Beyond Broadband Voice: Vonage and EarthLink Team to Offer Wi-Fi Access23 January 2007
Vonage Holdings Corp. (NYSE: VG), a leading provider of broadband telephone service, today announced that one of its subsidiaries, Vonage Network Inc., has signed a three-year contract with EarthLink (Nasdaq: ELNK) to offer its customers Wi-Fi Internet access in select cities throughout the United States. Under terms of the agreement, Vonage will buy Internet access on a wholesale basis from EarthLink in all cities where the company will build, own and operate municipal wireless networks. Vonage will then sell its own Wi-Fi Internet service to consumers under the Vonage brand. EarthLink has become one of the leaders in the emerging municipal Wi-Fi market, having been awarded contracts in Philadelphia; Anaheim, California; Milpitas, California and New Orleans. Wi-Fi is short for wireless fidelity, enabling a person to connect his or her computer, cell phone or PDA to the Internet or another Wi-Fi enabled device, without a traditional 'wired' connection. "Giving Vonage customers greater access to affordable, high-speed Internet access makes great sense, and is another way we are working to improve the Vonage customer experience," said Mike Snyder, CEO of Vonage. "From the moment customers purchase our service, we are focused on making sure that we meet and exceed their expectations and that they can connect more easily, affordably and reliably than with any other provider." "As a leader in municipal Wi-Fi networks, EarthLink is committed to open access, which enables other companies to offer their unique services to their customers at consumer-friendly rates," said Donald Berryman, executive vice president of EarthLink and president of the ISP's municipal networks unit. "Vonage can continue to trail blaze and evolve its brand by expanding its suite of product offerings, through this agreement, in the emerging municipal Wi-Fi market." Later in 2007, Vonage plans to provide hardware, such as a wireless modem device, and other complementary software tools to customers that will be using the service as an alternative to DSL or cable modem Internet access. Customers that subscribe to this service in one of the Wi-Fi enabled cities and that wish to access the network outdoors will be able to use their laptop computer throughout the city. In the future, other services and devices, such as the next generation Vonage Wi-Fi phone, will be able to be used on these networks. "The size and scope of the potential VoIP market is vast, with mainstream consumers representing a significant opportunity," said Jeffrey Citron, Chairman and Chief Strategist of Vonage Holdings Corp. "Providing customers with access to newly-built municipal Wi-Fi networks is a perfect complement to our platform -- helping us reach a greater percentage of consumers and giving them the flexibility and mobility they want -- thus, enabling us to execute on Vonage's mission of helping people communicate when, where and how they choose." vg-a About Vonage Vonage (NYSE: VG) is a leading provider of broadband telephone services with over 2 million subscriber lines. Our award-winning technology enables anyone to make and receive phone calls with a touch tone telephone almost anywhere a broadband Internet connection is available. We offer feature-rich and cost-effective communication services that offer users an experience similar to traditional telephone services. Our Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and popular features like call waiting, call forwarding and voicemail -- for one low, flat monthly rate. Vonage's service is sold on the web and through national retailers including Best Buy, Circuit City, Wal-Mart Stores Inc. and Target and is available to customers in the U.S., Canada and the United Kingdom. For more information about Vonage's products and services, please visit http://www.vonage.com. Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage(R) is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp. About EarthLink "EarthLink. We revolve around you(SM)." As the nation's next generation Internet service provider, Atlanta-based EarthLink has earned an award-winning reputation for outstanding customer service and its suite of online products and services. Serving over five million subscribers, EarthLink offers what every user should expect from their Internet experience: high-quality connectivity, minimal online intrusions and customizable features. Whether it's dial-up, high-speed, voice, web hosting, wireless or "EarthLink Extras" like home networking or security, EarthLink connects people to the power and possibilities of the Internet. Learn more about EarthLink by calling (800) EARTHLINK or visiting EarthLink's Web site at http://www.EarthLink.net. Vonage Safe Harbor Statement This press release contains forward-looking statements relating to our relationship with Earthlink and our future deployment of products and services. In addition, statements in this press release that are not historical facts or information may be forward-looking statements. The forward-looking statements in this release are based on information available at the time the statements are made and/or management's belief as of that time with respect to future events and involve risks and uncertainties that could cause actual results and outcomes to be materially different. Important factors that could cause such differences include, but are not limited to, our history of net operating losses and our need for cash to finance our growth; the competition we face; our dependence on our customers' existing broadband connections; differences between our service and traditional phone services, including our 911 service; uncertainties relating to regulation of VoIP services; system disruptions or flaws in our technology; our ability to manage our growth; the risk that VoIP does not gain broader acceptance; and other factors described in the "Risk Factors" section of our registration statement on Form S-1, as amended, and in our subsequent periodic reports filed with the SEC. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, and therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.
Source: prnewswire
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