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Vonage's VoIP Subscribers Pass The 400,000 Mark

VoIP provider Vonage said Wednesday it has signed up 400,000 subscribers for its Internet telephoning service, more than doubling its base in less than six months.

The firm reported it had added 115,000 lines in the fourth quarter of 2004 alone.

"Vonage has set the benchmark, proving its value proposition to a marketplace starved for full-featured, cost-effective alternatives to the incumbent local exchange carriers," said Jeffrey Citron, chairman and CEO of Vonage Holdings Corp., in a statement.

Earlier this week, Vonage said it has contracted with a handset manufacturer to produce a VoIP phone with Wi-Fi capability for release later in the year.