New Vonage Product For Small & Mobile Businesses

This morning Vonage (VG-NYSE) has announced an Internet Telephone adaptor with a wireless router that is co-branded with Motorola (MOT-NYSE).  This one may be the first product that can have some cross-over appeal to a broader audience.  The router will make it easy for customers to use fax, telephone and Internet services at the same time.  The new VT2542 enables Voice-over-IP (VoIP) telephony and includes a 4-port wired and 802.11 b/g wireless access point for home networking connectivity. The device is available online for $59.99 After a $40 instant rebate with a $9.95 shipping and handling fee and a $29.99 activation fee.

This router can connect up to two Vonage lines, including telephone and fax via high-speed Internet and has four LAN ports and an 802.11b/g Wireless port for additional computers or other network devices.  Customers can use their Internet connection for their computer and phones at the same time (same as before) and is geared toward consumers who want the added advantage of easily setting up a secure wireless network.

With the exception of the new portable Vonage V-Phone that comes on a 256MB flash drive, this may actually be the first product that can actually appeal to broader base of small business customers looking to save money over using traditional telecom services.  This one is fully mobile with any broadband connection in the world.  If you want to review more of the specs and more of the features you can look online at the link on the Vonage web site.  The stock is actually down another 1.4% at $4.10, so right now this one is being ignored by a cautious  stock market.

Jon C. Ogg
March 14, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.