Vonage 10-Q6 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
Document And Entity Information	Sep. 30, 2013	Oct. 31, 2013
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Entity Registrant Name	'VONAGE HOLDINGS CORP	'
Entity Central Index Key	'0001272830	'
Current Fiscal Year End Date	'--12-31	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	206,201,622

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Current assets:	'	'
Cash and cash equivalents	$99,915	$97,110
Accounts receivable, net of allowance of $630 and $753, respectively	21,932	20,416
Inventory, net of allowance of $222 and $268, respectively	11,492	5,470
Deferred customer acquisition costs, current	5,977	5,418
Deferred tax assets, current	15,947	15,947
Prepaid expenses and other current assets	19,374	15,487
Total current assets	174,637	159,848
Property and equipment, net	52,657	60,533
Software, net	20,337	19,560
Deferred customer acquisition costs, non-current	222	347
Debt related costs, net	1,638	772
Restricted cash	4,401	5,656
Intangible assets, net	4,901	6,681
Deferred tax assets, non-current	274,223	290,166
Other assets	1,970	3,826
Total assets	534,986	547,389
Current liabilities:	'	'
Accounts payable	39,483	74,028
Accrued expenses	75,669	55,787
Deferred revenue, current portion	35,051	35,803
Current maturities of capital lease obligations	2,779	2,471
Current portion of notes payables	23,333	28,333
Total current liabilities	176,315	196,422
Notes payable, net of current portion	29,167	14,167
Deferred revenue, net of current portion	497	730
Capital lease obligations, net of current maturities	10,972	13,090
Other liabilities, net of current portion in accrued expenses	1,612	1,565
Total liabilities	218,563	225,974
Commitments and Contingencies	0	0
Redeemable noncontrolling interest	233	0
Stockholdersâ€™ Equity	'	'
Common stock, par value $0.001 per share; 596,950 shares authorized at September 30, 2013 and December 31, 2012; 238,066 and 230,118 shares issued at September 30, 2013 and December 31, 2012, respectively; 207,242 and 215,306 shares outstanding at September 30, 2013 and December 31, 2012, respectively	238	230
Additional paid-in capital	1,104,831	1,088,186
Accumulated deficit	-701,529	-726,230
Treasury stock, at cost, 30,824 shares at September 30, 2013 and 14,812 shares at December 31, 2012	-89,120	-43,343
Accumulated other comprehensive income	1,770	2,572
Total stockholdersâ€™ equity	316,190	321,415
Total liabilities, redeemable noncontrolling interest, and stockholdersâ€™ equity	$534,986	$547,389

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Accounts receivable, allowance	$630	$753
Inventory, allowance	$222	$268
Common stock, par value (USD per share)	$0.00	$0.00
Common stock, shares authorized	596,950	596,950
Common stock, shares issued	238,066	230,118
Common stock, shares outstanding	207,242	215,306
Treasury stock, shares	30,824	14,812

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues	$203,984	$207,584	$617,847	$635,403
Operating Expenses:	'	'	'	'
Direct cost of telephony services (excluding depreciation and amortization of $3,522, $3,722, $10,484 and $11,581, respectively)	52,882	55,245	161,590	175,063
Direct cost of goods sold	9,535	10,444	27,630	29,565
Selling, general and administrative	64,752	59,676	189,143	179,907
Marketing	59,133	51,361	169,132	159,739
Depreciation and amortization	8,459	8,110	24,639	25,272
Loss from abandonment of software assets	0	0	0	25,262
Total operating expenses	194,761	184,836	572,134	594,808
Income from operations	9,223	22,748	45,713	40,595
Other Income (Expense):	'	'	'	'
Interest income	97	30	208	80
Interest expense	-1,509	-1,402	-4,698	-4,719
Other (expense) income, net	-15	28	-71	5
Total other income (expense)	-1,427	-1,344	-4,561	-4,634
Income before income tax expense	7,796	21,404	41,152	35,961
Income tax expense	-3,811	-8,191	-16,673	-12,167
Net income	3,985	13,213	24,479	23,794
Plus: Net loss attributable to noncontrolling interest	222	0	222	0
Net income attributable to Vonage	$4,207	$13,213	$24,701	$23,794
Net income attributable to Vonage per common share:	'	'	'	'
Basic (USD per share)	$0.02	$0.06	$0.12	$0.11
Diluted (USD per share)	$0.02	$0.06	$0.11	$0.10
Weighted-average common shares outstanding:	'	'	'	'
Basic (in shares)	209,589	225,555	212,124	225,904
Diluted (in shares)	217,059	233,708	222,321	233,677

