Vonage betting big on mobile

January 4, 2010

Vonage betting big on mobile After lawsuits threatened to shutter the low-cost Voice over IP (VoIP) calling company, Vonage is attempting a revival on the promise of the mobile market and cheap International calling.

The future was looking grim for Vonage before former AT&T marketing executive Marc Lefar took the reigns back in 2008. The company was facing major lawsuits, patent disputes and class action lawsuits from its own customers.

Vonage is also facing threats from the major Internet providers such as Cox and Verizon, who offer discount bundles for customers who already subscribe to their Internet offerings. Vonage’s lot has been in undercutting these companies, making profitability elusive.

Now Vonage is banking on its Internet roots to create more value for its subscribers by allowing them to carry their telephone number over to their mobile phone. Vonage released applications for the iPhone, Blackberry and iPod Touch platforms along with unlimited International calling.

Vonage still has to prove that it will be able to win over subscribers from the major ISPs, but its base of 2.5 million customers isn’t a bad start. Given the changes that the company is making, would you consider going with Vonage for your VoIP needs?



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