Now that Vonage may be out the door due to the lawsuit with Verizon Skype may very well have a shot that's of course if Verizon doesn't go after them next?

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Can Vonage survive such a hit to its bottom line? They are going to have to develop alternative technologies that will allow Vonage to sidestep paying the royalties, keep increasing their customer base and somehow keep their investors happy. Seems like a tall order for a company whose is ripe for a takeover bid.

Source: Washington Post

Between low-cost VoIP telephone service, free Web-based IM, voice chat, and conference chat services, and now a plea to the FCC to open up the wireless airwaves to allow for Skype-based calling across cellular networks, the eBay-owned company has become a customer favorite and something of a renegade in the telephony industry (NOTE:  Skype is careful to point out that as they do not offer emergency calling services a la 911, they should not be considered a true telephony solution).  Whether you're an individual interested in low-cost home phone service or a business executive looking for powerful online collaboration tools and flexible voice and data services, Skype probably offers something that will pique your interest.  Let's take a closer look at Skype's services. 

Free Services All of the following is free on Skype:

• Calling other people on Skype
• Video calls on Skype
• One-to-one and group chats
• Conference calls with up to nine people
• Forwarding calls to other Skype Names

All you need is a Mac, Window or Linux computer, a PocketPC handheld, or a "computer-less" Skye phone, an Internet connection, and the freely downloadable Skype application.  While Skype-branded headsets are available for purchase, standard computer microphones and headsets generally work just fine with the service.  Using Skype via computer speakers often results in a distracting echo effect on the listener's end, and is not recommended.  Click here for more information including system requirements.

I've been using Skype BETA for Mac OS X for awhile now, primarily over my home Cable Modem connection, and it's great.  I regularly conduct text and voice chats with friends and clients, and the voice quality is almost always stellar.  Skype-to-Skype connections tend to sound the best, but even talking over Skype to someone on a cell phone set to speakerphone mode is good enough. I also regularly have conference calls over Skype with one of my clients.  Skype officially supports up to nine parties on a conference call.  Our calls tend to have four or five people on at a time, and the quality is usually excellent.  The one hitch is that we sometimes experience delays that sound like the speaker is slurring his/her words for a moment.  The more people on the call and the slower their connection speeds, the more frequent the slur-like hiccups.  Even with these occasional hitches, conference calling on Skype is a great, free alternative to traditional calling, with the added benefit of Skype's built-in text chat and file transfer services.  It's really a great tool for business in the Web age.

SkypeOut and Skype Unlimited

Skype's featured service is VoIP calling.  VoIP stands for Voice over Internet Protocol, and basically refers to routing voice calls over the Internet to connect landline phones with Web-based clients.  Skype allows you to place and receive calls using your computer, certain WiFi-capable cell phones, or a special Skype-compatible handset.   Skype Unlimited allows unlimited "SkypeOut" calling to the US and Canada for $29.95 per year.  This means that you can place calls to any phone - land line, cellular, or VoIP - from your Skype device; you do not get a phone number and so cannot receive calls with this plan.   SkypeOut is also available on a per minute basis.  Outgoing calls cost $0.021 to 30 global destinations, with higher rates applicable to some countries.  Skype Unlimited customers are charged for international calling on a per minute basis, and you can also purchase Skype credit to make calls without signing up for a yearly plan.

I used SkypeOut for a few months last year when Skype was offering a free trial of the service (the trial expired on the first of this year).  The experience was roundly excellent.  While I had to use my regular (cellular) phone line to accept incoming calls, I basically made all of my outgoing calls for free when I was near my computer and a broadband Net connection.  In fact, after the trial ended, I started using my cell phone so much more that my bill shot up and I had to up the number of minutes on my monthly contract.

At $29.95/year, SkypeOut is cheaper than other unlimited landline and VoIP plans, but there's a trade-off involved.  While SkypeOut doesn't give you a number for incoming calls, it also doesn't tie you to a physical location like other services do.  You have to be at home to use your home phone; you can be anywhere to use Skype so long as you have an Internet connection.  The emergence of portable Skype WiFi phones and open WiFi hotspots makes Skype all the more powerful and attractive to self-employed and on-the-go types. A three-month SkypeOut plan is also available for $8.85. 

