Vonage Applauds FCC Order Supporting Lower Rates To Call Pakistan
HOLMDEL, N.J., March 6, 2013 /PRNewswire/ – Vonage Holdings Corp.
(VG) applauds the Federal Communications Commission (FCC) for issuing an order yesterday that prohibits U.S. telecommunications providers from paying rates for calls to Pakistan above those in place prior to October 1, 2012, when telecommunications providers in Pakistan, with the support of the Pakistani government, increased the cost to complete calls to the country by more than 500 percent (the “Order”). The Order was issued as a result of Vonage’s petition for FCC intervention to fight the price increase on behalf of the hundreds of thousands of Pakistanis living in the United States. The petition was universally supported by providers in the U.S.
Vonage provides innovative and affordable calling solutions that enable consumers to call family and friends around the world at the most cost-effective rates possible, so they can talk longer and more often. Prior to the cost increase, Vonage had added Pakistan to its flagship flat-rate international calling plan, Vonage World, as an unlimited calling destination in response to strong consumer demand. As a result of the anti-competitive steps taken by telecommunications providers in Pakistan, Vonage and providers worldwide experienced a sudden and dramatic increase in the cost to complete calls to the country, and Vonage was compelled to charge per-minute rates for all calls to Pakistan.
“Vonage is extremely disappointed in the exorbitant price increase imposed by the Pakistani providers. The increase hurts consumers and prevents us from providing greater value to our Pakistani customers,” said Michael Tempora, Senior Vice President of Product Management for Vonage. “Vonage appreciates the efforts of the United States government and the FCC. We are hopeful that this Order will spark a prompt reduction in calling rates so that consumers can once again a