TMCnews Featured Article

VoIP service provider Vonage (News - Alert) announced that the company’s Board of Directors has appointed Marc Lefar as the company’s new CEO.

 

Also, the company said it has entered into a deal to raise up to $215 million in a private debt refinancing. The company will be utilizing those earnings along with some cash on hand to repay its existing debt, due on December 16, 2008.

 

Officials at Vonage said they expect these changes will help boost the company’s overall growth.

 

Lefar has been appointed in place of Interim CEO Jeffrey Citron, who took the position in April, 2007. Citron will now be acting as the Chairman of the Board and will also serve as a consultant for the company to help Vonage with its long-term strategy.

 

Vonage is a provider of Internet phone service for home, business and international calling. Some of the company’s products include Vonage V-Portal, Vonage V-Phone, Vonage ProSM, Vonage SoftPhone, and Vonage Companion.

 

Lefar started his career at Procter & Gamble, and later worked as Executive Vice President, Marketing and Value-Added Services at Cable & Wireless (News - Alert) Global.

 

Lefar also held the role of Chief Marketing Officer at Cingular (News - Alert) Wireless (now AT&T Mobility) for four years. There, he played a major role in the successful integration of AT&T Wireless and even launched the “Raising the Bar” advertising campaign, which is said to have benefited the company with several billion dollars in new revenues.

 

During Lefar’s period as CMO, AT&T Mobility increased its customer base threefold and reduced subscriber churn by nearly 50 percent. 

 

Lefar founded Marketing Insights, a technology and media consultancy, after leaving AT&T mobility. He has also worked at Verizon (News - Alert) Wireless and GTE Wireless, holding senior level positions at both companies.

 

"I believe there is no better person than Marc to lead Vonage at this time. He possesses a wealth of telecom experience and a strong mix of strategy, finance and operating skills. His marketing expertise is second to none,” said Citron, in a statement.

 

Citron added: “The Board believes he will bring a fresh perspective to addressing the opportunities and challenges ahead and will help the Company to realize future growth and profitability.”

 

“Jeffrey and the talented Vonage team have helped to change the way people think about communication,” said Lefar, commenting on his appointment. “Moving forward, we will continue to improve the customer experience from end to end. A friendly user experience combined with meaningful, intuitive features will accelerate growth and improve loyalty. ”

 

Citron concluded: “We believe this arrangement will eliminate much of the uncertainty surrounding our financial prospects and demonstrates our commitment to enhancing the long-term value of our business.”

 

Vonage will be rolling out its Pro bundled service this week. It will be mainly targeting digital-savvy customers, referred to as “prosumers.”

 

Vonage Pro will enable users to stay connected whether using their main phone or via their PC using Vonage’s SoftPhone client, Vonage Companion. The service includes 25 Vonage Visual Voicemail messages.

 

“By combining the much-talked-about Vonage Companion with a user’s home phone, Vonage is empowering customers to connect in a personal way, without boundaries,”  Lefar added.