SkypeIn and Skype Voicemail

For $60/year or $18/3 months, SkypeIn gives you a phone number at which to receive calls, and voicemail service to field calls you can't get to.   You can buy up to 10 SkypeIn numbers in your choice of area codes, which is nice if you want to let people far away (family, friends, regular business clients) call you without having to pay long distance charges.

Note that SkypeIn is separate from SkypeOut, so if you want to be able to receive and make calls, you'll have to sign up for both services at a total charge of just under $90 per year.   Skype Voicemail is also available as a separate service in the form of an add-on to a basic Skype account.  This is basically akin to voice Email - you can receive voice messages whether you're logged on to Skype at the moment or not.  If you're away, the messages are saved for you to retrieve the next time you log in. 

Skype to Go

Skype to Go offers discount international calling from your cell phone.  The service connects your handset to Skype's international calling service, effectively letting you make international calls at Skype rates - as low as 2.1 cents/minute - plus normal cellular minute usage for the call.  Skype to Go is only available as part of Skype Pro (see below). 

Skype Pro

Skype also offers a subscription-based service called Skype Pro, which offers "exclusive discounts, access to new Skype products and great international calling benefits" for $3/month.  Skype Pro includes free voicemail and a free Skype to Go number, and touts a discount of "more than 50%" on SkypeIn services. 

Skype Prime 

Always fantasized about running your own Psychic Friends Hotline a la Dionne Warwick in the 1990's?  Skype recently introduced a new service geared towards entrepreneurs game to offer for-free advice via voice and text chat.  Skype Prime (now in BETA testing) allows any Skype subscriber to hang a virtual shingle advertising their service and setting a per-minute fee for said services.   And, no, "adult" phone services are not allowed in Skype Prime. 

Skype Zones (BETA)

Skype is also currently Beta testing a new service called Skype Zones which lets users make Skype calls from select Wi-Fi hotspots in airports, cafes, and other public locations around the world.  According to Skype's website, some 18,000+ hotspots are currently Skype Zones-enabled, but the service only works with Windows computers at this time (PocketPC devices are not supported).  Skype Zones calling is $2.95 for two hours, or $7.95/month for unlimited usage.

Source: Telecommunications Research and Action Center. http://www.trac.org

The home security industry is rapidly evolving to accommodate new technology, like voip, but until voip is fully supported, we cannot endorse the use of a home security system on a voip line.

voip.com does have instructions on how to modify your current system, but this should only be done by a qualified individual. Should you choose to implement a security system on your voip.com phone line, you assume all risk of loss if the system fails to perform at any time.

On that page, you can type in your number and can see if it is transferable. If it is, here's how it works:

• Voip.com initiates the number transfer
• You can do all the work as you sign up. All information provided must match the information with your current provider, and you cannot cancel your old service until the number is ported. If you cancel, you will lose your number.
• Voip.com will then request to have the phone number ported over.
• The process usually takes 15 to 20 days, but can take up to 30 days some times.
• Once the number transfers, we will contact you via email to let you know you can cancel with their current provider.

According to the SMB Interest Perks Up in Hosted VoIP report, compiled in April 2007, Packet8 Virtual Office had 6,000 customers, ahead of competitive offerings from XO Communications, Cbeyond and Covad. AMI's research methodology was based on key inputs including end user surveys of SMB and mid market companies as well as briefings, data and publicly available financial statements and news releases from voice communications vendors.

"AMI Partners' recent VoIP report is a very insightful and comprehensive study of the rapidly growing market for hosted VoIP business phone services," said 8x8 Vice President of Marketing & Sales Huw Rees. "We are very pleased that our Virtual Office solution, which is based on 8x8's own technology, was one of the first hosted PBX solutions to be deployed worldwide and that it has gained significant market acceptance with more than 7,000 businesses now using the service."

Hosted VoIP phone services deliver PBX functionality as a service available over the IP network with all equipment and management hosted externally by the service provider. Monthly service charges paid for hosted telephony business services include access charges, usage charges and charges for value added features such as find-me-follow-me, integrated voicemail/email, web based call logs, etc.

The AMI Partners report claims "SMBs are getting used to doing things in a hosted fashion. They are already implementing hosted solutions for collaboration, business applications and infrastructure solutions -- e-mail, e-commerce, CRM, ERP, accounting, personal productivity, document sharing, security and backup from small innovative companies that are providing hosted solutions that can be integrated through hosted solution integration platforms like AppExchange from salesforce.com."

