RingCentral vs Vonage

2021. Ericsson to acquire cloud communications company Vonage for $6.2B



Ericsson, an international networking company, has made the strategic decision to embrace modernization by acquiring cloud communications company


2019. Avaya partners with RingCentral to provide cloud offering


After extensive deliberation regarding sale and merger possibilities, Avaya has recently announced a significant strategic partnership with a $500 million contribution from RingCentral. Avaya, having emerged from a bankruptcy filing in 2017, now faces increasing competition from industry giants such as Microsoft Corp and Amazon Web Services. These competitors provide comparable communication services through software deployed within cloud data centers—an area where Avaya has encountered challenges, unlike RingCentral, which is a key player in the field. As part of the agreement, Avaya will leverage RingCentral's expertise in cloud technology to offer a new comprehensive solution. Both companies will contribute funds towards the sales and marketing efforts of this cloud-based product.


2018. Vonage acquired cloud-based contact center startup NewVoiceMedia



Vonage, a cloud-based unified communications provider, has completed the acquisition of NewVoiceMedia, a UK startup specializing in cloud-based contact center solutions, for a cash sum of $350 million. This strategic move by Vonage aims to expand its service offerings and increase profit margins across a broader range of value-added IP services. Currently, Vonage provides office phone systems, marketing automation, an existing call center solution, as well as MPLS and other IP services. With the integration of NewVoiceMedia's platform, Vonage will have enhanced capabilities to establish deeper connections with software providers such as Salesforce. This integration is vital to Vonage's approach in selling its services to potential customers. NewVoiceMedia is recognized by Vonage as the largest privately-owned, pure-play, cloud contact center company globally. It boasts approximately 700 customers, primarily consisting of mid- to large-sized enterprises, including prominent names like Adobe, Siemens, Time Inc., FundingCircle, and Rapid7.


2007. RingCentral allows to manage your calls, save money with VoIP

RingCentral, the phone call management service, is introducing a range of VoIP plans known as DigitalLine, providing users with the flexibility to utilize VoIP alongside or in place of their existing landlines. The implementation of the new VoIP system is straightforward and user-friendly. Users have the option to configure incoming calls to be received through VoIP, enabling them to manage and receive phone calls even when they are away from their landline. Additionally, various minute packages are available for making outgoing calls using VoIP, including an unlimited plan for outgoing VoIP calls at an approximate cost of $25 per month. Unlike consumer-oriented VoIP services such as Vonage, Skype, or Comcast's DigitalVoice, RingCentral is primarily targeting the multi-line business community that seeks to efficiently handle multiple lines without the need for additional hardware or staff. This solution is particularly beneficial for small business owners as it offers extensive customization options for handling incoming calls, including the ability to establish advanced rules or dynamically redirect calls using the SoftPhone, a virtual phone call manager.


2006. Vonage to introduce the V-Phone

Vonage has provided a preview of its upcoming device called V-Phone, a USB device that enables voice over IP users to make calls from any broadband-connected computer. When plugged into a computer, the V-Phone carries Vonage software, transforming the computer into a phone. The new product was unveiled by Jeffrey Citron, the chairman of Vonage, during the Convergence 2.0 conference in New York City. The official launch of the V-Phone is scheduled for Wednesday at a press event in New York. Citron, who did not take questions during Monday's presentation, will be speaking again on Wednesday. Vonage is currently dealing with numerous shareholder lawsuits following its troubled initial public offering, and its stock has significantly declined in value since its debut. Additionally, Verizon Communications has filed a patent infringement lawsuit against Vonage, alleging infringement on patents related to completing calls between Internet phones and traditional telephone networks.


2005. VoIP firm Vonage tests routers for mobile service

Vonage, an Internet-based calling services provider, is conducting customer trials for wireless routers, indicating that the company is nearing the launch of a mobile offering. The trials involve a new Linksys Wi-Fi router that Vonage may offer alongside its calling plans. Additionally, Vonage has acknowledged that customers are testing a Wi-Fi-enabled handset. With the router and handset, users would have the freedom to move around their homes or offices without being connected to a modem or phone jack, eliminating the need for a laptop or desktop computer. Vonage could also market the routers to hot spot providers for installation in public locations. The introduction of these routers aims to address issues that VoIP users face in Wi-Fi hot spots. Vonage and other VoIP companies are capitalizing on mobility, similar to cell phone operators, as they seek to expand their services. The growing support for Wi-Fi is a positive sign for the VoIP industry.