Consolidated_Statements_of_Ope1

Consolidated Statements of Operation (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Depreciation and amortization	$8,459	$8,110	$24,639	$25,272
Direct cost of telephony services	'	'	'	'
Depreciation and amortization	$3,522	$3,722	$10,484	$11,581

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net income	$3,985	$13,213	$24,479	$23,794
Other comprehensive income (loss):	'	'	'	'
Foreign currency translation adjustment	885	1,047	-802	902
Total other comprehensive income (loss)	885	1,047	-802	902
Comprehensive income	4,870	14,260	23,677	24,696
Comprehensive loss attributable to noncontrolling interest:	'	'	'	'
Add: Net loss	-222	0	-222	0
Total comprehensive loss attributable to noncontrolling interest	-222	0	-222	0
Comprehensive income attributable to Vonage	$5,092	$14,260	$23,899	$24,696

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net income	$24,479	$23,794
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization and impairment charges	22,859	23,491
Amortization of intangibles	1,780	1,781
Loss from abandonment of software assets	0	25,262
Deferred tax expense	15,751	10,367
Allowance for doubtful accounts	-135	926
Allowance for obsolete inventory	520	263
Amortization of debt related costs	1,190	980
Share-based expense	13,085	9,601
Changes in operating assets and liabilities:	'	'
Accounts receivable	-1,401	-5,404
Inventory	-6,575	34
Prepaid expenses and other current assets	-3,877	-2,188
Deferred customer acquisition costs	-437	-162
Other assets	1,856	-991
Accounts payable	-34,516	-15,610
Accrued expenses	18,467	-11,173
Deferred revenue	-939	-2,250
Other liabilities	47	76
Net cash provided by operating activities	52,154	58,797
Cash flows from investing activities:	'	'
Capital expenditures	-7,008	-4,557
Acquisition and development of software assets	-8,750	-10,184
Decrease in restricted cash	1,254	1,280
Net cash used in investing activities	-14,504	-13,461
Cash flows from financing activities:	'	'
Principal payments on capital lease obligations	-1,810	-1,540
Principal payments on notes	-17,500	-21,250
Proceeds received from issuance of notes payable	27,500	0
Debt related costs	-2,056	0
Common stock repurchases	-44,370	-8,431
Investments from redeemable noncontrolling interests	455	0
Proceeds from exercise of stock options, net of stock cancellation payment	3,568	1,093
Net cash used in financing activities	-34,213	-30,128
Effect of exchange rate changes on cash	-632	637
Net change in cash and cash equivalents	2,805	15,845
Cash and cash equivalents, beginning of period	97,110	58,863
Cash and cash equivalents, end of period	99,915	74,708
Cash paid during the periods for:	'	'
Interest	3,156	3,611
Income taxes	1,902	2,143
Non-cash financing transactions during the periods for:	'	'
Common stock repurchases	$1,099	$706

Consolidated_Statement_Of_Stoc

Consolidated Statement Of Stockholders' Equity And Redeemable Noncontrolling Interest (USD $)	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Income	Redeemable non-controlling interest
In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Income	Redeemable non-controlling interest
Balance at Dec. 31, 2012	$321,415	$230	$1,088,186	($726,230)	($43,343)	$2,572	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Stock option exercises	9,031	8	9,023	'	'	'	'
Stock option cancellation	-5,463	'	-5,463	'	'	'	'
Share-based expense	13,085	'	13,085	'	'	'	'
Share-based award activity	-952	'	'	'	-952	'	'
Common stock repurchases	-44,825	'	'	'	-44,825	'	'
Investment by redeemable noncontrolling interest	'	'	'	'	'	'	455
Foreign currency translation adjustment	-802	'	'	'	'	-802	0
Net income	24,479	'	'	24,701	'	'	-222
Balance at Sep. 30, 2013	$316,190	$238	$1,104,831	($701,529)	($89,120)	$1,770	$233

