Vonage
{{short description|American communications company}}
{{Infobox company
| name = Vonage Holdings Corp.
| native_name_lang =
| trade_name = Vonage
| logo = Vonage Logo.png
| logo_size = 250px
| logo_alt =
| logo_caption =
| logo_padding =
| image =
| image_size =
| type = Subsidiary
| traded_as = {{NASDAQ was|VG}}
| successor =
| founded = {{Start date and age|1998}} (as Min-X)
{{start date and age|2001|08|24}} (as Vonage) Edison, New Jersey
| defunct =
| fate =
| hq_location =
| hq_location_city = Holmdel, New Jersey
| hq_location_country = U.S.
| area_served = Worldwide
| key_people = {{ublist
|Niklas Heuveldop (CEO){{Cite press release |title=Ericsson announces leadership changes to the Executive Team |url=https://www.ericsson.com/en/press-releases/2024/1/ericsson-announces-leadership-changes-to-the-executive-team |website=Ericsson.com}}
|Stephen Lasher (CFO)}}
| industry = Cloud Communications services
| products = Unified Communications, Contact Center, Communications APIs, Home VoIP Phone Service Provider
| brands =
| services = Business Cloud Communications Services
| revenue = {{increase}} {{US$|1.41 billion|link=yes}}
| revenue_year = 2021
| operating_income = {{increase}} US$7.4 million
| income_year = 2021
| net_income = {{increase}} {{US$|-24 million}}
| net_income_year = 2021
| assets = {{decrease}} US$1.39 billion
| assets_year = 2021
| equity = {{increase}} US$618 million
| equity_year = 2021
| owner =
| members = 1.1 million subscribers
| members_year = 2019
| num_employees = 2,082
| num_employees_year = December 31, 2021
| parent = Ericsson
| divisions =
| subsid =
| former_name = Min-X.com (1998-2001)
| founders = {{ubl|Jeff Pulver|Jeffrey A. Citron}}
| website = {{URL|vonage.com}}
| footnotes = {{Cite web |date=24 February 2022 |title=Vonage Holdings Corp. 2021 Annual Report (Form 10-K) |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/0001272830/000127283022000040/vg-20211231.htm |publisher=U.S. Securities and Exchange Commission}}
}}
Vonage Holdings Corp. ({{IPAc-en|ˈ|v|ɒ|n|ɪ|dʒ}}, or simply Vonage) is an American cloud communications provider operating as a subsidiary of Ericsson. Headquartered in Holmdel Township, New Jersey, the organization was founded in 1998 as Min-X as a provider of residential telecommunications services based on voice over Internet Protocol (VoIP). In 2001, the organization changed its name to Vonage.{{Cite web |title=FORM S-1 |url=https://www.sec.gov/Archives/edgar/data/1272830/000104746906007536/a2169686zs-1a.htm |access-date=2023-12-16}}
As of 2020, Vonage reported consolidated revenues of $1.25 billion.{{Cite web |title=Vonage Holdings Corp (VG) Q4 2020 Earnings Call Transcript |url=https://www.fool.com/earnings/call-transcripts/2020/02/18/vonage-holdings-vg-q4-2019-earnings-call-transcrip.aspx |website=Fool.com|date=18 February 2020 }} Through a series of acquisitions beginning in 2013,{{Cite web |last=Hettick |first=Larry |date=2013-12-03 |title=Vonage Acquires Vocalocity |url=https://www.networkworld.com/article/2225930/vonage-acquires-vocalocity.html |access-date=2020-08-25 |website=Network World |language=en}} Vonage, previously a consumer-focused service provider, has expanded its presence in the business-to-business marketplace, while still keeping its home VOIP service.{{Cite news |last=Burton |first=Jim |date=December 18, 2015 |title=Clark Peterson of Vonage Business on UCaaS |url=http://www.ucstrategies.com/executive-insights-for-unified-communications/clark-peterson-of-vonage-business-on-ucaas.aspx |url-status=dead |archive-url=https://web.archive.org/web/20170702005123/http://www.ucstrategies.com/executive-insights-for-unified-communications/clark-peterson-of-vonage-business-on-ucaas.aspx |archive-date=July 2, 2017 |access-date=May 24, 2016 |work=Unified Communications Strategies}}{{Cite news |last=Galbraith |first=Craig |date=November 4, 2015 |title=Business Services, Acquisitions Drive Vonage Revenue Up |url=http://www.channelpartnersonline.com/news/2015/11/business-services-acquisitions-drive-vonage-reven.aspx |url-status=dead |archive-url=https://web.archive.org/web/20170510065101/http://www.channelpartnersonline.com/news/2015/11/business-services-acquisitions-drive-vonage-reven.aspx |archive-date=May 10, 2017 |access-date=January 29, 2016 |work=Channel Partners}}{{Cite news |last=Kenwell |first=Bret |date=November 7, 2014 |title=New Vonage CEO Intends to Grow Corporate Biz, Launch New Products |url=http://www.thestreet.com/story/12946359/1/new-vonage-ceo-intends-to-grow-corporate-biz-launch-new-products.html |work=The Street}} Vonage's offering includes unified communications, contact center applications and communications APIs.