Vonage opens SIP credentials?

February 7, 2006

A source informed VoIP & Gadgets Blog that Vonage plans to open up their SIP credentials to enable users to configure their own SIP softphones and SIP hardphones to work with the Vonage service at no additional charge. Today Vonage still has kept the SIP credentials "closed" preventing users from using their own SIP devices with the Vonage service. One of the main reasons why Vonage has kept the SIP credentials "closed" is that they charge $9.99/month for their SIP softphone client, which then gives you access to your "personal SIP credentials". It comes with 500 minutes along with a different SIP URI and PSTN number than your main Vonage phone number. The obvious question is why would Vonage do an about face, open up the SIP credentials and start giving away SIP credentials access for "free" when they curerntly charge for them?

According to the source, he stated that Vonage doesn't make that much revenue on softphone subscribers. But he stated the main reason for the about face is that Vonage is starting to feel strong competition from the MSOs/cable companies, Packet8, SunRocket, and the other VoIP broadband players. He also pointed out that several Vonage competitors already offer SIP credentials, including Broadvoice, SIPgate, and others.

People are looking to leverage the IP phones they already have with their VoIP service provider. Why wouldn't Vonage want to leverage the millions of Cisco IP phones and other SIP-based hardware phones out there? Additionally, Asterisk is a very popular open-source IP-based phone system that many Asterisk users have configured with SIP trunks for outbound termination. Vonage is shooting themselves in the foot by forcing the Asterisk community to use Vonage's competitors for PSTN termination.

It's worth mentioning that another reason why Vonage hasn't opened up their SIP credentials is "fraud". That is, how does Vonage prevent its users from openly sharing their SIP credentials with others? There are ways of ensuring that users don't abuse an open SIP credential system. You could monitor usage patterns and look for abuse or you can do something similar to what BroadVoice does - they charge the user 3.9 cents per minute if more than one simultaneous outbound call is active using the same set of SIP credentials.

The source summed up his thoughts when he stated, "If Vonage wants to continue to build their customer numbers and retain the ones they have, then they need to continue to innovate. Offering SIP credentials to users is a perfect way to ensure the loyalty of 'techies' and 'teenagers' that also often recommend a VoIP service provider to their parents and friends."

As for a time-frame when Vonage would open their SIP credentials he claimed it would happen at the end of 1Q.



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» Vonage opens SIP credentials? from TechnoMagicians Weblog
Its about time Vonage and others like them get a clue. Although its likely too late for me as ... [More]

Tracked on February 7, 2006 8:19 PM

» Vonage: Let’s have a SIP folks! from ZeBlogs
Vonage might allow its users to use their own SIP phones very soon. Tom keating writes in detail about it. [More]

Tracked on February 7, 2006 9:17 PM

» Vonage may open SIP credentials from Michigan Telephone, VoIP and Broadband blog
In his VoIP & Gadgets Blog, Tom Keating has posted this bit of information: A source informed VoIP Gadgets Blog that Vonage plans to open up their SIP credentials to enable users to configure their own SIP softphones and SIP hardphones to work with the... [More]

Tracked on February 8, 2006 1:24 PM

» Vonage IPO to raise $250 million from VoIP & Gadgets Blog
Yesterday, I wrote about a source informing me that Vonage plans on opening their SIP credentials. The source also mentioned that Vonage planned on waiting to drop the $9.99/month requirement to get SIP credentials until AFTER their IPO offering since... [More]

Tracked on February 8, 2006 2:01 PM

» Vonage Developments from Gahtan's Technology and Internet Law Blog
There have been many recent posts regarding Vonage’s IPO. However, the news that I found more interesting comes from VOIP and Gadgets Blog’s posting - a source informed them that Vonage may open up its SIP credentials to enable users to ... [More]

Tracked on February 9, 2006 8:34 AM

Comments to Vonage opens SIP credentials?


  1. ouchmytoe :
    February 8, 2006 12:22 AM

    Another good example for the fact that in business, competition can only benefit the comsumer!


  1. e petersen :
    January 21, 2007 7:56 PM

    Any update/progress on this story?


  1. Josh L :
    April 28, 2007 1:04 PM

    Has anyone heard news regarding this? I would LOVE to use my own ATA box instead of the little thing Vonage gave me..


  1. Dan Koffler :
    September 11, 2007 1:04 PM

    This was obviously a false rumour as it is now 9 months after the post and they have yet to release SIP credential info.


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