If you’re thinking of cancelling Vonage, I suggest you read Tom Keating’s post on cancelling his Vonage service. He recorded the entire call with the Vonage customer service rep (what a rascal), and transcribed it.

All in all, don’t be surprised if Vonage does more than ask you a few questions to get you to reconsider your decision to abandon ship. Like Tom, I decided to cancel Vonage recently (after only about 6 months). My call quality was terrible. While I didn’t get into quite the same pressure cooker, the Vonage rep did try to get me to reconsider, offering a few free month’s service, a chat with tech support, etc.

The rep also tried to make me think I was making a big mistake, a bad decision. I was a little taken aback. When I return something in a store, often I’m asked for the reason for the return. Never do I get into a debate about it. Kind of unnerving.

I wonder if they’d have better success if they just said “I sorry you had this experience with Vonage. It sounds like you’re pretty frustrated. I see why you’d want to cancel. But is there any way I could get you to reconsider? Would you be willing to try a couple more things to fix your problems before cancelling?” And if the answer is No, then the answer is No. Thanks and goodbye.

Well, after eight uneventful months, Vonage and I are parting ways.  Perhaps not the most auspicious way to start off a blog about VoIP but I’m being honest here. I’m not going to go into a big rant. Flame throwing just isn’t my style. I don’t hate Vonage. The service just wasn’t financially making sense for me. The phone usage in my business isn’t enough to warrant a fixed monthly plan, even one as low as $24.99. Plus in my area the call quality wasn’t pristine. And some people do get excellent voice over Vonage. But I generally experienced crackling and lag on most calls.

If anyone has comments on Vonage quality in their area, let me know.

From the Vonage forums, it’s clear that call quality varies tremendously from region to region. My advice is that if the VOIP service, Vonage, SunRocket or whatever, isn’t what you expect, try something else. The VOIP marketplace is growing by leaps and bounds, and as a consumer you should shop around.

But now that I’ve done Vonage, it’s time to move on over to other VOIP solutions. Skype, SightSpeed, and Gizmo are the free ones on my radar and make the most sense for me given my business.

Vonage users can now receive local traffic reports from their Vonage phone by dialing 511. The coverage is something like 30 511 systems in 26 states. Vonage now also provides local weather the same way. Dial 700-WEATHER and then enter a 5-digit zip code. Kind of cool. Andy Abramson has some thoughts on it, and Don Rosenbaum of FierceVOIP suggests that Vonage may be casting an eye towards a future mobile Vonage customer “People tend to need traffic and weather information when they’re in their cars; unless there’s a hotspot or mobile data connection” Hmmm.

As a little postscript to that Bye Bye Vonage post, I discovered that while Vonage customer support is 247, if you want to CANCEL their service you have to call during business hours (between 9 and 4:55 Eastern). I’m on Pacific time so it took me three tries. Guess they don’t want to make it too convenient if you plan on jumping ship!

But they were very polite, and even offered me free service for a few months to see if they could fix my voice quality problems. I was tempted, but like most people, I don’t want to spend my time friggin’ around with tech support trying to fix it. It ’s not good use of my time. I want it just TO WORK.

I opted to pay the $50 cancellation fee and just move on…

Here’s an idea from Michael at GroovyGreen.com who commented on my Three Tries to Cancel Vonage post. When he called to cancel his Vonage service, he had this great yarn prepared:

“This is what you do: Call their HELP line, go to the cancellation option and then wait. (Luckily, I waited about 5 minutes.) Next, as soon as the person gets on the line say, “Hello, My name is Michael and I would like to cancel my account because I am moving to another country.” This will immediately cause them to lose most of their script and go to Page 2. The kind woman on the other line then asked me if the move was permanent. I told her that I would be overseas for the next 10 years. She countered by saying that Vonage could be used anywhere, it was one of the advantages, etc. I agreed that the thought had crossed my mind, but unfortunately I was moving to a place where Internet service was not allowed. She asked if she might know the location of this country. I told her Ethiopia. She asked if there were any towns nearby that might have Internet access, I told her no, because I was moving to a monastery and it was 100 miles away from the nearest town. Very remote. She became quiet and then asked if there was anyone living in the U.S. that could use the account while I was gone. As this point, I was like, ‘Jeesh…’, but I went on, “No, there’s nobody here in the U.S. I could transfer this too. That’s part of why I’m leaving the country. My family has passed away, my dog just died, and I just don’t value material possessions as much as I used to.’

