Vonage Expected to Enter U.S. Wireless Market by Late 2007

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Vonage Expected to Enter U.S. Wireless Market by Late 2007

7:00 am on February 23, 2007 | Category: VoIP, Telecom Services, Internet, Wireless

Over the past few years, the name Vonage has become synonymous with a single service: inexpensive phone calls over a broadband connection. The company has recently entertained plans of expansion, however, and ultimately hopes to be far more than a pure-play VoIP provider.

The well-known broadband phone company is expected to become a Mobile Virtual Network Operator (MVNO) later this year, meaning that it will resell the wireless voice services of an established wireless carrier, but add some its own additional content to the package.

Vonage confirmed in its fourth-quarter earnings call on February 15 that it would begin selling dual-mode cellular and Wi-Fi phones under its own brand name in the second half of this year, but would not give details about any equipment or service contracts. The announcement has caused some analysts to speculate that the company would re-brand itself under the name Vonage Wireless after the new services become available.

Vonage has also expressed interest in reselling broadband internet services to its customers, which together with wireless and VoIP, would create a makeshift triple-play bundle of telecommunications services. This in turn would give the broadband phone provider a better chance at competing with established rivals in the cable sector.