Vonage (News - Alert) customers will higher download rates by the end of this year under a new service that the Holmdel, New Jersey-based company announced today.
Under “Vonage Broadband,” the company will offer digital subscriber line, or DSL, with maximum download speeds of 3.0 or 6.0 megabits per second to people and small businesses, officials said.
According to Vonage Chairman Jeffrey Citron, the new service could give the company a leg up in an increasingly competitive market that sees single providers offering customers inclusive packages for telephone and Internet services.
“Vonage Broadband enables us to respond to the demand we hear from customers who prefer the Vonage brand,” said Citron, who also serves as the company’s chief strategist and interim chief executive officer.
Vonage said it developed the new service with San Jose, California-based Covad (News - Alert) Communications Company, a provider of integrated voice and data communications. Vonage Broadband will use Covad’s DSL network.
Covad’s president and chief executive officer, Patrick Bennett, said he expects the collaboration with Vonage to raise his company’s profile.
“This new strategic relationship enables us to demonstrate the reliability and award-winning performance of our nationwide broadband network to Vonage’s large and savvy customer base,” Bennett said.
Vonage has about 2.5 million subscribers to its broadband telephone services, according to the company’s Web site.
In announcing its first quarter earnings this morning, Vonage said revenue grew 15 percent to $225 million, while net losses totaled $9 million, or 6 cents per share.
Citron credited some of those results to targeted marketing.
“Our business fundamentals are improving and for the second consecutive quarter we reported positive adjusted operating income,” he said. “Additionally, we have taken a significant step toward restructuring our convertible debt.”
Michael Dinan is a TMCNet Editor. To read more of his articles, please visit his columnist page.