What is Vonage?

Vonage Holdings Corp. is a telephone provider that offers VoIP, or voice-over-Internet protocol services.  These VoIP services work as phone services, providing local and long-distance phone calls, but they operate through the Internet instead of through regular phone lines.  Many people are turning to VoIP services, such as Vonage, to serve their telephone and communication needs. 

How Does Vonage VoIP Work?

Customers order a VoIP service, such as Vonage, and they can connect to a telephone number in one of two ways.  The first would require purchasing an adaptor to plug a regular telephone into the computer and Internet connection.  The second would require purchasing a microphone to hook up to the computer.  With the help of the adaptor or the microphone, you simply dial with the telephone or computer.  The connection is then transferred automatically from your phone or computer, to Vonage, over the Internet, and back through to the recipient’s phone line so that they can answer the call. 

Vonage IPO

Vonage has decided to “go public” in an IPO, or initial public offering, venture.  Vonage is attempting to profit $600 million from the selling of their stocks.  Inside sources have noted that Vonage has been successful in raising money from large corporations, and therefore the IPO is anticipated to be a success for the rapidly growing company. 

Other sources say it may be difficult to find a large number of investors willing to take the risk of investing in technology and Internet companies that are just starting out.  The success of Vonage has been sizeable since their commencement in 2002, now providing 800,000 households with telephone services.  Investors have the opportunity to make a fortune or lose a fortune with the IPO Vonage is now presenting.