Internet-protocol telephony service just keep plunging.

Cablevision Systems Corp. president Tom Rutledge last Tuesday said he continues to be amazed at the decline in costs associated with the rollout of voice-over-Internet protocol (VoIP), which could be the next big thing for cable. “I can't budget my capital costs low enough. I keep being shocked at how quickly the price of modems continues to fall [and] the cost of switching continues to fall,” Rutledge said at a conference here hosted by the telecommunications-analysis firm Precursor.

Cablevision made its $39.95 Optimum Voice service available to 4.4 million homes late last year. Voip subscriber totals are expected to be reported for the first time March 2, spokesman Jim Maiella said.

The service already generates 40% operating margins, translating into about $15 per customer in monthly cash flow, Rutledge said. Margins should improve steadily, because as Voip penetration increases, Cablevision realizes a steady reduction in charges imposed by the Baby Bells to terminate calls, he said. The Voip market leader actually is Vonage Holdings Corp., with about 100,000 customers, all of whom need high-speed Internet connections.

Vonage chief financial officer John Rego told the Precursor forum that about 70% of Vonage customers use a cable modem, while 30% use digital subscriber lines. Rutledge said he didn't mind Vonage leveraging his network because “every customer that buys our high-speed access service because they want Vonage is really a win for us.” Cable has pledged not to use network control to squeeze Voip competitors like Vonage by charging access fees or similar charges.

Last week, FCC chairman Michael Powell warned cable to keep that promise if it wanted to avoid regulation. Mark Coblitz, Comcast Corp.'s senior vice president of strategic planning, said his company wasn't afraid of third-party Voip providers running a business on its network. “Frankly, that's OK. That's the way competition will occur,” Coblitz told the Precursor forum. “We will have other things that we will do in our services, because we built the infrastructure and we have that,” Coblitz said.

Other free Voip services, offered by Skype and Free World Dialup, don't connect calls to phones outside their Internet-exclusive systems. Coblitz said consumers will surprise businesses and regulators by the Voip choices they make.



 
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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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