Vonage Has Fresh Backing; Says it Has Raised $250 Million

Fresh backing for web phone firm

Broadband phone company Vonage has said it has raised $250m (£142m) to help finance the expansion of its network.

The US firm, which enables people to make calls over the web using their home phones, said it acquired the funds from a group of private investors.

Vonage is one of a number of companies focusing on internet telephony, known as Voice Over Internet Protocol (VoIP).

The financing could be the private firm's last before it goes public, The Wall Street Journal reported on Sunday.

Growth prospects

Vonage managers are understood to be exploring the possibility of floating the company on the stock market.

However, a deal which could see the firm sold to a separate buyer could also materialise, the newspaper said.

Vonage has more than a million customers in the US and recently launched operations in the UK.

Investors are increasingly excited at the prospects for growth among VoIP companies, which offer users phone calls at substantially lower prices than traditional fixed-line firms.

In September, online auction giant eBay agreed to buy internet telephone firm Skype Technologies for $2.6bn.

The latest round of investment in Vonage brings the total amount raised by the company to $658m.

Story from BBC NEWS:

formatting link
Published: 2005/12/19 14:01:21 GMT

Copyright 2005 BBC

NOTE: For more telecom/internet/networking/computer news from the daily media, check out our feature 'Telecom Digest Extra' each day at

formatting link
. Hundreds of new articles daily. And, discuss this and other topics in our forum at
formatting link
(or)
formatting link
For more news headlines from BBC, along with BBC World Service Audio, please go to:
formatting link

Reply to
BBC News Wire
Loading thread data ...

Cabling-Design.com Forums website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.