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Saturday, April 03, 2004

Vonage sues AT&T over branding of its VoIP product
Vonage has filed suit in US District Court in Trenton, New Jersey in an attempt to force AT&T to change the name of its CallVantage VoIP service. The brand, Vonage contends, is to close to the Vonage name.


Vonage subscriber growth rate has doubled to 5,000 net adds per week
Subscriber growth rate has doubled for Vonage to 5,000 net adds per week, reflecting its early lead in the market. In addition, the company is on the verge of expanding its service outside the U.S., to Canada, the U.K., Hong Kong, Switzerland, and Mexico. Currently customer churn remains low, below 2.5% for those customers who keep the service beyond 30 days. While this seems unrealistically low, in fact if one considers that Vonage’s 130,000 subs are mostly early adopters, with few other alternatives, it’s not too surprising they’re so loyal. The retail relationship with Circuit City has gone well so far, with the rate of subscriber additions ahead of management expectations.

Vonage to offer Wi-Fi phones
Vonage will begin selling portable Wi-Fi phones later this year, allowing its subscribers to make and receive phone calls within range of Wi-Fi wireless access points and any home Wi-Fi network. Other carriers also are likely to start selling handsets that incorporate Wi-Fi, largely as a means of unloading wireless traffic back onto the wireline network in an effort to stem the capex-escalating effects of wireless substitution.

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