Vonage Explains $3.99/month retention plan

June 25, 2007
It's only fair that I include Vonage's public relations response to my Vonage post on Friday where I discussed Vonage's $3.99/month for 1-year retention plan. :

Hope all is well. I saw your post on Friday about Vonage and just wanted to offer more information about the $3.99/month plan. Vonage has had this package for several years now (at least three, possibly four years), so this is by no means a new plan, and it’s used exclusively as a short-term retention promotion. There are fewer than one percent of customers on this program, so it does not significantly impact the company’s financial condition.

I was a little surprised that this offer has existed for so long. I don't recall being offered this plan when I canceled my Vonage service. There must be some magical phrase that the customer has to say in order to trigger something in the call script that causes Vonage retention rep to offer you the $3.99/month. If I recall, I was pretty adamant about canceling, so that may have pre-empted this particular offer.

I wonder if you keep calling to cancel every year when this $3.99 promo expires if they'll keep offering you $3.99/month? That'd work out to only $47.88 per year for phone service! Now that is a pretty sweet deal. I remember when my monthly phone bill was more than that.

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Comments to Vonage Explains $3.99/month retention plan


  1. Matt :
    June 25, 2007 1:56 PM

    I'd be interested to know if this is a "loss leader" or whether they can still make their millions in profit were they to place all customers on this plan for good.

    I've reviewed a number of providers, and this kind of practice seems to be commonplace, though I've been offered the "retention plan" with a lot less hassle!


  1. Andrew Darlow :
    June 27, 2007 4:06 PM

    That is a great offer. There are a number of VoIP services that offer unlimited service in the USA for USA customers for about $200 for 2 years or $99 for a year. I have been using ViaTalk for over a year and have been very impressed by the call quality. At $200/24 months, that's about $7 per month. I just don't see the advantage of Vonage. I just noticed that sunrocket.com offers a year for $99.

    Here is my review of the experience I had switching. I particularly like the fact that all the taxes and fees are included (or possibly not applicable with VoIP).

    http://imagingbuffet.com/?p=78

    All the best,

    Andrew Darlow
    Editor, The Imaging Buffet
    http://www.imagingbuffet.com


  1. trebean :
    July 9, 2007 1:29 PM

    just called them

    19 a month and two months free


  1. Jim & Sandy Powell :
    November 7, 2007 6:15 AM

    Me and my husband had Vonage for about six months. We found out after that time that we were not happy at all and wanted to cancel. They have taken $7.97 out of my checking account for seven months. Now on the eighth month they are still taking out the money. It really is not alot of money but the point is it is not theres to take. I have been on the phone more that once trying to get to someone that will help me and all I have gotten is a big run a round. As of right this moment I have been on hold for 10 minutes. I am going to write a letter to the president of this company and see if that will get me some sort of answer or a person that can really speak. I cant even get someone to come back on the phone with me. Personally I feel that my time is worth more than this.
    Sandy Powell
    A very unhappy ex-vonage coustomer


  1. Mike :
    March 18, 2008 11:57 AM

    Hey just wanted to chime in. the "3.99" plan is not 3.99 but its 4.99 a month for unlimited inbound calls and vonagae to vonage calls... but all of your out bound calls are charged at a rate of 3.9 cents per min used. this plan is only offered for customers who are going to be holding their account maybe while on vacation or for seasonal use. it is called the Account on Hold plan.


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