Basis_of_Presentation_and_Sign

Basis of Presentation and Significant Accounting Policies (Notes)

9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Significant Accounting Policies

Nature of Operations

Vonage Holdings Corp. (“Vonage”, “Company”, “we”, “our”, “us”) is incorporated as a Delaware corporation. We are a leading provider of low-cost communications services connecting people through cloud-connected devices worldwide. Customers in the United States represented 93% of our subscriber lines for our broadband telephone replacement services at September 30, 2013, with the balance primarily in Canada and the United Kingdom.

Unaudited Interim Financial Information

The accompanying unaudited interim consolidated financial statements and information have been prepared in accordance with accounting principles generally accepted in the United States and in accordance with the instructions for Form 10-Q. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, these financial statements contain all normal and recurring adjustments considered necessary to present fairly the financial position, results of operations, cash flows, and statement of stockholders’ equity for the periods presented. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year.

These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission on February 13, 2013.

Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of Vonage and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. We also consolidate a majority-owned entity in Brazil where we have the ability to exercise controlling influence. The ownership interest of the noncontrolling party is presented as redeemable noncontrolling interest.

Use of Estimates

Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates.

On an ongoing basis, we evaluate our estimates, including the following:

•

the useful lives of property and equipment, software costs, and intangible assets;

•

assumptions used for the purpose of determining share-based compensation using the Black-Scholes option pricing model (“Model”), and various other assumptions that we believe to be reasonable; the key inputs for this Model are our stock price at valuation date, exercise price, the dividend yield, risk-free interest rate, life in years, and historical volatility of our common stock; and

•

assumptions used in determining the need for, and amount of, a valuation allowance on net deferred tax assets.

We base our estimates on historical experience, available market information, appropriate valuation methodologies, and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Revenue Recognition

Revenues consist of telephony services revenues and customer equipment (which enables our telephony services) and shipping revenues. The point in time at which revenues are recognized is determined in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 104, Revenue Recognition, and Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605, Revenue Recognition.

At the time a customer signs up for our telephony services, there are the following deliverables:

•

Providing equipment, if any, to the customer that enables our telephony services; and

•

Providing telephony services.

The equipment is provided free of charge to our customers and in most instances there are no activation fees collected at sign-up. We record the fees collected for shipping the equipment to the customer, if any, as shipping and handling revenue at the time of shipment.

Telephony Services Revenue

Substantially all of our revenues are telephony services revenues, which are derived primarily from monthly subscription fees that customers are charged under our service plans. We also derive telephony services revenues from per minute fees for international calls if not covered under a plan, including applications for mobile devices and other stand-alone products, and for any calling minutes in excess of a customer’s monthly plan limits. Monthly subscription fees are automatically charged to customers’ credit cards, debit cards or electronic check payments ("ECP"), in advance and are recognized over the following month when services are provided. Revenues generated from international calls and from customers exceeding allocated call minutes under limited minute plans are recognized as services are provided, that is, as minutes are used, and are billed to a customer’s credit cards, debit cards or ECP in arrears. As a result of our multiple billing cycles each month, we estimate the amount of revenues earned from international calls and from customers exceeding allocated call minutes under limited minute plans but not billed from the end of each billing cycle to the end of each reporting period and record these amounts as accounts receivable. These estimates are based primarily upon historical minutes and have been consistent with our actual results.

We also provide rebates to customers who purchase their customer equipment from retailers and satisfy minimum service period requirements. These rebates in excess of activation fees are recorded as a reduction of revenues over the service period based upon the estimated number of customers that will ultimately earn and claim the rebates.

In the United States, we charge regulatory, compliance, E-911, and intellectual property-related fees on a monthly basis to defray costs, and to cover taxes that we are charged by the suppliers of telecommunications services. In addition, we charge customers Federal Universal Service Fund (“USF”) fees. We recognize revenue on a gross basis for USF and related fees. We record these fees as revenue when billed. All other taxes are recorded on a net basis.

