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RadioShack Introduces Broadband Internet Telephony Service in Nearly 4,000 Stores in 38 States
[May 13, 2004]

RadioShack Introduces Broadband Internet Telephony Service in Nearly 4,000 Stores in 38 States

FORT WORTH, Texas, May 13 /PRNewswire-FirstCall/ -- RadioShack Corporation , the leading consumer electronics specialty retailer, today announced it is now offering broadband Internet telephone service, commonly known as voice over Internet protocol (VoIP), in nearly 4,000 of its retail stores across the country. This gives RadioShack a retail distribution base for VoIP services that is approximately six-times larger than the next closest retail chain. In addition, more than 1,600 of these RadioShack stores are expected to be offering in-store demonstrations as early as July.


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 http://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.
How does Broadband Telephony work?
The technology works by turning voice calls into data packets and sending them over the Internet. When the data packs approach their destination, they are reassembled, and delivered in the form of a traditional call. Vonage customers require only a high-speed Internet connection and a regular home telephone to utilize the service.
The Vonage offer through RadioShack allows customers to select from monthly plans starting as low as $14.99. Rates for small businesses will vary. In addition, new customers who sign up for Vonage broadband phone service and purchase a Vonage starter kit receive a free month of unlimited calling, no activation fee and a $30 Vonage mail-in rebate -- a $94 value. Certain restrictions may apply.
All rate plans include a full set of features, including caller ID, call waiting, voicemail, call forwarding, and emergency calling service. In addition, Vonage offers a number of enhanced voicemail and code selection features, including:
-- Voicemail: Vonage offers three options for checking voicemail: you
can dial into a menu and listen over the phone; listen to voicemail
online, or listen to voicemail in your email box (a .wav file will be
sent to your account)
-- Area Code Selection: Vonage customers can choose any area code,
regardless of location.


Vonage's technology offers RadioShack's customers other substantial benefits, including:
-- Cost savings versus traditional phone service
-- Increased functionality versus traditional phone service
-- Improved call quality versus traditional phone service
-- Free calls to other Vonage subscribers
-- Service portability, wherever broadband is available


About RadioShack Corporation:

Fort Worth-based RadioShack Corporation is the nation's most trusted consumer electronics specialty retailer of wireless communications, electronic parts, batteries and accessories as well as other digital technology products and services. With nearly 7,000 outlets nationwide, it is estimated that 94 percent of all Americans live or work within five minutes of a RadioShack store or dealer. The company's knowledgeable sales associates and brand position -- "You've Got Questions. We've Got Answers.(R)" -- support RadioShack's mission to demystify technology in every neighborhood in America. For more information on the company, visit the RadioShack Corporation Web site at http://www.radioshackcorporation.com/ . For more information on RadioShack products and services, visit its e-commerce Web site at http://www.radioshack.com/ .
About Vonage(R)
Vonage is redefining communications by offering consumers and small businesses an affordable alternative to traditional telephone service. The fastest growing telephony company in North America, Vonage's service area encompasses more than 1900 active rate centers in over 125 North American markets. Vonage is sold directly through http://www.vonage.com/ and retail partners such as Amazon.com, Circuit City, Best Buy and RadioShack. Wholesale partners such as EarthLink, ARMSTRONG(R), Advanced Cable Communications and the Coldwater Board of Public Utilities resell the Vonage broadband phone service under their own unique brands. With more than 135,000 lines in service, Vonage continues to add more than 20,000 lines per month to its network. Over 5 million calls per week are made using Vonage, the easy-to-use, feature-rich, flat rate phone service. Vonage is headquartered in Edison, New Jersey. For more information about Vonage's products and services, please visit http://www.vonage.com/ or call 1-VONAGE-HELP. Vonage(R), Vonage Digital Voice(TM), Toll Free Plus(SM) and Virtual Phone Number(SM) are trademarks of Vonage Holdings Corp.


Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000518/DATH047LOGOPRN Photo Desk, [email protected]


RadioShack Corporation


CONTACT: Charles Hodges of RadioShack Corporation, +1-817-415-3300, [email protected] ; or Mitchell Slepian of Vonage,+1-732-528-2677, or [email protected]


Web site: http://www.radioshackcorporation.com/http://www.radioshack.com/voiphttp://www.ra
dioshack.com/http://www.vonage.com/

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