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Vonage offers unlimited local calls and 500 long-distance minutes for $25.99 a month.
Vonage expects to have 100,000 customers up from 15,000 now—and to be profitable by the end of the year.SBC and other local carriers are already losing lines to rivals (see chart).
The logical conclusion of the Vonage model is the demise of distance- and time-based charges, with telephony becoming an internet-based subscription service.That is not to say that Vonage is about to conquer the world.
But they may soon extend their offerings to compete with the likes of Vonage, Skype, 8X8 and a host of other new firms that concentrate on providing VOIP services.
Vonage and the giants are in fact offering a compromised form of internet calling.
This month Skype offered its users free calls from their computers to ordinary phones in North America, a snub to Vonage.
And rumours are swirling that Amazon and Chase bank are (separately) about to enter the online car-sales business.In this section Going twice Classify this Not paranoid enough Death of the salesman All in the family Vonage unwanted Muddying the waters More, more, more ReprintsSo is the time finally ripe?
But the Vonage model is even more disruptive, further undermining the connection between specific area codes and particular places.
Vonage was founded in 2001; Riverbed rolled out its first product in 2004.
"Vonage is claiming victory because they have the yellow jersey in the third stage of the Tour de France," says Hossein Eslambolchi, AT&T's technology chief.
Vonage is a telecoms company with the agility of a dotcom.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com