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Long Distance by Broadband InternetIf you make a lot of long-distance phone calls and have a broadband connection or are thinking of getting one, find out how you can...
People are throwing caution to the wind and ditching their local phone service in favor of an offering from an
Internet phone startup called Vonage.
Until about 18 months ago, Internet calls meant tinny, ham-radio like connections over PC microphones and speakers. Calling on the Net largely was the province of hobbyists who gladly put up with the jittery voice quality for the chance to beat the system, make free calls and cultivate a pioneering spirit. But technological advances and broadband's growth have made calls on the Net, or Internet-like private networks, roughly equivalent to traditional phone service. "It's beginning to transition from something only a real Internet-savvy person would do, into something ordinary folks can do." The number of U.S. households making Internet calls with standard phones is expected to grow from about 100,000 today to 4 million in 2007. There is a catch: You generally need to already have a broadband connection, which costs about $40 a month. The number of such cable modem and phone company DSL lines is projected to double to about 40 million in 2007. In the United States, Internet phone calling has been slower to develop. A handful of statups , such as Vonage, offer services that lets customers plug their traditional phones into company supplied adapter, which, in turn, hook into any broadband line.
The big market shake-up is expected to come from heavy by the cable industry, which has an existing marketing customer base and can bundle phone with TV and Internet services. Vonage was the first company to leverage the technology with a nationwide offering last year. Besides its $29.99 all-you can-call service, it offers a $24.99 plan with 500 minutes of long-distance.
If you make a lot of long-distance phone calls and have a broadband connection or are thinking of getting one, find out how you can...Vonage has 34,00 subscribers, is adding 1,400 a week and expects to reach 1 million by 2006.
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