I have been using Vonage since July 2004 and have had zero complaints with the service. It constantly works well and the price was right. That’s what I thought until I just noticed that my rate plan went up from $14.99 to $17.99. Sure, not a huge increase and a warning would be nice, but it’s the fees and taxes that have slowly been added on over the years I have beef with. My first bill for the 500 minute basic rate plan came to $16.94 once taxes were added in. My latest bill was $23.18 for the same plan, which includes a ton of extra fees and taxes now.
Altogether the fees and taxes add up to $5.19 for a $17.99 rate plan. That’s almost 29% of the total bill. Still, I know Vonage is a great deal even at that price but I was curious about why I am paying three different fees for 911 service so I called Vonage up. No one could answer why I need to pay these besides that’s what my county, state, and the US Government requires Vonage to charge its customers. Alright, then what about the Federal Program Fee?
Again, I was told it was required for them to charge this fee. Same thing goes for the Regulatory Recovery Fee. The strange thing is that when I first signed up for Vonage, the only extra fee was the Regulatory Recovery Fee and FET, which totaled$1.95 together. I totally understand that prices change and Vonage has had dealt with some hefty legal issues over the years, but charging 29% in fees is a little ridiculous.
So I called up Comcast and inquired about its Digital Voice service. If Vonage’s VoIP service has these fees, then Comcast’s service probably does as well I thought. Nope. The lady I spoke with went over the fees and taxes with me and there isn’t anything extra besides sales tax and a equipment rental fee of $3 per month, which sounds about right.
Listen, Vonage is still an okay deal at $23.18 post fees and taxes, but the fees are extremely high and need to be addressed. At least reps should be able to explain why customers need to pay ‘em. I am convenced — and could be wrong — that a few of the fees are there to pad the bill for Vonage.
I ditched out of vonage 2 months ago and made the switch to ooma exactly for these reasons. Very happy with the one time $200 charge.
Thanks crunchgear for the introduction! Make the switch Matt.
I have been with Vonage since Aug 2007 and have had no problems, nor have they increased my rates as you mention in this article. I am on their unlimited Residential plan for $24.99. That’s what it was when I signed up, that’s what it is today. I must also mention the only time in two years that I’ve had any billing issues whatsoever, they actually gave me a one month credit for my inconvenience, something they didn’t have to do, but they did anyway. Have been very pleased with Vonage, and even if they did charge a bit more, the reliable service and many features they offer, to me, are worth it.
I might also add, Ooma’s International rates are considerably higher (in most cases) than Vonage.
I’ve had two business lines and paid the $49.99/month for almost 3 years…they’ve never given me anything for any of the inconveniences, huge fees and taxes and outages. They’re rude and I’m now shopping around for Magic Jack, Ooma or Google voice.
Vonage better get over themselves, the competition is coming now and they actually give a damn about their customers.
I’m sure you can thank the TelCo lobbyist for this! I hate it when the behemoths squash innovation, using the government to do their dirty work.
I have the same plan in Cali and my fees went up as well. I think I actually got a notice for it a month or so ago.
Still love my Vonage though. Might just switch to unlimited for a few bucks more and support the company I actually like. F the TelCos!
All of that BS listed as ‘x fee’ is something CHARGED by the government to the company, and the company passes is on to you.
Yes, TelCo lobbyists are probably responsible that Vonage gets charged these fees (since the traditional TelCos get charged them as well). Isn’t it fair to level the playing field?
Honestly I am surprised that AT&T hasn’t bought Vonage yet. My Grandfather was right – Judge Green will have to break ‘em up again someday…
I have Magic Jack now since they updated it with Mac compatibility.
The computer needs to be on when using it but it saves a whole lot! $40 for the device and first year, and $20/yr afterwards.
Overpriced Voip is so 2008.
I dropped Vonage because of those fees. I replaced it with Skype In + Grand Central Number + Linksys CIT400 Voip Phone. It works beautifully. My total phone bill is only $96 / year. Sticking to the man without Vaseline.
If you would like to avoid the fees you just need to register your e911 address in the state of Deleware. te is little or no extra tax charged in this local. Your taxes are based on you “physical location” which Vonage determines fromn you e911 registered address. When you call 911 from vonage it goes to thier routing center and you can then tell them where you require help. Judt an FYI though..Vonage is a very poor solution for contacting emergency services. You should get the local emergency police, fire numbers and use them if you are using VOIP anyway. Happy Savings!!
Hello!
If you are interested in making the switch to Comcast, email our team at We_Can_Help@cable.comcast.com. We’d be happy to assist.
Kind Regards,
Melissa Mendoza
Comcast Customer Connect
National Customer Operations
We_Can_Help@cable.comcast.com
I recently, subscribed to vonage attracted by their outstanding promotions! withen the first month of service i had three weeks of technical issuesand called almost everyday to make resolution of the matter, i would get tranfered and put on hold for 20 minutes or more, then my credit card was charged almost 200′00 when i advsed the supervisor i was not pleased with the technical issues, static conversations many ,many problems i am a person of quality and customer service is so important this company has not demostrated how to service the volume or customers Please do not fall into the promotions trap you will have many problems… you get what you pay for exspecially in the service instrustry……. beware !!!!!!!!!!!!!! if you dont want to get unauthorized charges on you credit card statement…… switched to comcast great service and product
This all depends on what state you are in and how the company is rated by the FCC, a teleco (telephone) company or an ISP.
In some cases Comcast does charge additional fees (see discussion at http://www.dslreports.com/forum/r21854111-And-Comcast-is-right ) and they may be regualted as a telco in the future since they run their VOIP service over a separate layer:
“They’re also arguing that because their Digital Voice service rides on a different layer from their broadband service and is not impacted by congestion management, it’s technically a telecommunications service — and subject to regulation and assorted fees.” see ( http://www.dslreports.com/shownews/FCC-Doesnt-Like-Comcasts-New-Treatment-of-VoIP-100311 )
i have had vonage over 6 months with very good service…
On April 22, 2009, I checked my bank account to find a slight increase of $0.32 bottom line. I went further into the fees and noticed they raised the Federal Program Fee by $.30 which increased the tax by $0.02…… Not a huge deal, but I never received a phone call, snail mail, email, text, nothing….. Inflation, Inflation, Inflation
Yeah, none of the phone companies bother to notify you when governmental fees and taxes go up. Guess they figure that if you have a problem with it, call your congress person.
I do not trust Comcast sales people. I’ve been lied to about setup fees. I specifically asked about all the fees for setting up new service and when I got my first bill.. yes, there were fees.
When I called to ask about about the fees, customer service told me, “Oh, They were mistaken” and would not reverse them.
This has happened to me twice.
Now I always count on hidden fees.
They only tell you what you want to hear so you will sign up.
Vonage has been the same price for me for years. They have horrible customer service but I have only needed to call them once or twice in 4 years.
Overall, I am happy with Vonage
Oh ya, the Vonage web site is extremely slow.