Vonage signs 100,000th customer

Vonage, which provides phone service over high-speed Internet lines, on Monday said it had signed up its 100,000th customer, representing a doubling of its subscriber base in less than five months.

Vonage of Edison, New Jersey, which has been offering the service for two years, said it added more than 15,000 lines in January alone and 50,000 since September.

The company offers telephone service for a competitive flat-rate price via residential broadband Internet connections. Residential pricing plans start at $15 and run up to $35 or more for unlimited calling in the United States and Canada.

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Vonage has said it is targeting 250,000 customers by the end of this year and it is expanding internationally.

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The company recently struck a deal with Texas Instruments Inc. in which the communications chip maker will build circuits that make it simpler for customers to set up Internet phone-calling without additional connection equipment.

Offering calling at prices that undercut traditional phone companies, Vonage faces challenges from some U.S. state and federal regulators who argue it should lose its Internet exemption and meet the regulatory demands of traditional phone service providers.