{{Cite web |date=8 June 2020 |title=Dell Technologies Vet Named Vonage's New Chief Executive Officer |url=https://www.channelpartnersonline.com/2020/06/08/dell-technologies-vet-named-vonages-new-chief-executive-officer/ |url-status=dead |archive-url=https://web.archive.org/web/20200817092249/https://www.channelpartnersonline.com/2020/06/08/dell-technologies-vet-named-vonages-new-chief-executive-officer/ |archive-date=2020-08-17 |access-date=2020-08-01 |website=Forbes |language=en}}{{Cite web |date=20 July 2020 |title=Domino's Pizza Leverages Unified Communications and Voice Capabilities |url=https://risnews.com/dominos-pizza-leverages-unified-communications-and-voice-capabilities |access-date=2020-08-01 |website=RIS News |language=en}} In July 2022, Ericsson completed its acquisition of Vonage for $6.2 billion.{{Cite news |last=Chopping |first=Dominic |date=22 November 2021 |title=Ericsson to Buy Vonage for $6.2 Billion, Bulking Up Cloud Presence |url=https://www.wsj.com/articles/ericsson-to-buy-vonage-for-6-2-billion-bulking-up-cloud-presence-11637575263 |access-date=22 November 2021 |work=Wall Street Journal}}
History
File:Vonage logo until 2006.png
Min-X.com was founded by Jeff Pulver in 1998 as a Voice over IP (VOIP) exchange. He recruited Jeffrey A. Citron and Carlos Bhola, who each invested $1 million and joined as board members. Citron and Bhola then raised approximately $11 million in additional funding, pivoted the company to being a VOIP service provider, and Citron took over as CEO and Bhola as President.{{Cite news |last=Takahashi |first=Dean |date=19 March 2008 |title=Updated: Jeff Pulver's world full of voices |url=https://venturebeat.com/2008/03/19/jeff-pulvers-world-full-of-voices/ |work=VentureBeat}}{{Cite news |last=Richtel |first=Matt |date=June 3, 2006 |title=Is Vonage Sinking Or Coming Up for Air?; Stock's Dive at Debut Is Among the Deepest Seen in Recent Years |url=https://query.nytimes.com/gst/fullpage.html?res=990CE1DB1731F930A35755C0A9609C8B63&pagewanted=all |work=New York Times}} The company changed its name to Vonage Holdings Corp. in 2001.{{Cite web |date=23 May 2006 |title=Amendment No. 8 to Form S-1 |url=https://www.sec.gov/Archives/edgar/data/1272830/000104746906007536/a2169686zs-1a.htm |publisher=Vonage via SEC Edgar}}
[https://www.sec.gov/Archives/edgar/data/1272830/000104746906007536/0001047469-06-007536-index.htm Filing detail page]{{rp|90}} When the name was changed the company was located in Edison, New Jersey.{{Cite news |date=November 20, 2013 |title=You'll never guess how Vonage co-founder Jeff Pulver got his start |url=http://www.njbiz.com/article/20131120/NJBIZ01/131129978/youll-never-guess-how-vonage-cofounder-jeff-pulver-got-his-start |work=NJBIZ}} In 2005, the organization relocated its headquarters to Holmdel, New Jersey.{{Cite web |last=Colella |first=Joanne |date=2005-05-12 |title=Vonage moves corporate headquarters |url=http://www.vonage.com/corporate/press_news.php?PR=2005_05_12_0 |archive-url=https://web.archive.org/web/20060408005213/http://www.vonage.com/corporate/press_news.php?PR=2005_05_12_0 |archive-date=2006-04-08 |publisher=Vonage.com}} Pulver left the company in 2002 to start another VOIP venture.
The company first offered subscription service in the United States, then expanded to Canada in 2004 and the United Kingdom in 2005. Vonage went public on May 24, 2006.{{Cite web |title=Vonage Investor Relations FAQs |url=http://ir.vonage.com/stockquote.cfm |url-status=dead |archive-url=https://web.archive.org/web/20160417030304/http://ir.vonage.com/stockquote.cfm |archive-date=2016-04-17 |website=Vonage.com}}
= Initial public offering =
Image:Vonage Technology Center building in Holmdel.jpg
In 2006, in preparation for an initial public offering, Michael Snyder, former president of ADT Security Services replaced Vonage co-founder Citron as the organization's CEO.{{Cite web |last=Reardon, Marguerite |title=Vonage shuffles management |url=https://www.cnet.com/news/vonage-shuffles-management/ |access-date=2016-04-26 |website=CNET}} Citron could not preside over the IPO because he was permanently barred from associating with any securities brokers or dealers.