May 13, 2004

Radio Shack and Vonage - powerful distribution

Vonage, the marketing powerhouse for voice over the Internet Protocol services has teamed up with Radio Shack to distribute VOIP services in almost 4,000 Radio Shack retail stores across the country. The deal is not only for distribution but in more than 1,600 stores will be live demonstrations - very powerful.

The new VoIP service will be provided by Vonage, the nation's leading broadband telephony service provider. Broadband phone service allows people to make and receive phone calls using a high-speed Internet connection instead of a traditional phone line. This service will be available primarily through RadioShack's stores located in U.S. markets that have wide-spread cable or DSL broadband Internet penetration. Customers can sign up or inquire about Vonage broadband phone service availability at their local RadioShack store, by visiting www.radioshack.com/voip or by calling 1-800-877-0072.

According to RadioShack officials, broadband telephony is a perfect fit with the company's strategy to offer products and services that are creative, innovative and of high value that solve customers' wants and needs.

"VoIP plays directly to the core strengths of RadioShack -- superior customer service and knowledgeable sales associates," said Stu Asimus, RadioShack's senior vice president, chief merchandising officer. "The low, yet rapidly growing number of subscribers shows that broadband phone service is still in the early adoption phase of the technology. VoIP is simply not quite ready for a self-service environment.

"In fact, the majority of individuals and families either do not understand VoIP at all or believe it's only for computer geeks, which is where RadioShack can play a huge role," Asimus said. "With more than 1,600 stores soon featuring in-store demonstrations along with almost 2,400 additional stores offering the service, we are uniquely equipped to explain to customers how this new technology works. We can also help them understand why it can enhance their lives, how it provides a superior, cost-effective value over traditional phone services, and then hold their hand through the installation process to remove any worries they may have about making VoIP work in their homes or businesses."

"The national roll out of Vonage's broadband telephony product presents a great opportunity, which will allow us to prove the value of our products on retail shelves," said Matt Deatrick, vice president Retail Channel Sales of Vonage. "We are changing the telecommunications industry with the help of one of the nation's top consumer electronics retailers, as RadioShack's market savvy and educated sales representatives demonstrate the value of broadband phone service to an untapped market segment."

According to Asimus, VoIP has been around since the mid '90s, but slow connection speeds in major U.S. markets and restrictive equipment severely hampered its adoption. "Today's explosive growth of broadband DSL and cable Internet access, which is now in more than 20 million U.S. households, as well as major improvements in telephony hardware, has put us on the edge of a disruptive communications revolution that is quickly gaining momentum," said Asimus.

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