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Vonage one million lines, huh?

September 06, 2005

Vonage has reached the "1 million line" landmark. This is a vague choice of words. When I link of "lines" I think of trunk lines or at least physical lines and not customers. It's doubtful Vonage truly has 1 million physical "lines" into their facility. I'm going to assume they meant 1 million customers.

Or, perhaps they did mean 1 million trunk lines for outbound PSTN dialing? That doesn't make much sense since the average inactive vs. active calls for residential concurrent phone usage is probably 12-to-1. Thus, that would mean Vonage has 12 million customers for 1 million physical "trunk lines", but there is no way they have 12 million customers.

I need to follow up with Vonage to clarify their press release, but I'm pretty sure they meant 1 million customers just looking at past customer tracking numbers. In fact, according to a January 2005 Vonage statement, Vonage said "Vonage is aiming for 1 million customers by the end of 2005, including the U.S. and the U.K". Well, I guess their 1 million customer prediction was overly conservative if they've already reached 1 million customers by the beginning of the 9th month.

And by the way, this has to be one of the shortest press releases I've ever seen.

VONAGE® ACTIVATES ONE MILLIONTH LINE

INDUSTRY PIONEER IS FIRST NORTH AMERICAN BROADBAND TELEPHONY PROVIDER TO CROSS THE MILLION-LINE MARK

Edison, NJ, September 6, 2005 – Vonage Holdings Corp., the leading broadband telephony provider, today announced it has exceeded one million lines in service on its network, a North America first.

“In a very short time, Vonage has woken up a dormant telecommunications industry and sparked a tidal wave of change; activating over one million lines is both a milestone for Vonage and the industry,” said Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corp.


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Posted by tkeating at September 6, 2005 12:31 PM

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