Customer Equipment and Shipping Revenue

Customer equipment and shipping revenues, comprising an incidental portion of our revenue, derives from revenues from sales of customer equipment to wholesalers or directly to customers for replacement devices, or for upgrading their device at the time of customer sign-up for which we charge an additional fee. In addition, customer equipment and shipping revenues include the fees that customers are charged for shipping their customer equipment to them. Customer equipment and shipping revenues include sales to our retailers, who subsequently resell this customer equipment to customers. Revenues are reduced for payments to retailers and rebates to customers who purchased their customer equipment through these retailers, to the extent of customer equipment and shipping revenues.

Direct Cost of Telephony Services

Direct cost of telephony services consists primarily of direct costs that we pay to third parties in order to provide telephony services. These costs include access and interconnection charges that we pay to other telephone companies to terminate domestic and international phone calls on the public switched telephone network. In addition, these costs include the cost to lease phone numbers, to co-locate in other telephone companies’ facilities, to provide enhanced emergency dialing capabilities to transmit 911 calls, and to provide local number portability. These costs also include taxes that we pay on telecommunications services from our suppliers or are imposed by government agencies such as Federal USF and royalties for use of third parties’ intellectual property. These costs do not include indirect costs such as depreciation and amortization, payroll, and facilities costs. Our presentation of direct cost of telephony services may not be comparable to other similar companies.

Direct Cost of Goods Sold

Direct cost of goods sold consists primarily of costs that we incur when a customer signs up for our service. These costs include the cost of customer equipment for customers who subscribe through the direct sales channel in excess of activation fees. In addition, these costs include the amortization of deferred customer equipment, the cost of shipping and handling for customer equipment, the installation manual that accompanies the customer equipment, and the cost of certain promotions.

Development Expenses

Costs for research, including predevelopment efforts prior to establishing technological feasibility of software expected to be marketed, are expensed as incurred. Development costs are capitalized when technological feasibility has been established and anticipated future revenues support the recoverability of the capitalized amounts. Capitalization stops when the product is available for general release to customers. Due to the short time period between achieving technological feasibility and product release and the insignificant amount of costs incurred during such periods, we have not capitalized any software development, and have expensed these costs as incurred. These costs are included in selling, general and administrative expense.

Cash and Cash Equivalents

We maintain cash with several investment grade financial institutions. Highly liquid investments, which are readily convertible into cash, with original maturities of three months or less, are recorded as cash equivalents.

Certain Risks and Concentrations

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash equivalents and accounts receivable. They are subject to fluctuations in both market value and yield based upon changes in market conditions, including interest rates, liquidity, general economic conditions, and conditions specific to the issuers. Accounts receivable are typically unsecured and are derived from revenues earned from customers primarily located in the United States. A portion of our accounts receivable represents the timing difference between when a customer’s credit card is billed and the subsequent settlement of that transaction with our credit card processors. This timing difference is generally three days for substantially all of our credit card receivables. We have never experienced any accounts receivable write-offs due to this timing difference. In addition, we collect subscription fees in advance, minimizing our accounts receivable and bad debt exposure. If a customer’s credit card, debit card or ECP is declined, we generally suspend international calling capabilities as well as their ability to incur domestic usage charges in excess of their plan minutes. If the customer’s credit card, debit card or ECP could not be successfully processed during three billing cycles (i.e., the current and two subsequent monthly billing cycles), we terminate the account. In addition, we automatically charge any per minute fees to our customers’ credit card, debit card or ECP monthly in arrears. To further mitigate our bad debt exposure, a customer’s credit card, debit card or ECP will be charged in advance of their monthly billing if their international calling or overage charges exceed a certain dollar threshold.

Inventory

Inventory consists of the cost of customer equipment and is stated at the lower of cost or market, with cost determined using the average cost method. We provide an inventory allowance for customer equipment that has been returned by customers but may not be able to be re-issued to new customers or returned to the manufacturer for credit.

