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Vonage drops rates as VoIP pricing war gains momentum
Posted: 01-Oct-2004 [Source: Vonage]

[Competition in VoIP market continues as Vonage slashes price of Premiuim Unlimited calling plan by $5 per month.]

Edison, NJ -- Vonage, the leading provider of broadband phone service in North America, announced it will upgrade all customers on its Local Unlimited Plan, to Premium Unlimited, reducing the cost of unlimited calling throughout the US and Canada to $24.99 per month.

"Over the past five months, we've noticed a trend in the industry away from calling certain minutes local and others long distance -- in an IP world distance is irrelevant, so we have changed our calling plans to reflect that," said Jeffrey A. Citron, Chairman and CEO of Vonage Holdings Corporation. "Instead of giving this great new upgrade to a small set of people, we decided to make it available to all of our customers and automatically upgrade those to the new price even if they're on the unlimited package already."

In favor of a simplified pricing model, Vonage will now only offer two residential calling plans with the same great features for free:

* $14.99/month -- Residential Basic Plan -- 500 minutes of local, toll and long distance calling throughout the United States and Canada.

* $24.99/month -- Residential Premium Unlimited Plan -- unlimited calling throughout the 50 United States and Canada anytime, anywhere.

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