Vonage raises rates of lowest tier offering by 20%

Vonage Raises some rates in 2011Vonage is raising rates for its most basic plan from $9.99 a month to $11.99 a month (plus taxes).  I have been an on-again-off-again, user of Vonage for almost 7 years.  For those that are not familiar with Vonage; Vonage is a voice-over-IP (VOIP) provider of home Internet-based telephone service.  Because I do not need “unlimited” calling minutes, Vonage has always seemed the best option.  They provide acceptable service at a decent price.  Even comparing their unlimited plans, Vonage typically offers a price that is significantly better than Comcast or other providers bundled home phone pricing.

Unfortunately, today I got the following notice that Vonage was going to raise prices on my plan:

Modifications to your Vonage calling plan will appear on the first billing statement posted to your account on or after July 5, 2011.  Our plan will continue to provide a great value for home phone service, including an increase in monthly outbound minutes to 300 from 200. Your account will reflect this change at $11.99/mo plus taxes and fees.

In addition to 50% more minutes for calls in the U.S., Canada and Puerto Rico, your plan still provides the benefits you’ve come to expect:

  • Unlimited incoming phone calls AND Vonage-to-Vonage calls.
  • The same great low international rates on calls around the world.

The change is effective July 5th, 2011 and reflects a $2 increase per month or about an 20% increase from the $9.99 I was paying.  Additionally, since taxes and some fees are percentage based as well, I expect this change to cost me about $2.25 more per month when taxes and fees are included.  This means this rate increase will increase my home phone costs by about $27 a year.

With this price change, I plan on re-evaluating whether Vonage is still the best deal or not for me.  One option, I might consider is Ooma – their model is that you pay a flat fee up front and then get “unlimited access for life” (plus taxes).  For now, I need to do some research.  I will report back later with my findings.

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1 Response to “Vonage raises rates of lowest tier offering by 20%”

  1. krantcents

    A couple years ago, I decided to give up my land line and use my cell phone exclusively. Now that I am used to it , I actually like it better because I know the call is for me. I get very few wrong numbers and no solicitations. If I ever decide to go back, I would consider Vonage or that type of service.