Offering a combination of unlimited local and long distance calling in the United States and Canada plus advanced PBX features for just $49.99 per month/extension, the Packet8 Virtual Office solution is currently being used by more than 7,000 U.S. business organizations. Virtual Office enables small and medium sized enterprises to secure distributed corporate class telecommunications capabilities for a fraction of the cost of wireline business services from traditional phone companies. Unlike comparably priced single line VoIP phone services which offer features more suited to individual residential users, Packet8 Virtual Office provides companies with complete business phone system functionality along with the flexibility to operate each extension from any geographically dispersed location with high-speed Internet access.

The Packet8 Virtual Office service includes an auto attendant, worldwide extension dialing, business class voicemail, a full featured conference bridge and ring groups, in addition to a rich variety of other business class PBX and dial tone features not normally found on premise-based PBX systems. Packet8 Virtual Office reduces an organization's total cost of ownership for telecommunications services because of its minimal initial investment combined with unlimited worldwide calling to other business extensions and Packet8 subscribers, unlimited local and long distance business calling in the United States and Canada and access to Packet8's low per-minute international calling rates to overseas wireline and mobile phone numbers.

Vonage will continue to provide digital telephone service to existing customers indefinitely by paying into escrow a quarterly royalty of 5.5% throughout the appeals process. Separately, the District Court required Vonage to post a bond of $66 million to secure Verizon's damages judgment.

Vonage is pleased that existing customers will not experience any interruption in service. The Company continues to believe it will succeed on appeal and continues to work on designing around the Verizon patents.

Vonage also continues to believe that this case is an attempt to do in the court room what Verizon could not succeed in doing in the marketplace -- which is to put Vonage out of business.

Vonage announced it will hold an investor update conference call on Thursday, April 12, 2007 at 8:00 AM ET. To participate, please dial (800) 289-0533 approximately ten minutes prior to the call. International callers should dial (913) 981-5525. The call will be simultaneously webcast and accessible via Vonage's Investor Relations website at, ir.vonage.com.  A replay of the call will be available on Vonage's Investor Relations website shortly following the webcast for two weeks.

Vonage (NYSE: VG) is a leading provider of broadband telephone services with over 2.2 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, vonage.com.

"Building a 200,000 subscriber base from scratch in a relatively short period of time demonstrates how rapidly consumers are embracing the value, simplicity and enhanced feature set of SunRocket Internet phone service," said Lisa Hook, president and CEO of SunRocket. "And while category growth has been impressive - approximately 10 million U.S. consumers subscribe to VoIP - we have barely scraped the surface in a market with more than 50 million broadband households ready, willing and able to make the switch to SunRocket."

"Mainstream consumers continue to demonstrate a strong appetite for Internet phone service; in fact the VoIP market is twice as big as it was a year ago and we predict continued strong growth going forward," said Stephan Beckert, Director of Research at Telegeography. "Internet phone service providers that offer compelling prices, products and features are continuing to gain landline converts."

In the coming months SunRocket will leverage the industry's only all-IP network to deliver a host of compelling home-centric communications products, services and features to consumers nationwide. At the same time the company will continue to lead the charge on issues vital to industry growth and maturity, such as:

• Quality of Service (QoS) - By utilizing the industry's only all-IP network and partnering with industry leaders to better monitor and improve service quality, SunRocket is delivering high-quality, reliable communications to members.
• VoIP Peering - Through relationships with key industry peering partners, SunRocket will continue to spearhead efforts for an open, innovative peering model that offers a viable alternative to the closed, outdated legacy PSTN cost-per-minute peering approach. By exchanging voice traffic directly with other VoIP providers, SunRocket realizes tremendous efficiency gains and can deliver enhanced quality of service for customers communicating via internet telephony.
• Next Generation Enhanced 9-1-1 (E911) - SunRocket is the only residential Internet phone service provider to fully account for E911 from the beginning. Through ongoing work with organizations and partners committed to next generation E911 - and by leveraging our all-IP network - SunRocket will remain an active leader in delivering full emergency communications services from end-to-end.

