Why is Canada's Vonage service much more expensive than US?

Posts: 1 · New Forum Member Joined: Dec 27, 2006 Posts: 1

The premium Vonage service for users in Canada is $39.99 CDN. In the US, its $24.99 USD.

Why the descrepency, exchange rates are not stuck in 95. We're talking 25 USD = 29 CDN.

This makes it more appealing to have Vonage shipped from the US through a US address,

pls explain

Posts: 2 · New Forum Member Joined: Jul 07, 2006 Posts: 2

bodhichita wrote:

This makes it more appealing to have Vonage shipped from the US through a US address,

pls explain

If you did that, you would be stuck with a US number, unless you paid $5 for a virtual number. Even in that case, your caller ID would always show the US number. Still, when I move to Canada later this year, there is a good chance that I will just keep my US Vonage and add a local Canada number as a virtual number.

Possibly the whole less people, more spread out answer is one Vonage would give you...in other words, the cost of doing business in Canada is really that much more. Is that true, I'm not sure, but will leave it up to future posters to debate.

Posts: 293 · Vonage Forum Master Joined: Jan 22, 2006 Posts: 293

It may be more expensive for them to operate in Canada. But I wouldn't know.

I do think that the competitive market is tighter and more aggressive in the US. About 3-4 years ago, Vonage was $34.99 for the unlimited. It is rather suspicious since Vonage dropped their rates near the times that their competitors did. In that line of thinking, there really is not competition in the Canadian Voip market. Most entrants in the market are more competitive to the landline rates anyway.

Of course the exchange rate does fluctuate, but I do feel a little gyped with the higher Canadian rate.

Truthfully, I have two lines, 1 through US and 1 through Canada. It is almost the same price for me to have these two basic 500 lines as opposed to 1 CDN unlimited line. So it's nice flexibility for me.

Posts: 2 · New Forum Member Joined: Jan 22, 2007 Posts: 2

I've checked in to this... essentially from what I can tell is that apparently it is much more expensive for them or any Voip company to operate in Canada.

I went with Vonage for awhile.. however, I just found this new provider in Canada called ReliaClear http://www.reliaclear.com. I ported my number to them from Vonage... I had a lot of quality issues with Vonage Canada.. probably due to them over loading their network or something, I have no idea.

However, ReliaClear has been great so far quality wise, and the price I couldn't beat, I'm paying $24.99 a month Canadian and that includes Canada, US and 500 minutes to a country of my choice. It was a smart choice to switch.. besides I got a month free Smile

So between Vonage and ReliaClear I now have 2 months I never had to pay out to Bell Canada! Smile

Posts: 10 · Vonage Forum Associate Joined: Oct 27, 2006 Posts: 10

thx for the info i called relia clear in dallas tx and will switch
cheaper and i only call the uk so 24.99 is perfect
they assure me their routers are in canada so shud not have the problems calling local 800 numbers

Posts: 29 · Vonage Forum Junior Joined: Aug 17, 2005 Posts: 29

I think the Price difference could be enumerated to a number of things. first thing that comes to mind is that Vonage is primarily an american company, therefore operating costs in canada could be more expensive because of the continuous commincations between Canada and the US (ie, transport of execs from US to canada). secondly I see the cost of living in canada more expensive than in the us and the QOL is also higher in canada - therefore things cost more dough (ie servers, workers etc. etc.) the third thing comes back to the first about Vonage being an american company, since its an american run company, alot of our calls may be routed through american routing stations and then back to canada - I mean im not sure about this last one - I just thought this because of the continuous list of 1-800 nums that we cannot reach even though they are canadian numbers. If this is the case. Canada Vonage needs to pay america Vonage dollars for usin there lines.

my .02