Saturday, August 22, 2009

Vonage Expands Its Unlimited Plan to Include Calling to Over 60 Countries

Vonage, who is desperate to turn the tide against it's churn, has announced that it has expanded it's $24.99 unlimited calling plan to include additional countries. When they first started, the plan only included unlimited calling to the US, Canada and Puerto Rico but about a year ago they added the UK and a few other cheap international destinations into the plan. Well now they have upped the number of countries, adding destinations like:

  • Argentina
  • Australia
  • Bahamas
  • China
  • Colombia
  • Czech Republic
  • Dominican Republic
  • China
  • Poland
  • Russia
  • Romania
  • Thailand
  • Turkey
  • & Many More!
There is no way that Vonage will be able to make money on these plans with some of these countries they included (some countries costs our well more than 2 cents a minute)! Their fraud department is going to have to triple in size to deal with all of the customers signing up and sending these devices worldwide. Heck, even if they manage to restrict the ip addresses to just US customers, they are still going to have a lot of customers with huge amounts of minutes used. If the call shops get a hold of these they could easily blow this plan up!

Their terms of service list anything above 5,000 minutes as more than normal residential use but 5,000 minutes to Turkey, if you figure a cost of roughly 2 cents a minute, will cost Vonage almost $100 a month... a huge loss!

Anyway you cut it, this desperate move by Vonage is a bad thing for the international calling card business! Our sales are most assuredly going to decline... how could they not... Vonage is basically giving away the call time! How is someone who wants to make a profit and not play any games supposed to compete? This probably goes down as one of the dumbest most desperate moves in the long distance business! Thanks Vonage... hope you take a huge bath with this new plan!

2 comments:

Megan said...

The unlimited international plan is neat, although not for me since I'm not much of a talker. I do make the once a month int'l call to my mom and what's worked best for me is actually TracFone. Int'l calls are the same charge as local calls and this way, I'll be paying for only the minutes I actually use (which is not much at all). The reception is always clear - no complaints.

Prepaidplans said...

Unlimited? There has to be a catch somewhere.