Why do we pay more for vonage with less features?

Posts: 1322 · Vonage Forum **MVM** Joined: Nov 08, 2006 Posts: 1322

I am wondering why we are paying more for Vonage here in Canada compared to the rates in the States?

We also have less features, mind you the extra features are nothing great and they are:

Vonage forecast
Get News
511 travel information
811 call before you dig

and now there is voicemail to text (25 cents a message)

I am paying $39.99 a month compared to the $24.99 a month. You can't say it is because of the Canadian dollar because now it is almost at par with the U.S dollar.

Posts: 22 · Vonage Forum Associate Joined: Sep 14, 2006 Posts: 22

There are two very big reasons why
1) infastructure/cost; Remember the USA started a few years before we did here in Canada, also our rate of employee pay is also higher in other words, the cost of the infastructure here in Canada costs more.
2)Revenue/subscribers; In the USA last year Vonage had revenues of 580million which equates to 1.2 million subscriber lines active, here in Canada we had revenues of just over 21 million which equates to just over 500,000 subscriber lines active. Active subsriber line doesn't mean however they are still up and working it just means at some point through 2006 they were activated, you must take into account the churn which from what they say is sitting at about 2.5%
Hope that answers your question.

Cndvoip
Vonage reseller

Posts: 1322 · Vonage Forum **MVM** Joined: Nov 08, 2006 Posts: 1322

That is a lot of infrastructure for $15 extra a month. I do believe that the price went down in the states to $24.99 all inclusive.

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

for that very reason is switched to 19.95 500min out /unlimited in
plan working great using about 450 mins out saving a bundle

Posts: 1322 · Vonage Forum **MVM** Joined: Nov 08, 2006 Posts: 1322

I will have to keep an eye on the upcoming bills, we usually have 1000 minutes on our account so it is worth for me to spend the $39.99 a month, still cheaper than Bell.

Posts: 120 · Posted: Thu May 10, 2007 3:20 pm Post subject: Cheaper in UK

We only pay £7.99/mo all inclusive of tax (UK VAT at 17.5%) here in UK, which is CAN$17.50 (approx) or US$15.50 (Approx). All local/national calls are included and also Ireland is included too.
Maybe because UK is so small with less Vonage subscribers.
Its surprises me with all of the regulatory recovery fees you have in US and Canada.
Our 999 emergency service is paid for by government and calls are handled by various phone companies e.g BT /Cable & Wireless, this fee is taken from our yearly 'Council Tax' bill, which we all have to pay according to the rateable value of our homes, it isn't cheap though, I live in a 2 bedroom home and pay £1100 per year (Approx CAN$2415, or US$2175).
Some large properties can pay over $4000 per year!
I guess its better for us to have vonage because of the other high costs of living!
Anyway, I hope I haven't bored you.
teheheheheheh.

Posts: 52 · Full Forum Member Joined: Feb 22, 2007 Posts: 52

To digress a little, I'm not sure the council tax (known as municipal property tax in Canada) is out of line with North America. I paid over $5,000 Canadian a year when I lived in Canada, and now pay about $2,500 on a small condo I own there. On the other hand, I have a large property in Brazil, where I spend most of my time, and pay about $300 Canadian a year. I don't pay much, but on the other residents here get virtually nothing in the way of municipal services..

Posts: 1322 · Vonage Forum **MVM** Joined: Nov 08, 2006 Posts: 1322

5 grand a year in taxes, where did you live and how big was the mansion?

Posts: 120 · Posted: Fri May 11, 2007 12:15 pm Post subject: makes me feel better

Oh well, makes me feel better knowing that.
Its just a shame the Uk is cold and wet!

Posts: 52 · Full Forum Member Joined: Feb 22, 2007 Posts: 52

roscopco wrote:

5 grand a year in taxes, where did you live and how big was the mansion?

Oakville Ontario. Fairly sized four bedroom house on a normal sized lot. But far, far, far from a mansion. (Although they do have a few there; I noticed one was for sale a few months back for $46 million, which would have been the highest price ever for a house sold in Canada if it were to sell for that much. Not sure what happened).