2004. Vonage goes to the video

Vonage, an internet phone service provider, plans to launch videophones and a videophone service by the end of March, according to CEO Jeffrey Citron. While an exact release date and pricing details were not provided, Vonage's videophone service is expected to be similar to Packet8's offering, which provides unlimited video calling for $30 per month. Vonage has partnered with Viseon, a broadband video equipment manufacturer, to develop the videophone, which will resemble Viseon's VisiFone II. The addition of videophone service is part of Vonage's expansion into value-added services in the VoIP (Voice over Internet Protocol) market. Other VoIP providers, like VoicePulse, are also planning to introduce videophone services. Despite the relatively small market for video-calling gear, Citron believes that recent advancements in chip designs and the collaboration of videophone manufacturers have made the technology more affordable and feasible. Additionally, the increasing speed and reliability of broadband connections have helped overcome previous barriers to widespread adoption.


2004. Vonage cuts Net phoning prices

 Vonage, a prominent internet phone service provider and a key player in the field of voice over Internet Protocol (VoIP) technology, has joined the ranks of leading Net telephony companies in reducing prices as part of an ongoing battle for customers. On Monday, Vonage announced a significant price reduction for its monthly unlimited North American dialing plan, lowering the cost from $35 to $30. This new pricing aligns Vonage's subscription rate with the industry standard for Net phone call plans, which leverage the unregulated internet infrastructure rather than the heavily regulated and taxed networks of traditional phone companies. By reducing prices, Vonage's move is likely to prompt smaller competitors to follow suit and further decrease prices to maintain a competitive edge. However, Vonage does not anticipate making further price adjustments until it achieves its target of reaching 450,000 subscribers, a milestone expected to be reached in the fall of 2005.


2003. Vonage drops Cisco VoIP adapter

Vonage, the broadband telephone service provider, announced on Monday that it has replaced Cisco Systems with Motorola as its exclusive supplier of telephone adapters. Under the deal, each week's approximately 2,500 new subscribers will receive Motorola's VT1000v Analog Telephone Adapter, which allows traditional home or office phones to make calls over the internet, bypassing additional charges from telephone companies. While Vonage continues to use Cisco network gear, Vonage CEO Jeffrey Citron explained that Motorola's adapter was chosen for its lower cost and the ability for subscribers to make phone calls while simultaneously using the internet on their PCs or laptops. Citron cited Cisco's failure to meet Vonage's desired price points and adapt to market demands as the reasons for the shift to Motorola. He also noted that this move opens up opportunities for competition to challenge Cisco's dominance in the voice over Internet Protocol (VoIP) equipment sales market. In response, a Cisco representative emphasized the company's commitment to delivering advanced technologies and catering to the needs of service providers. Despite its relatively small subscriber base of 75,000, Vonage has gained recognition as a major broadband phone company due to its ongoing battle with state regulators over regulatory oversight of its telephone service.


2003. Free ride over for VoIP?

The rise of voice over IP (VoIP) as a cost-effective alternative to traditional telephone service is facing a regulatory backlash that could hinder its adoption, increase prices, and pose challenges for startups in the industry. Several states, including Minnesota, Alabama, North Carolina, and Michigan, are in the process of drafting regulations for VoIP providers. The Federal Communications Commission (FCC) is also considering new rules for the industry. This shift in regulatory stance marks a departure from the initial hands-off approach and is driven by concerns over emergency services and the growing market share of VoIP. While regulations may lead to improved essential services, such as 911, VoIP operators anticipate higher costs and potential disruptions to their services. Industry players, including major telephone companies like Verizon, BellSouth, and SBC, are divided in their support for regulation, with Qwest Communications advocating for separate rules for VoIP providers. The outcome of these regulatory discussions remains uncertain, and the FCC may delay making a decision, leaving the industry in a state of regulatory limbo.