{{Cite web |last=Shaw, Russell |date=2005-08-25 |title=Report: Vonage CEO's past woes won't block Vonage going public |url=https://www.zdnet.com/article/report-vonage-ceos-past-woes-wont-block-vonage-going-public/ |access-date=2016-05-08 |website=ZDNet}}{{Cite web |date=2003-02-06 |title=Administrative Proceeding File No. 3-11031 In the Matter of Jeffrey A. Citron |url=https://www.sec.gov/litigation/admin/34-47323.htm |access-date=2016-05-08 |website=SEC}}{{Cite web |last=Barboza, David |date=2003-01-15 |title=Online Brokers Fined Millions In Fraud Case |url=https://www.nytimes.com/2003/01/15/business/online-brokers-fined-millions-in-fraud-case.html |access-date=2016-05-08 |website=New York Times}}{{Cite web |last=Boorstin, Julia |date=2004-03-01 |title=Talk Gets Cheaper: Jeffrey Citron's last venture got him banished from trading stocks. Now he's getting aggressive in a hot new industry-routing phone calls over the Internet. |url=https://money.cnn.com/magazines/fsb/fsb_archive/2004/03/01/363892/ |access-date=2016-05-08 |website=CNN}} In 2007, in a restructuring effort to reduce ongoing net losses in the face of double-digit stock price slips and patent infringement issues, Snyder resigned, and Citron returned as interim CEO.{{Cite web |last=Weiss |first=Todd |date=April 12, 2007 |title=Vonage CEO resigns, Company Moves to Cut Costs |url=http://www.computerworld.com/s/article/9016340/Vonage_CEO_resigns_Company_moves_to_cut_costs_?taxonomyId=16&taxonomyName=networking_and_internet |website=Computerworld.com}} The company announced plans for 10% layoffs as it secured $215 million in financing.{{Cite web |last=Gardner |first=W. David |date=April 12, 2007 |title=Vonage Prepares To Cut Workforce 10% |url=http://www.informationweek.com/hardware/showArticle.jhtml?articleID=199000539&subSection=Telecom |website=InformationWeek}}
Vonage offered shares of its stock to its existing customer base in the period before the initial public offering.{{Cite web |title=Vonage {{!}} Investor Relations {{!}} Stock Information {{!}} Stock Quote & Chart |url=http://ir.vonage.com/stockquote.cfm |url-status=dead |archive-url=https://web.archive.org/web/20160417030304/http://ir.vonage.com/stockquote.cfm |archive-date=2016-04-17 |access-date=2016-04-26 |website=ir.vonage.com}} Under normal circumstances, only large institutional investors such as banks are able to buy shares of an IPO.{{Cite web |title=Initial Public Offerings |url=http://www.investorguide.com/igu-article-821-stock-basics-initial-public-offerings.html |url-status=dead |archive-url=https://web.archive.org/web/20121113132426/http://www.investorguide.com/igu-article-821-stock-basics-initial-public-offerings.html |archive-date=2012-11-13 |website=Investorguide.com}} Vonage's initial public offering occurred on the New York Stock Exchange on May 24, 2006, opening at $17 per share. The price closed at $14.85, a decrease of 12.7 percent, the worst trading day for any IPO in 2006 up to that point. The IPO raised $531 million for the company. However, the existing customers who lost money filed a class action lawsuit.{{Cite web |last=Reardon |first=Marguerite |date=2006-06-04 |title=Investors sue Vonage over IPO – CNET News |url=http://news.cnet.com/2100-1036_3-6079765.html |url-status=dead |archive-url=https://web.archive.org/web/20121104141751/http://news.cnet.com/2100-1036_3-6079765.html |archive-date=2012-11-04 |access-date=2016-04-21 |website=CNET News}} The IPO and its immediate aftermath also earned Vonage a Business 2.0 Magazine award as 14th of 101 Dumbest Moments in Business for 2006.{{Cite web |last1=Horowitz |first1=A. |last2=Jacobson |first2=D. |last3=McNichol |first3=T. |last4=Thomas |first4=O. |date=March 7, 2007 |title=101 Dumbest Moments in Business |url=http://money.cnn.com/magazines/business2/business2_archive/2007/02/01/8398990/index.htm |url-status=dead |archive-url=https://web.archive.org/web/20070309130037/http://money.cnn.com/magazines/business2/business2_archive/2007/02/01/8398990/index.htm |archive-date=2007-03-09 |access-date=2009-04-11 |website=CNN.com |language=en}} In 2009, Vonage reached an agreement with the IPO investors. All shareholder claims against Vonage and its individual directors and officers who were named as defendants were dismissed.{{Cite web |last=Weinberger, Evan |date=2009-06-18 |title=Vonage Says Deal Pending In Shareholder IPO Suit |url=http://www.law360.com/articles/107066/vonage-says-deal-pending-in-shareholder-ipo-suit |access-date=2016-05-08 |website=Law360}}{{Cite web |title=Vonage Holdings Corporation Securities Litigation |url=http://securities.stanford.edu/filings-case.html?id=103622 |access-date=2016-05-08 |website=Stanford Law}} The amount of the settlement, $3.6 million, was paid by an insurance policy covering the directors and officers of the company.{{Cite web |date=24 May 2006 |title=Vonage To Settle Shareholder Suit Over IPO |url=http://www.thestreet.com/story/10519948/1/vonage-to-settle-shareholder-suit-over-ipo.html |access-date=2016-04-26 |website=TheStreet |language=en-US}}{{Cite web |title=Vonage Holdings Corp. Announces Agreement in Principle to Settle IPO |url=http://pr.vonage.com/releasedetail.cfm?releaseid=390447 |url-status=dead |archive-url=https://web.archive.org/web/20160306224018/http://pr.vonage.com/releasedetail.cfm?releaseid=390447 |archive-date=2016-03-06 |access-date=2016-05-08 |website=Vonage.com}}{{Cite web |title=In Re Vonage Initial Public Offering (IPO) Securities Litigation |url=http://securities.stanford.edu/filings-documents/1036/VG_01/2009915_m_0700177.pdf}}