"Over the past year SunRocket has successfully assembled the category's most dynamic and sound management team, featuring leaders with a proven track record for scaling a business and carving a sustainable path to profitability," added Hook. "With all of these pieces in place and a steadily growing market, SunRocket continues to stand out among a small handful of entrants communicating the value proposition of VoIP to consumers in cities and neighborhoods throughout the country."

The agreement, which represents 8x8's first U.S. government contract, calls for the installation of 15 Packet8 Virtual Office Unlimited Extensions at the U.S. Army's Yuma, Arizona MCAS Cannon Field P-111 site. Virtual Office Unlimited Extension service provides users with unlimited local and long distance calling in the U.S. and Canada along with hosted IP PBX calling features such as auto attendants, conference bridges, extension dialing, business class voicemail, music on hold, ring groups and more.

"We are very pleased that an organization as selective as the U.S. Army chose our Virtual Office VoIP hosted PBX phone service above other traditional landline and IP based telecommunications solutions," said 8x8 Vice President of Sales and Marketing Huw Rees. "As with the majority of our business customers, this organization places a high priority on reliability, scalability and mobility, as well as technical support expertise. Their selection of Virtual Office is a testimony to the sales, customer support and service excellence 8x8 has committed to providing in the development and delivery of Packet8 VoIP phone services."

Over 6,000 U.S. based companies ranging in size from three to 250 employees now subscribe to the Packet8 Virtual Office solution, which combines unlimited local and long distance calling in the United States and Canada with advanced PBX calling features. Unlike comparably priced single line VoIP phone services which offer features more suited to individual residential users, Packet8 Virtual Office provides companies with complete business functionality along with the flexibility to operate from numerous geographically dispersed locations. The service includes auto attendants, extension dialing, business class voicemail, a full featured conference bridge and ring groups, in addition to a rich variety of other business class PBX and dial tone features not normally found on premise-based PBX systems.

With these International Virtual Numbers, Packet8 residential and business subscribers can create a "virtual presence" for themselves in the following locations -- U.K., France, Netherlands, Norway, Sweden, Finland, Italy, Ireland, and Denmark. By adding a Virtual Number from these locations to their Packet8 service, subscribers enable individuals based there to reach them via a local vs. an international call. Businesses, in particular, can benefit from using an International Virtual Number to open virtual sales offices overseas and answer calls from their U.S. based location.

"We are pleased to offer this valuable additional service to our subscribers," said 8x8 Vice President of Sales and Marketing Huw Rees. "Features like International Virtual Numbers further differentiate Packet8 VoIP phone service from traditional plain old telephone service by providing cost savings and increased flexibility."

Packet8 subscribers can add an International Virtual Number to the service for $9.99 per month with a one-time $9.99 activation fee. Additional information about Packet8 International DIDs can be found at: packet8.net/about/features.asp.

The Packet8 Tango® Video Terminal Adapter (VTA) takes the concept of traditional analog terminal adapters (ATAs) one step further with the addition of advanced H.264 video, allowing for significantly better video quality compared to H.263 at the same bandwidth. The Packet8 Tango is fully SIP compliant and interoperates with 8x8's previous generation videophone, the Packet8 DV326 as well as its video soft phone, Packet8 Softalk™. This sleek-looking 8 1/2" x 5 1/2" x 1.38" free standing device incorporates a built-in, high resolution 5" LCD color display and 180 degree rotating CCD camera to deliver advanced full-motion video at up to 30 frames per second along with crisp, delay-free audio.

"The Packet8 Tango VTA received rave reviews during its debut at the 2007 Consumer Electronics Show," said 8x8 Vice President of Marketing & Sales Huw Rees. "8x8's goal in developing this device was to create a very stylized, consumer friendly product that delivers outstanding video communications at an affordable price. Additionally, by enabling users to plug their regular home phone into the device and make voice-only Internet calls as well as video calls, we expanded the functionality beyond that of competitive offerings."

