Is Vonage’s unlimited international calls deal a threat to Skype?
Voice and messaging service provider Vonage is launching a deal offering unlimited international calling for $24.99 a month. But it may not do enough to challenge rival services such as those provided by Skype.
Like Skype, Vonage offers VOIP services which route calls through the Internet rather than through phone networks. It’s new World Mobile service is available for the BlackBerry, iPhone and iPod touch. The latter will need a microphone/earphone adaptor and of course only work via Wi-fi, while the first two can work through the data services on cellphone networks.
The key selling point for the firm is that it does not require the user to buy any international calling card or type in special prefixes or pin codes. Instead they simply launch a Vonage app and then make the call. The service might be particularly popular with customers who have friends or family overseas. However, it’s unlikely to take much business away from the calling card market as those products are often aimed at people on lower incomes who are unlikely to have a BlackBerry or iPhone contract.
It’s worth noting that while placing the call, users will rack up domestic minutes with their main provider (unless using Wi-Fi) and thus may have to pay extra depending on their service plan.
At first glance, there doesn’t seem any reason why people would use the Vonage service rather than Skype, which charges $12.95 for unlimited international calling. Vonage is, however, offering a $10 discount to existing domestic customers which makes the price a bit more competitive.
Vonage also covers 60 countries, 20 more than Skype. Among the extra countries covered by the Vonage deal are Brazil, India, Mexico, and several Caribbean countries. It also covers all of Russia, whereas the Skype deal is limited to Moscow and St Petersburg.
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December 25th, 2009
Skype unlimited calls only include 40 countries while Vonage flat fee includes 73 countries including calls to mobile. With Skype, you call from a PC whereas with Vonage, you can either call from a landline or from your cell phone (iPhone and Blackberry for now but more phones will come). And last but not least, call quality via Vonage is superior to Skype which sounds like you call from a tin can with constant disconnection. On the other hand, Vonage call quality overseas whether it is from a landline or from a cell phone is the same as the old POTS telephone.
December 25th, 2009
No, Vonage is not a threat. I like Vonage, but as you point out in the article, Skype is still cheaper. Equally important, I find Skype to be a whole lot more portable. I use Skype with both hardware (i.e., a physical phone) and software (i.e., the typical Skype download). It’s extremely convenient.
So, at half the price and more flexibility, Skype wins and is the reason I’m no longer a Vonage customer. Perhaps more importantly, I do not need unlimited international calls, so my monthly Skype charges are just $2.95. You can’t beat that price, really.
December 26th, 2009
No Need For Vonage World Mobile
If one is already subscribed to Vonage World, it can easily be extended to any cell phone (regular and smart phones) without subscribing to Vonage Mobile or Vonage World Mobile, thus saving $14.99 per month. Cellular minutes are not used if one’s cell phone carrier is AT&T, Verizon, T-Mobile (free unlimited calls to and from favorite numbers) or Sprint/Nextel (free incoming calls). Just install a Call Bridge/Call Back switch on the Vonage World line and place unlimited air time and long distance calls to 60 countries and even share with family, friends, associates, etc. Also the use of the Vonage World line is not restricted to USA residents only. Land lines and some cell phones in the 60 countries can also place the same unlimited calls.
January 13th, 2010
Please can you rename the countries I am allowed to talk with withw phone vanage?
January 13th, 2010
Can I talka to Somalia ?
February 23rd, 2010
I have a question: do people i call in Europe pay extra for my calls? Do they also need a vonage?