The firms underwriting the IPO, Citigroup, UBS, and Deutsche Bank, were fined a total of $845,000 and ordered to reimburse customers for "failure to adequately supervise communications" with investors.{{Cite news |last=Shwiff |first=Kathy |date=September 24, 2009 |title=Citi, UBS, Deutsche Fined Over Vonage IPO |url=https://www.wsj.com/articles/SB125363508003831103 |work=Wall Street Journal}} NYSE regulators went so far as to investigate possible short-selling.{{Cite news |date=September 22, 2009 |title=Citi, UBS, Deutsche Bank fined over Vonage IPO |url=https://www.reuters.com/article/finra-vonage-fines-idUSN2233495620090922 |work=Reuters.com}}
=Acquisitions=
Image:Nexmo, the Vonage API platform, presented at RISE 2018 conference.jpg
Beginning in 2013, Vonage acquired several companies as it refocused its business from a home phone provider to a global business cloud communications provider, including:{{Cite web|last=Hall|first=Brian S.|date=2015-08-13|title=How Vonage is dialing up big money by pivoting to enterprise|url=https://gigaom.com/2015/08/13/how-vonage-is-dialing-up-big-money-by-pivoting-to-the-enterprise/,%20https://gigaom.com/2015/08/13/how-vonage-is-dialing-up-big-money-by-pivoting-to-the-enterprise/|access-date=2021-08-20|website=gigaom.com|language=en-US}}{{Dead link|date=August 2023 |bot=InternetArchiveBot |fix-attempted=yes }}{{Cite web |last=Kerravala |first=Zeus |date=2016-07-26 |title=Vonage's cloudy strategy is now clear |url=https://www.networkworld.com/article/3100409/vonages-cloudy-strategy-is-now-clear.html |access-date=2021-08-20 |website=Network World |language=en}}{{Cite web |title=Vonage Solidifies Platform Story {{!}} No Jitter |url=https://www.nojitter.com/vendor-strategy/vonage-solidifies-platform-story |access-date=2021-08-20 |website=www.nojitter.com |date=4 November 2019 |language=en}}
- Vocalocity, a software as a service (SaaS) provider of cloud-based communications services, for $130 million;{{Cite news |last=Karkaria |first=Urvaksh |date=October 10, 2013 |title=Vonage picks up Atlanta's Vocalocity for $130M |url=http://www.bizjournals.com/atlanta/blog/atlantech/2013/10/vonage-picks-up-atlantas-vocalocity.html |work=Atlanta Business Chronicle}}
- Telesphere, a unified communications as a service (UCaaS) provider to large companies, for $114 million;{{Cite news |last=Ringle |first=Hayley |date=November 7, 2014 |title=Vonage acquiring Scottsdale's Telesphere for $114 million |url=http://www.bizjournals.com/phoenix/blog/techflash/2014/11/vonage-acquiring-scottsdales-telesphere-for-114.html |work=Phoenix Business Journal}}
- iCore Networks, also a UCSaaS provider to large companies, for $92 million;
- {{anchor|SimpleSignal}}SimpleSignal, another UCSaaS service provider to small and medium-sized businesses, for $25 million;{{Cite news |last=Chuang |first=Tamara |date=April 1, 2015 |title=Vonage buys Denver's SimpleSignal in move to dominate business VoIP |url=http://www.denverpost.com/business/ci_27831288/vonage-buys-denvers-simplesignal-move-dominate-business-voip |work=Denver Post}}{{Cite news |last=Koblalka |first=Dan |date=March 16, 2015 |title=Vonage Buys SimpleSignal for $25.25 Million |url=http://talkincloud.com/telco-hub/03162015/vonage-buys-simplesignal-2525-million |url-status=dead |archive-url=https://web.archive.org/web/20171016231119/http://talkincloud.com/telco-hub/03162015/vonage-buys-simplesignal-2525-million |archive-date=October 16, 2017 |access-date=January 29, 2016 |work=Talkin' Cloud}}
- {{proper name|gUnify}}, also a cloud-based communications service provider to businesses (price not disclosed).{{Cite news |last=La Monica |first=Paul |date=June 1, 2015 |title=Woo Hoo Hoo! Former Google exec wants to turn around Vonage |url=https://money.cnn.com/2015/06/01/investing/vonage-ceo-google/ |work=CNN Money}}{{Cite news |last=Buckley |first=Sean |date=August 20, 2015 |title=Vonage acquires iCore Networks for $92M, enhances UC strategy |url=http://www.channelpartnersonline.com/news/2015/11/business-services-acquisitions-drive-vonage-reven.aspx |url-status=dead |archive-url=https://web.archive.org/web/20170510065101/http://www.channelpartnersonline.com/news/2015/11/business-services-acquisitions-drive-vonage-reven.aspx |archive-date=May 10, 2017 |access-date=January 29, 2016 |work=Fierce Telecom}}{{Cite news |last=Galbraith |first=Craig |date=November 4, 2015 |title=Business Services, Acquisitions Drive Vonage Revenue Up |url=http://www.inc.com/john-brandon/simplify-your-it-4-apps-to-try.html |work=Channel Partners}}