Key features of the Packet8 Tango include:

• Icon-based Graphic User Interface
• Three-way videoconferencing
• Interoperability with other Packet8 videophone services, including Softalk™ Basic and Office softphone
• Built-in router and USB port
• 180 degree rotating camera (250K pixels)
• 5-inch Color TFT-LCD display
• Support CIF (960 x 234 pixels) and QVGA
• External RJ11 FXS port
• Two Ethernet interfaces (1 WAN; 1 LAN)
• 100 number phone book
• 300 number call log
• Caller ID display
• Status icons
• LED indicators (Service, Power, Message & E911 alert)
• Navigation keys (Up, Down, Left, Right, Menu)
• Hot keys (Phonebook, Network Status, Configuration, Settings)
• Remote Update Firmware
• Remote surveillance mode

The Packet8 Tango weighs just 1.5 lbs. and folds completely flat. A soft neoprene carrying case is also included to further facilitate portability. The device is initially available in removable pearl white and graphite faceplates, though additional faceplate colors are planned for availability in the near future.

The Packet8 Tango is currently available for $249.99. The accompanying Packet8 monthly phone service plan costs $24.99 per month and includes unlimited local and long distance voice calling to any phone in the U.S. and Canada, unlimited worldwide in-network voice and video calling to other Packet8 subscribers and all Packet8 advanced residential calling features.

The expanded referral program is the product of a new business relationship with Hallmark Insights, a wholly owned subsidiary of Hallmark Cards, Inc. that delivers personalized awards redeemable for gift cards and gift certificates to hundreds of leading retailers, catalogs, restaurants, travel providers, entertainment companies and more.

"We're truly excited about our expanded RocketRewards program - and members should be too - because there are now 350 amazing new reasons for members to share their positive SunRocket experience with friends and family," said Denise Simpson, SunRocket Senior Vice President, Marketing. "Our passion for delivering a uniquely compelling member experience doesn't end once consumers sign-up, and SunRocket's new and expanded RocketRewards program reflects a sincere appreciation for our members' loyalty and enthusiasm for our service."

In addition to redeeming referral points for gift cards and certificates, members can also continue to utilize referral points towards the purchase of hardware, such as cordless home phones.

"We are pleased to work with SunRocket in providing their members an unprecedented level of freedom and flexibility to choose from a diverse range of our participating merchants," said Maria Bavender, Vice President of Sales at Hallmark Insights.

For existing SunRocket members who wish to take advantage of the expanded RocketRewards program, the process is simple:

Refer interested family and friends to SunRocket have them click on the referred by a friend link, enter one of your SunRocket phone numbers and sign up for the service (Your first 8 referrals qualify for 25 RocketRewards points each and your next 10 qualify for 10 points.

You can view referrals by logging into the online Member Account Manager and clicking on "Rewards" (Your points can be redeemed after the member's referral has been a customer for at least 31 days).

Each member will receive his or her SunRocket reward via e-mail and can click on the link in the email to redeem gift cards and certificates to over 350 popular merchants.

"DECT 6.0 offers tremendous advantages over existing cordless handsets and begins setting the foundation for future SunRocket home-centric communications services," said Rob Chandhok, chief product officer at SunRocket. "Now any consumer with a broadband Internet connection can simply purchase this multi-handset cordless phone and activate SunRocket service to enjoy inexpensive, interference-free, digitally clear Internet telephone service."

With an integrated router, users no longer require a separate Internet phone adapter, as full VoIP capabilities are already built in. In addition, because the DECT 6.0 phone operates in the 1.9 GHz frequency band, defined by the FCC specifically for cordless phones, the DECT phone avoids interference problems associated with home networks and other wireless devices operating in the 2.4 GHz and 5.8 GHz frequencies-such as Wi-Fi, microwave ovens and garage door openers.

The E6501S, with its DECT 6.0 technology, also enables:

• An expandable design for up to five total handsets;
• Communications range of more than 650 feet; and
• SIP-compliant VoIP platform.

"The combined savings, quality, simplicity and enhanced features of the American Telecom DECT phone bundled with SunRocket means that mainstream consumers can now enjoy full VoIP functionality in a single device and seamlessly transition from their existing home phone service," said Bruce Hahn, CEO of American Telecom Services.

Retail customers will be able to easily activate the multi-handset cordless unit for Internet phone service by choosing from any of SunRocket's offerings, including its pioneering all-inclusive $199 Annual Edition-which delivers unlimited free calling throughout the United States, Canada and Puerto Rico, enhanced voicemail, over a dozen free built-in calling features, enhanced 911 calling, plus the option to keep their existing phone number.

