Vonage is looking for a boost from iPhone users amid sagging sales of its Voice over Internet Protocol (VoIP) service. The company has submitted an iPhone application to Apple for approval.
The first version Apple reviewed came back due to a technical issue involving an icon label. The app was resubmitted by Vonage after correcting the problem and is currently under review.
Observers are counting on Apple to restrict the Vonage service to Wi-Fi only, similar to limited functionality on the Skype iPhone application. AT&T allegedly has an agreement with Apple requiring explicit permission for any VoIP service to make calls using its cellular network.
This provision preserves AT&T revenue and frustrates iPhone users. Apple's App Store approval process has come under fire lately after the rejection of Google Voice. The FCC has asked all three companies to explain their position in an investigation of the Google Voice rejection.
Vonage has lost up to 100,000 subscribers to digital phone packages offered by cable companies in the past year. With the release of an iPhone app, Vonage hopes to tap into some of the 26 million iPhones that have already been sold to help increase sales.