- Nexmo, the 2nd largest CPaaS company, for $250 million;{{Cite press release |title=Vonage Holdings Corp. to Acquire Nexmo, Inc., Second Largest CPaaS Company Globally |url=http://www.prnewswire.com/news-releases/vonage-holdings-corp-to-acquire-nexmo-inc-second-largest-cpaas-company-globally-300263581.html |last1=Corp. |first1=Vonage Holdings |access-date=2016-11-02 |website=www.prnewswire.com}}
- TokBox, a WebRTC programmable video provider, for $35 million.{{Cite news |last=Gagliordi |first=Natalie |date=August 1, 2018 |title=Vonage buys WebRTC player TokBox or $35 million |url=https://www.zdnet.com/article/vonage-buys-webrtc-player-tokbox-for-35-million/ |work=ZDNet}}
- NewVoiceMedia, a Contact Center as a Service (CCaaS) provider, for $350 million {{Cite web |title=Vonage Stories |url=https://www.vonage.com/about-us/vonage-stories/ |website=www.vonage.com}}
- Over.ai, a Voice and Conversational AI provider for enterprise communications {{Cite web |date=August 6, 2019 |title=Vonage acquires conversational AI startup Over.ai's team and intellectual property |url=https://venturebeat.com/2019/08/06/vonage-acquires-conversational-ai-startup-over-ais-team-and-intellectual-property/}}
= Acquisition by Ericsson =
On 22 November 2021, it was announced that Vonage would be acquired by Ericsson in a US$6.2 billion all-cash purchase.{{Cite news |last1=Mukherjee |first1=Supantha |last2=Soderpalm |first2=Helena |date=November 22, 2021 |title=Sweden's Ericsson snaps up cloud firm Vonage in $6.2 bln deal |url=https://www.reuters.com/business/media-telecom/ericsson-buy-cloud-firm-vonage-62-bln-2021-11-22/ |work=Reuters}}{{Cite press release |title=Ericsson to acquire Vonage for USD 6.2 billion to spearhead the creation of a global network and communication platform for open innovation |date=November 22, 2021 |url=https://www.ericsson.com/en/press-releases/2021/11/ericsson-to-acquire-vonage-for-usd-6.2-billion-to-spearhead-the-creation-of-a-global-network-and-communication-platform-for-open-innovation |website=www.ericsson.com}} The acquisition was completed on 21 July 2022.{{Cite news |last=Mukherjee |first=Supantha |date=July 21, 2022 |title=Ericsson closes $6.2 bln Vonage deal after short delay |url=https://www.reuters.com/markets/deals/ericsson-closes-62-bln-vonage-deal-after-short-delay-2022-07-21/ |url-status=live |archive-url=https://web.archive.org/web/20220721182406/https://www.reuters.com/markets/deals/ericsson-closes-62-bln-vonage-deal-after-short-delay-2022-07-21/ |archive-date=July 21, 2022 |work=Reuters}} According to the press release, Ericsson acquired all of Vonage's outstanding shares at an all-cash price of US$21 per share, a 28% premium.
The acquisition was financed through Ericsson's existing cash resources, which amounted to SEK 88 billion as of 30 September 2021 on a gross basis, and SEK 56 billion on a net basis as of the same date.
Vonage became a wholly owned subsidiary of Ericsson but continues to operate under its existing name and reported as a separate segment in Ericsson accounts. Vonage's employees remained with the company and the Vonage CEO Rory Read joined the Executive Team of Ericsson, reporting to CEO, Börje Ekholm.
In February 2024, Niklas Heuveldop was appointed Head of Business Area Global Communications Platform, a new Business Area within Ericsson, and CEO of Vonage.
Patent infringement lawsuits
On June 19, 2006, Verizon filed a lawsuit alleging that Vonage infringed on five of Verizon's patents related to its VoIP service.{{Cite web |last=Reardon |first=Marguerite |date=June 19, 2006 |title=Verizon sues Vonage for VoIP patent infringement |url=http://news.cnet.com/Verizon-sues-Vonage-for-VoIP-patent-infringement/2100-7352_3-6085396.html |access-date=2010-03-13 |publisher=CNET News}} The patents describe technology for completing phone calls between VoIP users and people using phones on the traditional public switched network, authenticating VoIP callers, validating VoIP callers' accounts, fraud protection, providing enhanced features, using Wi-Fi handsets with VoIP services, and monitoring VoIP caller usage.