The three day conference, to be held at the Palms Casino Resort in Las Vegas, will feature presentations by over 125 companies in a variety of industries, including retail, semiconductors, technology hardware, software, IT services, communications, media and healthcare. Additional details about the conference can be viewed at: brileyco.com.

These same media reports overlooked Vonage's strong balance sheet and contingency plans for maintaining uninterrupted operations.

"It is wrong and irresponsible to presuppose either the outcome or the impact this litigation would have on our business," said Mike Snyder, Vonage's chief executive officer. "First and foremost, we are confident we have not infringed on any of Verizon's patents and, in any case, we believe the Verizon patents are invalid."

Snyder continued, "Nevertheless, our financial reserves would allow us to continue normal operations regardless of the outcome. In addition, we are confident that regardless of how this litigation is ultimately decided, Vonage's customers will see no change whatsoever to any aspect of their phone service."

Vonage intends to vigorously fight this frivolous lawsuit and expects to win. The company is confident it will be vindicated and, in the process, Verizon's lawsuit will be exposed as a transparent attempt to stifle one of its most successful competitors.

As the leading provider of broadband telephone services in the U.S. and based on Vonage's current financial position it is well positioned for future growth and success. Vonage's accomplishments in the past year continue to validate our business strategy and the strength of the company. These include:

• 19 consecutive quarters of double digit revenue growth
• Doubled revenues to $607 million in 2006 alone
• Adding nearly 1 million net subscribers and growing

Vonage's nomadic E911 solution gives customers the ability to reach a Public Safety Answering Point (PSAP) or 911 centers, through the dedicated 911 network infrastructure. With Vonage's nomadic E911 solution, a customer's call is automatically routed to the appropriate 911 center, with the caller's registered street address and telephone number appearing on the dispatchers screen -- regardless of where or what exchange they are calling from. Vonage will continue to turn up and test new PSAPs that are VoIP-ready every day.

Since December 15, Vonage has equipped 50 locally-run emergency call centers across the U.S. with E911 -- bringing the total number of calling centers with emergency 911 service to more than 6,600.

"Today more than 2 million of our U.S. subscriber lines have full E911 capability, which is a tremendous step for Vonage," said Vonage CEO Mike Snyder. "Vonage will continue to work with the FCC, regulators, Congress and public safety officials until PSAPs across the nation are equipped with E911."

V-Access provides an access number to make calls to any Vonage phone number (or an 800-number) without paying long distance or international fees. With V-Access, callers do not need to have a Vonage line to call a Vonage number (or an 800-number) for the price of a local call. The feature is available to anyone.

"We wanted to make sure that every Vonage customer and their loved ones can enjoy the savings of Vonage wherever they go," said Mike Snyder, CEO of Vonage Holdings Corp. "Once again, we are proving that Vonage goes above and beyond the traditional phone carriers by offering our customers and their families another great, inexpensive way to stay in touch while on overseas business trips, study abroad programs or just vacation."

Vonage subscribers (or anyone else) can take advantage of V-Access by visiting the "Features" section at vonage.com and clicking "V-Access." With a couple of clicks in the "Find an Access Number" box, anyone can obtain an available access number that will enable them to avoid long distance and international calling charges. Then make a call with a V-Access number by following these steps:

1. Dial the Local access number.
2. Dial the Vonage phone number or 800-number.
3. The call is connected without incurring long distance or international charges.

"As more and more businesses learn about the features and benefits of VoIP phone solutions, established and respected solution providers like World Telecom Group become increasingly influential sources of information and referral," said 8x8 Vice President of Marketing & Sales Huw Rees. "8x8's partnership with World Telecom Group will help broaden Packet8's visibility in the expansive SMB arena while providing its agents with an opportunity to offer customers the most robust and affordable business VoIP phone service available today."

WTG's agents offer a wide range of telecommunication solutions including local and long-distance telephone, data and internet services and equipment. As a Packet8 master reseller partner, WTG agents will expand their portfolios with Packet8 residential and business VoIP phone services, including the Virtual Office hosted IP-PBX system, now the leading small business VoIP phone solution with more than 5,000 companies subscribing.

"We are very excited about having the excellent Packet 8 products for our Agent Partners to sell," said World Telecom Group President & CEO Vince Bradley. "It is a perfect fit with so much convergence in the industry going on today. This relationship will enable us to embrace that convergence and penetrate many affinity groups and other opportunities."

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."