Summary
Vonage has launched its Vonage Mobile, a mobile application for smartphones. Currently this application can run only on Iphone, Blackberry and IPod Touch.This application will help users to make international calls at a very low price without changing their existing number. This application is launched as an alternative to the calling card. Convenience and best calling experience is an assurance by Vonage.
Analysis
Good news for people who make frequent international calls. Vonage, leading provider of digital phone service launched its first mobile application “Vonage Mobile” as a convenient alternative for calling card exclusively for smartphones. This application when downloaded by the users enables them to make international calls at a low rate through Wi-Fi or cellular networks. Vonage claims that it will help users to save calling cost up to 50%.
Vonage recently lost nearly 90,000 subscribers in the same quarter where as its competitor Conrncast gained 24% in subscriber base in the same quarter. With the launch of this service Vonage is trying to extend its roots beyond delivering VOIP over broadband. This may help them to acquire new customers, retain the old ones, and recuperate the lost subscriber and also to add to its bottom-line. Vonage can penetrate to different market segment which it could not have tapped previously. It is trying to fight competition by adding value to its services."Our new mobile app is an important step in establishing Vonage as a software technology company that enables high-quality voice and messaging across any device in any location, providing great value over any broadband network," said Marc Lefar, CEO of Vonage. Thus Vonage does not want to leave any stone unturned. As an enhancement to the service in the fourth quarter of 2009 Vonage decided to extend the ability to make unlimited calls to over 60 countries for one flat monthly fee to mobile users, giving customers the choice to pick the plan that fit them best.
This service has come up as a convenience, money saving opportunity for subscribers and a savior for Vonage. Users don’t have to compromise upon staying connected with their family, Friends and relatives who stay abroad just for some money. Users can retain their current number.The Vonage app will use the Wi-Fi connectivity of the iPhone or Blackberry to route VoIP calls to their destination--avoiding using up the precious minutes users have on their calling plans. In areas where there is no wireless network signal available, the Vonage app connects to Vonage over the cellular network instead.
However, currently only Iphone, Blackbarry and IPod Touch users among the privileged lot and can avail this facility. Others are still in the queue and have to wait till their chance comes.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
