INTERNET PHONE SERVICE VONAGE HIRES AGENCY

Korey Kay to Help Boost Retail Sales

By Published on .

SAN FRANCISCO (Adage.com) -- Broadband telephone company Vonage hired Korey Kay & Partners for its advertising account.

The New York-based ad agency, with accounts for Virgin Atlantic and Comedy Central, among others, will create a new branding and advertising campaign. A spokeswoman for Korey Kay said a new TV and radio campaign would break during the Major League Baseball season Vonage last year split with its former agency, Gardner Nelson & Partners, New York.

Vonage, based in Edison, N.J., recently received $75 million in new funding for its service, known as VoIP, for voice over Internet protocal. The service allows consumers to use their computers to make local and long distance phone calls, bypassing traditional landline companies for a small monthly fee. The calls are cheaper over the Internet because they aren't subject to federal regulatory fees.

With 120,000 lines in service, Vonage operates in 40 states and is sold though retailers Circuit City and Amazon.com. Internet companies such as EarthLink resell Vonage's broadband phone service under their own brands.

Vonage hopes to increase retail sales for its Internet service and is looking to partner with a major cable operator to extend its service to cable broadband subscribers.

Traditional phone companies such as AT&T and Qwest are also looking into their own VoIP services.

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