In 2007, Vonage launched a viral marketing campaign and website freetocompete.com, which garnered press coverage about Vonage, its campaign, the lawsuits, and issues of competition with established telecom corporations.{{Cite book |last1=Mohr |first1=Jakki J. |url=https://books.google.com/books?id=8LJwaPuuQagC&pg=PA393 |title=Marketing of High-Technology Products and Innovations |last2=Sengupta |first2=Sanjit |last3=Slater |first3=Stanley F. |publisher=Prentice-Hall |year=2009 |isbn=978-0-13-604996-8 |edition=3 |page=393 |access-date=October 9, 2012}}{{Cite news |title=Vonage throws oranges at Verizon |url=https://www.telecoms.com/communications-service-provider/vonage-throws-oranges-at-verizon |access-date=2025-01-27 |language=en}}{{Cite web |date=April 25, 2007 |title=Vonage Shakes Its Finger at Verizon |url=http://www.businessweek.com/the_thread/techbeat/archives/2007/04/vonage_shakes_i.html |url-status=dead |archive-url=https://web.archive.org/web/20080412072259/http://www.businessweek.com/the_thread/techbeat/archives/2007/04/vonage_shakes_i.html |archive-date=2008-04-12 |website=BusinessWeek}}{{Cite web |date=May 3, 2007 |title=Vonage, the WSJ, and the case of the missing ad copy |url=https://money.cnn.com/2007/05/02/news/companies/pluggedin_mehta_ad.fortune/ |website=CNNMoney}}
On March 8, 2007, a jury found Vonage liable for infringing three patents held by Verizon, and but found no infringement as to two other patents. The jury returned a verdict against Vonage for $58 million and included a royalty rate of 5.5% of every sale to a Vonage customer to Verizon. Subsequent to this jury award, there were a series of appeals and intermediate stays on payment. Vonage was also ordered by the court to stop signing up new customers,{{Cite web |last=Barakat |first=Matthew |date=April 7, 2007 |title=Ruling bans Vonage from signing up new customers |url=http://www.post-gazette.com/pg/07097/775909-28.stm#ixzz0oE6sXgAP |access-date=May 17, 2010 |website=Post-Gazette.com.}} but this was stayed pending appeal three weeks later.{{Cite web |last=Kharif |first=Olga |date=April 25, 2007 |title=Vonage: Away from the Edge, for Now |url=http://www.businessweek.com/technology/content/apr2007/tc20070425_346272.htm?chan=top+news_top+news+index_technology |url-status=dead |archive-url=https://web.archive.org/web/20110418082716/http://www.businessweek.com/technology/content/apr2007/tc20070425_346272.htm?chan=top+news_top+news+index_technology |archive-date=2011-04-18 |access-date=May 16, 2010 |website=Bloomberg Businessweek}} On November 19, 2007, Vonage agreed to pay $120 million in damages{{Cite web |last=Thomson |first=Iain |date=November 19, 2007 |title=Vonage owes $120m after court failure |url=http://www.vnunet.com/vnunet/news/2203710/vonage-owes-120-million-court |url-status=dead |archive-url=https://web.archive.org/web/20080118194836/http://www.vnunet.com/vnunet/news/2203710/vonage-owes-120-million-court |archive-date=2008-01-18}}. VNUnet.com. to Verizon. In other patent lawsuits, by December 2007, Vonage was ordered to pay $80 million to Sprint Nextel{{Cite web |last=Bangeman |first=Eric |date=October 8, 2007 |title=Vonage, Sprint settle patent dustup for $80 million |url=https://arstechnica.com/news.ars/post/20071008-vonage-sprint-settle-patent-dustup-for-80-million.html |access-date=2010-03-13 |website=Ars Technica}} and $39 million to AT&T Inc.{{Cite web |last=Eddy |first=Nathan |date=December 26, 2007 |title=Vonage, AT&T Agree On Patent Lawsuit Settlement |url=http://www.crn.com/networking/205203144 |url-status=dead |archive-url=https://web.archive.org/web/20080124013619/http://www.crn.com/networking/205203144 |archive-date=2008-01-24 |access-date=2010-03-13 |website=Crn.com}} Another lawsuit with Nortel resulted in no monetary damages.{{Cite web |last=Khandelwal |first=P. |date=December 31, 2007 |title=Vonage, Nortel settle patent dispute |url=https://www.reuters.com/article/idUSWNAS541520080101 |access-date=2010-05-14 |website=Reuters}}
2009 customer service settlement
In November 2009, Vonage agreed to an assurance of voluntary compliance (AVC) with 32 states. The settlement followed an investigation into complaints about the marketing of Vonage services, including confusion about availability and cost, along with advertisements involving "free" services, money back guarantees and trial periods. The consumer protection agreement also addressed complaints that some consumers were prevented from canceling the Vonage service. In the settlement, Vonage agreed to pay the seven investigating states $3 million for costs, issue refunds to complainants dating back to January 2004, and change several business practices in regard to advertising and customer retention.{{Cite web |date=November 19, 2009 |title=Vonage Agrees to $3 Million Settlement over its Business Practices |url=http://utilityproject.org/2009/11/19/vonage-agrees-to-3-million-settlement-over-its-business-practices/ |url-status=dead |archive-url=https://web.archive.org/web/20211122195416/https://utilityproject.org/2009/11/19/vonage-agrees-to-3-million-settlement-over-its-business-practices/ |archive-date=November 22, 2021 |access-date=May 13, 2016 |website=New York’s Utility Project}}{{Cite web |date=November 16, 2009 |title=Settlement fixes alleged hang-ups with Vonage's billing practices |url=http://www.atg.wa.gov/news/news-releases/settlement-fixes-alleged-hang-ups-vonage-s-billing-practices |website=Washington State Attorney General}}
Services
Originally known for its home VOIP services, Vonage has shifted its primary focus to business cloud communications in the mid 2010s. Vonage offers cloud communications and calling plans for residential customers and businesses, including small and medium-sized businesses, mid-market companies, and enterprises.
