Vonage CEO Marc Lefar Comments on FCC Decision to Overhaul Intercarrier Compensation (ICC) and Universal Service Fund

Vonage (NYSE: VG) today released a statement from CEO Marc Lefar in response to the FCC’s decision to overhaul Intercarrier Compensation (ICC) and the Universal Service Fund (USF). Vonage has supported this reform from the beginning and is pleased to see the FCC adopt some recommendations the company supported during the rulemaking process. Importantly, the shift of universal service funding to support the deployment of new broadband networks, rather than the build-out of traditional telephone networks, is a positive development for the VoIP community.

Lefar said, “Vonage is pleased with the FCC’s decision to overhaul Intercarrier Compensation and the Universal Service Fund. In the short term, we expect the decision will be neutral to positive for Vonage’s business, and in the long term, the decision will reduce our cost of telephony services by millions of dollars.

“Moreover, the FCC’s order quickly eliminates intrastate access charges, which currently represent an antiquated fee structure and which Vonage has indirectly paid since the company’s inception. We believe the FCC’s actions will be fundamentally good for consumers by eventually lowering prices and expanding the availability of broadband – they help Vonage and other service providers better deliver the high-quality, feature-rich, low-cost broadband communications services they demand.”

About Vonage

Vonage (NYSE: VG) is a leading provider of low-cost communications services connecting individuals through broadband devices worldwide. Our technology serves approximately 2.4 million subscribers. We provide feature-rich, affordable communication solutions that offer flexibility, portability and ease-of-use. Our Vonage World plan offers unlimited calling to more than 60 countries with popular features like call waiting, call forwarding and voicemail — for one low monthly rate. Vonage’s service is sold on the web and through regional and national retailers including Wal-Mart Stores Inc., Best Buy, Kmart and Sears, and is available to customers in the U.S. (www.vonage.com), Canada (www.vonage.ca) and the United Kingdom (www.vonage.co.uk).

Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage® is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp.

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