Internet phone service goes mainstream as Wal-Mart Canada offers first ever VoIP offering



    Agreement with Vonage brings added credibility to VoIP industry

    MISSISSAUGA, ON, Jan. 30 /CNW/ - In a move that addresses the growing
popularity and demand for Internet phone service among Canadians, more than
100 Wal-Mart stores across the country will now offer Vonage phone service.
Vonage is the first Internet phone service to be sold in Canadian Wal-Mart
stores.
    The Wal-Mart announcement comes at a time when more and more consumers
are considering switching their home service provider. A national survey
conducted by Angus Reid and commissioned by Vonage Canada, revealed that
28 per cent of Canadians say they are likely to switch their home phone
service provider in the next 12 months. At the same time, more retailers have
begun offering Internet phone service in their stores.
    "With one of the country's most popular retailers now offering Vonage
phone service, it's clear that VoIP (Voice Over Internet Protocol) is moving
beyond early adopters towards the mass market," said Joe Parent,
vice-president of marketing and business development, Vonage Canada. "The
agreement between Vonage Canada and Wal-Mart brings together two industry
leaders to further build credibility for Internet phone service."
    Wal-Mart is the first major non-consumer electronics retailer to offer
Vonage phone service in its stores. Wal-Mart joins such consumer electronics
retailers as Best Buy, Future Shop, The Source by Circuit City, Staples
Business Depot and others to offer Vonage phone service. When combined with
its existing retail channel, Vonage is now available at approximately
1,300 retail outlets across Canada, giving it the widest retail distribution
of any third-party Internet phone service provider.
    According to Seaboard Research Inc., Canada's foremost communications
industry analysts and commentators, the Canadian telecom landscape is rapidly
changing with more and more Canadians switching to VoIP phone service.
Seaboard predicts that by 2010, close to six million Canadians are expected to
make the switch to a VoIP provider.
    "There has been a steady increase in consumer demand for VoIP phone
service," said Iain Grant, head of Seaboard Research Inc. "In two years, the
industry has grown to have more than 1 million subscribers in Canada. As the
market evolves and as more consumers become aware of the benefits of VoIP
through the efforts of companies like Wal-Mart and Vonage, the number of
Canadians making the switch will continue to increase significantly."
    Wal-Mart customers in Canada can now join the ranks of approximately
2 million subscribers worldwide who have signed up for Vonage phone service.
Customers can purchase a Vonage terminal adapter (a device which connects to
any touchtone phone) or the Vonage V-Phone (USB memory stick that turns any PC
into a fully functional phone) in any Canadian Wal-Mart store with a
Connection Centre. Vonage service can then be activated quickly and easily at
vonage.ca.
    Vonage offers flat-rate local and long distance calling, including over
14 traditional phone services (including call waiting, caller ID, voicemail
plus) with no surcharges or hidden fees. Customers can continue to use their
existing touchtone phone, keep their existing phone number where available and
generally enable the phone jacks throughout their home to work on Vonage.
Additionally, customers get access to a multitude of services unavailable with
traditional phone providers such as having voicemail sent to an email address.
    "Wal-Mart has a proud history of bringing cost-savings to Canadians when
it comes to their shopping needs," said Parent. "Now when customers go to
their local Wal-Mart store to pick up a pair of jeans, they can also pick up
Vonage phone service."

    About Vonage(R) Canada

    Vonage Canada is a subsidiary of Vonage Holdings Corp. traded on the NYSE
under the symbol VG. Vonage Canada is an early pioneer of the Canadian
Internet phone industry, setting the standard for pricing, features, call
quality and reliability for the entire VoIP category. Vonage's award winning
service is sold on the web at www.vonage.ca and through national retailers
like Best Buy, Future Shop, Wal-Mart, London Drugs, The Source by Circuit
City, Staples Business Depot/ BUREAU EN GROS, Office Depot, CompuSmart,
Visions Electronics, Telephone Booth, WirelessWave and Wal-Mart. Vonage Canada
is headquartered in Mississauga, ON. For more information about Vonage's
products and services, please visit http://www.vonage.ca or call
1-877-272-0528. Vonage(R) is a registered trademark of Vonage Marketing. VoIP
9-1-1 service has certain limitations versus traditional 9-1-1. See vonage.ca
for details.





For further information:

For further information: Duane MacDonald, For Vonage Canada, (416)
924-5700 Ext. 4043, duane_macdonald@ca.cohnwolfe.com; Patti Jordan, Vonage
Canada, (416) 907-6157, patti.jordan@vonage.com

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VONAGE CANADA

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