Vonage is an Internet calling provider. Recently though, it has geared towards providing services to mobile phones as well. On October 5, 2009, Vonage made a breakthrough. It started allowing international calls for Blackberry and iPhone users. Vonage's Internet technology allows users who have downloaded its application to make international calls from the United States. Vonage claims that calling through its application is cheaper than the usual landline international call. However, as with any calling service, call rates vary depending on the location being called. Still, Vonage tries to provide much cheaper calls by being even more cheaper than wireless calls and traditional landline calls.

It has been predicted that by 2013, 15 million North American-based people will be placing calls through the mobile web. Vonage wants to convince most of these mobile web users to make use of its application.

Vonage's moves to regain customers

One of the reasons behind Vonage's move to mobile phone services is that it has experienced serious losses when it comes to its Internet calls. Its Internet calling service has been challenged by rivals Comcast and Skype. While Skype's customers rose by 42% and Comcast's customers rose by 24%, Vonage lost 88,643 subscribers. The customers could have defected to the more popular Internet calling service providers. This is mostly due to the fact that rivals have more features offered with their services.

In response to the challenges created by rivals, Vonage hopes to resurge with its mobile features that are especially designed for international callers. These mobile features are not yet offered by Vonage's rivals.

Vonage's potential as a provider of overseas calling services

As of now, Comcast does not have a Web-calling application yet. Skype does not have a BlackBerry Application - for now. The company is working on one as of the moment though. So, Vonage has to take advantage of its headstart and continue providing great service and additional innovations. This headstart can also help the company convince people who have not availed of any Web-calling service to avail of what Vonage can offer. Vonage CEO, Marc Lefar believes that the market offers plenty of opportunities. Americans are having their landlines cut so they are more and more relying on their mobile phones. Mobile web calling services are then expected to grow from $51 million to $2.9 billion by the year 2013. If Vonage looks at the global market, a $32 billion market is up for grabs.

Vonage should do well. It plans to offer a very attractive flat rate for its international calls. The $24.99 monthly fee is a good offer but it will be offered during the fourth quarter to customers who have both Vonage's home and mobile services. For now, users have to make do with per-minute payments for their international calls.