Vonage now charges 29% in fees (at least for me)

Friday, April 17th, 2009

Matt is currently working as a writer for TechCrunch. Matt Burns is a family man first and attempts to be a writer second. Born and raised in the heart of the automotive world, only cars eclipse his love of gadgets. He previously wrote for Engadget and EngadgetHD before moving into the party house that is TechCrunch. He learned the retail... → Learn More

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I have been using Vonage since July 2004 and have had zero complaints with the service. It constantly works well and the price was right. That’s what I thought until I just noticed that my rate plan went up from $14.99 to $17.99. Sure, not a huge increase and a warning would be nice, but it’s the fees and taxes that have slowly been added on over the years I have beef with. My first bill for the 500 minute basic rate plan came to $16.94 once taxes were added in. My latest bill was $23.18 for the same plan, which includes a ton of extra fees and taxes now.

Altogether the fees and taxes add up to $5.19 for a $17.99 rate plan. That’s almost 29% of the total bill. Still, I know Vonage is a great deal even at that price but I was curious about why I am paying three different fees for 911 service so I called Vonage up. No one could answer why I need to pay these besides that’s what my county, state, and the US Government requires Vonage to charge its customers. Alright, then what about the Federal Program Fee?

Again, I was told it was required for them to charge this fee. Same thing goes for the Regulatory Recovery Fee. The strange thing is that when I first signed up for Vonage, the only extra fee was the Regulatory Recovery Fee and FET, which totaled$1.95 together. I totally understand that prices change and Vonage has had dealt with some hefty legal issues over the years, but charging 29% in fees is a little ridiculous.

So I called up Comcast and inquired about its Digital Voice service. If Vonage’s VoIP service has these fees, then Comcast’s service probably does as well I thought. Nope. The lady I spoke with went over the fees and taxes with me and there isn’t anything extra besides sales tax and a equipment rental fee of $3 per month, which sounds about right.

Listen, Vonage is still an okay deal at $23.18 post fees and taxes, but the fees are extremely high and need to be addressed. At least reps should be able to explain why customers need to pay ‘em. I am convenced — and could be wrong — that a few of the fees are there to pad the bill for Vonage.

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