She got started on canceling my account….”

In an article this week on TMCnet, the research firm TeleGeography reported that US subscribers using VOIP services rose 18 percent in the last quarter to 18.2 million with Vonage being the largest provider with 1.95 million subscribers. Why are they still the biggest?  Massive media campaigns on the web, TV, radio, and sporting events helps…a lot. And don’t forget the catchy jingle and celebrity endorsements. But all that stuff just gets the consumer to the web site (retail sales excluded). What happens after that?

Of course once the consumer turns into a subscriber, keeping them is a whole other story. This blog, as well as many others, has touched on what appears to be widespread customer service problems. In fact, I still get responses to a post back in September on the runaround I received when I wanted to cancel my Vonage service. And my story wasn’t even one of the crazier ones. (Check out Tom Keating.)

Since cancelling Vonage in August, I’ve been keeping busy blogging about the a wave of emerging voice over Internet services. I haven’t applied for any other national broadband phone service, like Primus or Shaw Digital Phone, in my area. I’m happy trying various softphones and of course my PhoneGnome.

But, I decided to take a fresh look at the Vonage web site and see if they are doing anything differently. In my opinion, for all their faults once they’ve got you, Vonage does a lot that’s right.

1) Clear description of services/plans above the fold, with enough text to explain what the plan is all about without clicking 

2) Site navigation is SIMPLE: tabs to products, services, availability and features are clearly identified

3) Upfront explanation of device bundles, including what’s free, what’s extra, and information to help figure out which device is right for me 

4) Special promotions, deals, and other creatives are below the bread and butter products. This is important (I think). To me this says that our products are the most important thing we have to offer, not the limited time sweet deal.

Packet8, Lingo or SunRocket just don’t communicate as well. These three providers all had the basic residential and business plan info above the fold, but I found it took more clicks and more reading to find the additional information I needed. Comcast Digital Voice was the most annoying. Perhaps because they are basically an entertainment company, they feel they have to “entertain” me while selling phone service. A whole bunch of flash nonsense. Stupid. And they won’t tell me anything about their products/services until I tell them my address and zip code.

I guess my point, to make a long story even longer, is for emerging products and services to learn a few lessons here. Speak clearly to your audience. Communicate your product and services upfront. Explain what’s included (device bundles, software) and what’s extra BEFORE the sign up process. I don’t want to see a small asterisk footnote that says the service works with the purchase of $75 VOIP adaptor right at the very end. And finally, don’t hide behind walls of flash animation and annoying forms that make users type a bunch of stuff.

I saw a post yesterday on the Motley Fool called “Avoid the VOIP Value Trap“. It’s reader is the investor looking for the “next home run stock”. The gist of writer Dave Mok is to avoid investing in VOIP like the plague. “Internet telephony is a novel application that leverages existing infrastructure to deliver comparable services at lower prices. Technological developments like this can help companies improve margins and offer better value to consumers, but they don’t necessarily create substantial new value worthy of investment.”

Hey, well he may be right. I’m not an investor so I don’t know if this is news or not (I suspect not). Consumer value just can’t get no respect…Well I think there’s more to VOIP than Vonage–that is to say there’s more to VOIP than just cheap phone calls.

With all the hubub around Vonage and other national VOIP phone companies like them, I sometimes slide into the trap of thinking VOIP is all and only about saving money, unlimited long distance plans, and the like. And of course it’s not. I was reminded of a conversation I had in December with Talkster CEO James Wanless who called the “race to zero” a lousy business model. The fact is there are many new ventures using VOIP as a platform to offer services that traditional phone companies can’t. Look at Jangl offering phone privacy for social networking sites. Look at TalkPlus with a second number for your cell phone. Look at iotum TalkNow for Blackberry users. MobileStick from Bridgeport Networks, SightSpeed video calling, GrandCentral, PhoneGnome, Fring, Jajah, Gizmo, Truphone…the list is getting longer by the day. To say that “VoIP offers no new killer applications or buzzworthy innovations” is a little harsh. Investor value? No idea. Consumer value? You bet.

