Vonage Inks First Cable Deal


Chicago -- Upstart Internet telephone provider Vonage DigitalVoice has landed
its first cable deal, signing with Armstrong Group of Cos. to offer a co-branded
flat-rate voice service to the MSO's 212,000 customers in a five-state

Armstrong subscribers will be offered Vonage's $39.99 monthly residential
premium unlimited plan, which includes free long distance within the United
States and Canada, as well as free voice mail, call waiting and call forwarding,
among other features.

Vonage will also market its $49.99 small-business unlimited plan, which also
offers free long distance to the United States and Canada, as well features such
as a free fax line, call transfer, caller-ID blocking and choice of area

Edison, N.J.-based Vonage has attracted a fair amount of press buzz in the
past year with its telephone service, which uses a broadband Internet connection
as the voice link, rather than a separate dedicated voice channel offered by MSO
telephony services.

It now offers service in 77 markets and claims more than 25,000 active
service lines.

Armstrong's territory covers parts of Pennsylvania, Ohio, Maryland, West
Virginia and Kentucky.