Vonage Shakes Up the Calling Card Industry with the Launch of New Digital Calling Card

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Provides a No-Surprises Alternative to Traditional Prepaid Calling Cards

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Oct 24, 2012, 07:00 ET

HOLMDEL, N.J., Oct. 24, 2012 /PRNewswire/ -- Nearly 20 percent¹ of international calls are made using prepaid calling cards, but according to an FCC Enforcement Advisory², these cards often come with undisclosed fees, unreliable service and higher-than-advertised rates. Vonage today launched a new product that will answer the FCC's call for a better calling card option – the Vonage Digital Calling Card.

The Vonage Digital Calling Card is a pay-as-you-go calling card alternative available online through an easy-to-use self-service website. Its rates are, on average, 75 percent lower than those offered by home and wireless carriers³ on international calls, without the hidden fees often associated with calling cards. The Vonage Digital Calling Card can be used to call locations worldwide including popular destinations such as India, Mexico, Vietnam, South Korea and the U.K. Vonage Digital Calling Card customers will receive bonus calling credits with every purchase over $5.00. For example, customers will earn $10.00 in calling credits for each $25.00 purchase they make. Customers do not need to be a Vonage home service subscriber to use the service.

"Calling card customers have filed thousands of complaints about the unsavory practices and hidden fees associated with many prepaid phone cards," said Mike Tempora, Senior Vice President of Product Management at Vonage. "The Vonage Digital Calling Card provides customers with a convenient alternative that allows them to make calls over the reliable Vonage network at great low rates with no surprises."

Users of the Vonage Digital Calling Card get the benefit of reliable service over the Vonage network without connection fees, account maintenance fees, minimum monthly charges or the hassle of going to a store to purchase a prepaid calling card.

The Vonage Digital Calling Card continues the company's tradition of providing international calling solutions that meet a wide range of customer needs. It follows a series of barrier-breaking solutions launched by the company including the Vonage World Mexico Sin Limites plan, which offers flat-rate unlimited⁴ calling to all phones in Mexico, including mobiles; Vonage Extensions™, which allows customers to extend their home calling plan to their mobile phones; and Vonage Mobile®, a free app for iPhone® and Android™ that lets users talk and text worldwide for free with anyone else who uses the app.

For more information about the Vonage Digital Calling Card and the company's full suite of domestic and international calling solutions, please visit www.vonage.com.

¹Vonage proprietary data, March 2012

²FCC Enforcement Advisory (www.fcc.gov/document/fcc-enforcement-advisory-prepaid-calling-cards)

³Based on per-minute rates to the top 50 countries called. Comparison reflects Vonage calling card rates based on a $25 purchase and $10 bonus credit versus published rates of leading home phone and mobile carriers and assumes an equal split between calls made to landlines and mobiles.

⁴Unlimited calling is subject to Vonage's Reasonable Use policy. See www.vonage.com for details.

After six months of inactivity, a non-usage fee applies. See Terms of Service for details.

About Vonage
Vonage (NYSE: VG) is a leading provider of communications services connecting individuals through cloud-connected devices worldwide. Our technology serves approximately 2.4 million subscribers. We provide feature-rich, affordable communication solutions that offer flexibility, portability and ease-of-use for both landline and mobile phones. Our Vonage World plan offers unlimited calling to more than 60 countries with popular features like call waiting, call forwarding and visual voicemail —for one low monthly rate. Our Vonage Mobile app is a free downloadable app for iPhone® and Android™ that lets users talk and text worldwide for free with anyone else who uses the app. Vonage's service is sold on the web and through regional and national retailers including Wal-Mart, Best Buy, Kmart and Sears, and is available to customers in the U.S. (www.vonage.com), Canada (www.vonage.ca) and the United Kingdom (www.vonage.co.uk).

Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage® is a registered trademark of Vonage Marketing LLC, owned by Vonage America Inc.

To follow Vonage on Twitter, please visit www.twitter.com/vonage. To become a fan on Facebook, go to www.facebook.com/vonage. To subscribe on YouTube, visit www.youtube.com/vonage.

Vg-a

SOURCE Vonage