=Business services=
Image:Omar Javaid, CTO of Vonage, speaking at RISE 2018 conference.jpg
Vonage offers two unified communications platforms for businesses that integrate communications services, such as video conferencing, voicemail transcription, and desktop sharing, using voice as a platform. Cloud communications services allow business customers to connect with various business applications and customer relationship management (CRM) tools through a middleware technology.{{Cite news |last=Harris |first=Daniel |title=Is Vonage right for your small business? |url=http://www.softwareadvice.com/resources/vonage-business-solutions-for-smbs/ |url-status=dead |archive-url=https://web.archive.org/web/20211122190621/https://www.softwareadvice.com/resources/vonage-business-solutions-for-smbs/ |archive-date=2021-11-22 |access-date=2016-08-11 |work=Software Advice}} For business customers that rely on high quantities of voice, video and data communications in their day-to-day operations, Vonage provides quality of service over its own private Multiprotocol Label Switching (MPLS) network and via a Software Defined Area Network (SD-WAN) product.{{Cite news |last=Kerravala |first=Zeus |date=July 26, 2016 |title=Vonage's cloudy strategy is now clear |url=https://www.networkworld.com/article/953703/vonages-cloudy-strategy-is-now-clear.html |work=Network World}}{{Cite news |last=Schultz |first=Beth |date=June 28, 2016 |title=CPaaS Oligarchy in the Making? |url=http://www.nojitter.com/post/240171781/cpaas-oligarchy-in-the-making |work=No Jitter}}{{Cite news |last=Narcisi |first=Gina |date=January 4, 2016 |title=Wheeling And Dealing: Top 6 Telecom Moves Impacting The Channel In December |url=http://www.crn.com/slide-shows/networking/300079249/wheeling-and-dealing-top-6-telecom-moves-impacting-the-channel-in-december.htm/pgno/0/3 |url-status=dead |archive-url=https://web.archive.org/web/20160822185058/http://www.crn.com/slide-shows/networking/300079249/wheeling-and-dealing-top-6-telecom-moves-impacting-the-channel-in-december.htm/pgno/0/3 |archive-date=August 22, 2016 |access-date=August 11, 2016 |work=CRN}}{{Cite news |last=Furrier |first=John |date=March 7, 2016 |title=Vonage's big push at Enterprise Connect 2016 |url=http://siliconangle.com/blog/2016/03/07/vonage-big-push-at-enterprise-connect-2016-ec16/ |work=SiliconANGLE}}
=Residential services=
Residential services provide home phone plans using VoIP (voice over Internet Protocol) over a broadband Internet connection, such as cable Internet service or DSL. Features for Vonage home phone residential service includes voicemail transcription; 411 calling; caller ID; call waiting; do not disturb; and a network availability feature which forwards all calls to a mobile phone if Internet connectivity is lost.[http://www.vonage.com/features.php?refer_id=WEBHO0706010001W1&lid=main_nav_included_features "Vonage Standard Calling Features for VoIP Phone Service Plans"]. Vonage.com{{Cite news |last=Woyke |first=Elizabeth |date=December 31, 2009 |title=Vonage's Second Calling |url=https://www.forbes.com/forbes/2010/0118/technology-internet-phone-cellular-vonage-second-calling.html |work=Forbes}}{{Cite news |last=Wortham |first=Jenna |date=October 5, 2009 |title=Vonage releases calling apps for iPhone and Blackberry |url=http://bits.blogs.nytimes.com/2009/10/05/vonage-releases-calling-apps-for-iphone-and-blackberry/ |work=Bits, NYTimes.com}}{{Cite news |last=Furchgott |first=Roy |date=August 5, 2010 |title=Vonage App calls Facebook Friends Free |url=http://gadgetwise.blogs.nytimes.com/2010/08/05/vonage-app-calls-facebook-friends-free/ |work=Gadgetwise, NYTimes.com}} Many of Vonage's residential products offer international calling plans.{{Cite news |last=Nay |first=Josh Robert |date=October 2, 2014 |title=Vonage's Second Calling |url=http://www.trutower.com/2014/10/02/vonage-extensions-app-home-plan/ |work=TruTower}}
=Service requirements=
Image:Vonage missed call notice.jpg
Vonage customers must have a broadband Internet connection, such as cable Internet service or DSL, through an Internet service provider (ISP). To initiate subscription a customer must provide a billing and shipping address in the country of service. Vonage supplies an analog telephone adapter which connects a customer supplied standard analog telephone to the Internet and the Vonage service.[https://support.vonage.com/app/answers/detail/a_id/714/related/1 "What do I need to get service with Vonage?"] Vonage.com Residents of the U.S., Canada, and the UK may subscribe to Vonage by credit card from their respective country, but the Vonage adapter can be connected to the Internet anywhere.
Usage is generally referred to as "unlimited", though Vonage has different national "fair use" policies limiting Vonage-to-phone calls to a few thousand minutes per month in the UK,[https://www.vonage.co.uk/uk-fair-use-policy/ "UK Fair Use Policy"] {{Webarchive|url=https://web.archive.org/web/20110829225541/https://www.vonage.co.uk/uk-fair-use-policy/ |date=2011-08-29 }}. Vonage.co.uk. Canada,[https://www.vonage.ca/fair-usage-policy/ "Fair usage policy"] {{Webarchive|url=https://web.archive.org/web/20190703232248/https://www.vonage.ca/fair-usage-policy/ |date=2019-07-03 }}. Vonage.ca. and U.S.[https://www.vonage.com/reasonable_use_policy/?lid=footer_reasonable_use "Reasonable use policy"]. Vonage.com. Evidence suggests that calls are limited to a length of 3 hours and 56 minutes.