Andy posts long and loud on AT&T’s new Unity Plan: unlimited free calling between AT&T mobile and landline customers for a fixed price per month.  While the plan excludes mobile roaming, international calling, and CallVantage services (the AT&T VoIP offering), he thinks they will be blended into the mix soon enough. This should prove troubling for companies like Vonage. In fact, why use Vonage when I can have unlimited mobile AND landline calling for a fixed price on one monthly bill?

Is VOIP a generational thing? When I told my parents about my great scheme to use VOIP for my business line and long distance calling, Mom gave me that worried look that says “Are you sure that’s not illegal?” You should try it, I cry! Vonage, my service of choice at the time, was only $19.95 a month. A simple calculation on my phone bill told me I was spending more that that on long distance every month, so it seemed a no brainer.

Then Dad says, why don’t you just use 10-10-YAK? Only 5 cents a minute.

That’s what my parents use. YAK is a dial-around service you can use for long distance calling. The charges appear on your regular phone bill so there’s no subscriber contract to deal with.

But Dad (I’m deflated now), YAK isn’t VOIP, and VOIP is COOL. VOIP is the WAVE of the FUTURE…OK well whatever.

Now I don’t know if it’s just my parents, but the idea of only paying for what they use on a regular old telephone makes total sense to them. Hooking up a Vonage phone adaptor to their PC and broadband modem to make phone calls does not.

But my Dad did get me thinking about this question of unlimited calling vs. pay as you go. If you ask the folks at SIPphone Gizmo Project, they’ll say that unlimited plans won’t save you money. Only paying for minutes you actually use will.

“A calling plan that involves unlimited calling is almost never in the best interests of the consumer. When you just pay for what you consume, you end up paying far less.”

It grieves me, but lets do the math. At 5 cents a minute, I would have to spend about 400 minutes calling long distance calls (6 1/2 hours) to break even with my $20 plus tax Vonage charges for unlimited calling. I spend way less than 400 minutes a month talking long distance, so (a) I was paying way to much at my telco before for long distance, and (b) I can do way better than Vonage.

Most VOIP long distance rates are around 2 cents a minute or less, so for me paying as I go makes sense (400 minutes at 2 cents/minute is $8)!

 

Okay, I like Skype. While I set up my account ages ago without any problems, I decided to use Vonage as a work line because I wanted a “regular” phone. Well, now that Vonage is behind me, I’m using Skype more.

Initially, I didn’t want to like Skype because like Vonage, it has become a category unto itself. What I mean is, people can now say that they are using free Internet phone software that works (or doesn’t work) ”like Skype” and you know what they’re talking about. The same can be said for phone service that is ”like Vonage”.

And because Vonage didn’t work out for me, I tried hard not to be sold on Skype Hype.

Well I have to say that so far, Skype works perfectly for a computer-bound person like me, and here’s why: 

• I am self-employed. I work out of my home office, I spend most of my time at my desk, and my laptop is always on.
• The Skype window is big enough to see what you’re doing, including the task icons along the top. Bigger is better especially when you are learning a new piece of software, or if you’re not a computer wiz.
• Adding contacts (one click) and importing contacts from your email address book (about three clicks) is easy and intuitive. Someone with limited computer experience can do it.
• Dialing by double-clicking the contact name is what saves me time. Of course this isn’t unique to Skype (all softphones, or computer phones do this). As a new user though, I made a few calls by accident because I double-clicked when I didn’t mean to. A single click expands the contact info so you can see the details. Another single click collapses the details. A few times I was too quick on the mouse.
• Until the end of the year you can make FREE calls within North America to any regular phone. This means you can really test drive Skype in all kinds of calling scenarios–long distance, local calls, conference calls. Make the most of the freebie and put Skype through its paces.
• If your contact permits it, Skype shows you that person’s timezone and a mood message. For example, “I’m here but in and out of meetings all day”.
• Skype online help information is approachable, fully searchable, and tailored to all levels of user.  If you are a rank beginner the Skype User Guides or Troubleshooter are the places to visit. For all my questions, I’ve been successfull using the Knowledgebase.

Of course, devoted Skype users know there are tons more features and wiz-bang stuff that Skype can do. But I think that unless you’re happy with the basics, the rest of it won’t matter. You just won’t use the product. 

In the next few weeks, I’ll be comparing how I like using Skype versus another popular softphone, Gizmo Project. Should be interesting.