=Telephone number availability=
Subscribers may choose a number in the country of the service they subscribe to for their primary line, in an area code of their choice. Subscribers can obtain additional "virtual numbers" for a monthly fee. Vonage also offers virtual numbers in Mexico, Canada and Europe. While the company supports porting a U.S. telephone number via the FCC's local number portability (LNP), not every phone number is available in every area code. Additionally, customers can transfer an existing number to Vonage, which can take up to 7 to 10 business days from the time the customer completes the Number Transfer Authorization (NTA).[https://support.vonage.com/app/answers/detail/a_id/881 Number Transfer – FAQs] Vonage.com
=Emergency calls=
Vonage offered 911 service on a VoIP platform for the first time in 2003.[http://www.vonage.com/corporate/about_timeline.php "Vonage Timeline"]. Vonage.com For 911 location services to work, subscribers must activate the 911 calling feature by registering their full address with the company. Customers are responsible for maintaining their 911 location information at all times.[http://www.fcc.gov/guides/voip-and-911-service FCC Consumer Advisory: VoIP and 911] Federal Communications Commission
If a customer dials 911 before the 911 verification is completed, the call will usually be routed to a national 911 call center where basic information must be given (name, location, nature of emergency, etc.), after which the call is transferred to a local public service answering point, like a local Police Department.[http://www.vonage.com/features.php?feature=911 "Vonage 9-1-1 dialing"] {{Webarchive|url=https://web.archive.org/web/20070616181332/http://www.vonage.com/features.php?feature=911 |date=2007-06-16 }}. Vonage.com, Features. Retrieved 2010-03-30.[https://support.vonage.com/app/answers/detail/a_id/1110 "Traditional 911 and Vonage 911 Dialing"]. Vonage.com Support.
=Quality of service and equipment compatibility=
VoIP service relies upon consistent broadband-ISP uptime and VoIP-equipment compatibility with the ISP's modem. Although VoIP was initially optimized for voice, some fax equipment can be operated over VoIP,[http://www.voipmechanic.com/faxingissuesandotherdevices.htm Faxing Issues and Other Devices]. VoIPMechanic.com. Retrieved 2010-03-30.{{Cite book |last1=Hanes, David |url=https://books.google.com/books?id=mmocBBbJaa0C&q=fax+problems+voip&pg=PA130 |title=Fax, Modem, and Text for IP Telephony |last2=Salgueiro, Gonzalo |publisher=Cisco Press |year=2008 |isbn=978-1-58705-269-9 |page=130}}{{Cite book |last=Olejniczak, Stephen P |url=https://books.google.com/books?id=Og574PMpk8EC&q=fax+problems+voip&pg=PA170 |title=VoIP Deployment For Dummies |date=29 January 2009 |publisher=Wiley |isbn=9780470440056 |page=170}} but compatibility of monitored alarm systems and other devices is less certain.{{Cite web |date=November 17, 2009 |editor-last=Jones |editor-first=Paul E. |title=SIP Forum – Fax Over IP Task Group Problem Statement |url=http://tools.ietf.org/html/draft-jones-sip-forum-fax-problem-statement-00 |access-date=2010-03-30 |website=IETF.org SIP Forum |editor-last2=Salgueiro |collaboration=yes |editor-first2=Gonzalo}} Vonage offers "specially commissioned" Fax Line service.{{Cite web |title=Vonage Business |url=http://www.vonage.com/ |access-date=2025-01-27 |website=Vonage.com |language=en}} Vonage recommends customers keep a basic traditional landline dedicated to their home alarm system and use Vonage for the rest of their calling needs.{{Cite news |title=Vonage Residential {{!}} Answer {{!}} Home Alarms and Medical Alert Devices |url=https://support.vonage.com/app/articles/answer/Home-Alarms-and-Medical-Alert-Devices-1075 |access-date=2025-01-27 |work=Vonage.com}}
Vonage implements Voice over IP sending audio via RTP and signaling via SIP.{{Cite web |title=PBX SIP Trunking Service Provider & Cloud Solution |url=https://www.vonage.com/business/quality-of-service/sip-trunking/ |access-date=2019-12-20 |website=Vonage.com |language=en}}
=Charitable contributions=
In March 2023, The Vonage Foundation entered into a partnership with Girls Who Code to help provide accessible coding education opportunities to women of all ethnicities and backgrounds by sponsoring their Summer Immersion Program 2023. The program focuses on creating a more diverse workforce in the technology industry by providing virtual classes for high school STEM students for free.{{Cite web |date=2023-03-16 |title=The Vonage Foundation Partners with Girls Who Code to Expand Opportunities in Tech |url=https://www.hrotoday.com/news/womens-history-month/the-vonage-foundation-partners-with-girls-who-code-to-expand-opportunities-in-tech/ |access-date=2023-03-23 |website=HRO Today |language=en-US}}
See also
References
{{Reflist|30em}}
External links
- {{Official website|https://www.vonage.com}}
{{Finance links historical
| name = Vonage Holdings Corp.
| symbol = VG
| reuters = VG.N
| bloomberg = VG:US
| sec_cik = VG
| yahoo = VG
| google = VG
}}
{{Canadian VOIP}}
{{United States telephone companies}}
{{Telecommunications}}
{{authority control}}
Category:2001 establishments in New Jersey
Category:2006 initial public offerings
Category:2022 mergers and acquisitions
Category:American companies established in 2001
Category:American subsidiaries of foreign companies
Category:Companies based in Monmouth County, New Jersey
Category:Companies formerly listed on the New York Stock Exchange
Category:Companies formerly listed on the Nasdaq
Category:Holmdel Township, New Jersey
Category:Telecommunications companies established in 2001