Property and Equipment

Property and equipment includes acquired assets and those accounted for under capital leases and consist principally of network equipment and computer hardware, furniture, software, and leasehold improvements. In addition, the lease of our corporate headquarters has been accounted for as a capital lease and is included in property and equipment. Network equipment and computer hardware and furniture are stated at cost with depreciation provided using the straight-line method over the estimated useful lives of the related assets, which range from three to five years. Leasehold improvements are amortized over their estimated useful life of the related assets or the life of the lease, whichever is shorter. The cost of renewals and substantial improvements is capitalized while the cost of maintenance and repairs is charged to operating expenses as incurred.

Our network equipment and computer hardware, which consists of routers, gateways, and servers that enable our telephony services, is subject to technological risks and rapid market changes due to new products and services and changing customer demand. These changes may result in future adjustments to the estimated useful lives or the carrying value of these assets, or both.

Software Costs

We capitalize certain costs, such as purchased software and internally developed software that we use for customer acquisition and customer care automation tools, in accordance with FASB ASC 350-40, “Internal-Use Software”. Computer software is stated at cost less accumulated amortization and the estimated useful life is two to five years.

As previously disclosed, we experienced delays and incremental costs during the course of the development and implementation of a new billing and ordering system by Amdocs Software Systems Limited and Amdocs, Inc. (collectively, "Amdocs") and the transition of customers to the system. We conducted discussions with Amdocs to resolve the issues associated with the billing and ordering system. Based on these discussions, and after our consideration of the progress made improving our overall IT infrastructure, the incremental time and costs to develop and implement the Amdocs system, as well as the expected reduction in capital expenditures, in June 2012 we and Amdocs determined that terminating the program was in the best interest of both parties. On July 30, 2012, we entered into a Settlement Agreement with Amdocs terminating the related license agreement. As a result, we wrote off our investment in the system of $25,262, net of settlement amounts to us, in the second quarter of 2012. This charge is recorded as loss from abandonment of software assets in the statement of operations.

Intangible Assets

Intangible assets acquired in the settlement of litigation or by direct purchase are accounted for based upon the fair value of assets received.

Patents and Patent Licenses

Patent rights acquired in the settlement of litigation or by direct purchase are accounted for based upon the fair value of assets received.

Long-Lived Assets

We evaluate impairment losses on long-lived assets used in operations when events and changes in circumstances indicate that the assets might be impaired. If our review indicates that the carrying value of an asset will not be recoverable, based on a comparison of the carrying value of the asset to the undiscounted future cash flows, the impairment will be measured by comparing the carrying value of the asset to its fair value. Fair value will be determined based on quoted market values, discounted cash flows or appraisals. Impairments of long-lived assets used in operations are recorded in the statement of operations as part of depreciation expense.

Debt Related Costs

Costs incurred in raising debt are deferred and amortized as interest expense using the effective interest method over the life of the debt.

Redeemable Noncontrolling Interest

We consolidate a majority-owned entity where we have the ability to exercise controlling influence. The ownership interest of the noncontrolling party is presented as noncontrolling interest. If we are required to repurchase the noncontrolling interest at fair value, subject to adjustment, under a put option or other contractual redemption requirement, we will report the noncontrolling interest as redeemable in the Consolidated Balance Sheets between liabilities and equity. We adjust the redeemable noncontrolling interest to the redemption values on each balance sheet date with changes recognized as an adjustment to retained earnings, or in the absence of retained earnings, as an adjustment to additional paid-in capital when it becomes probable the noncontrolling interest will become redeemable.

Derivatives

We do not hold or issue derivative instruments for trading purposes. However, in accordance with FASB ASC 815, “Derivatives and Hedging” (“FASB ASC 815”), we review our contractual obligations to determine whether there are terms that possess the characteristics of derivative financial instruments that must be accounted for separately from the financial instrument in which they are embedded. We would recognize these features, if any, as liabilities in our consolidated balance sheet at fair value each period and would recognize any change in the fair value in our statement of operations in the period of change. We would estimate the fair value of these liabilities using available market information and appropriate valuation methodologies.

Income Taxes

We recognize deferred tax assets and liabilities at enacted income tax rates for the temporary differences between the financial reporting bases and the tax bases of our assets and liabilities. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. Our net deferred tax assets primarily consist of net operating loss carry forwards (“NOLs”). We are required to record a valuation allowance against our net deferred tax assets to the extent we conclude that it is more likely than not that taxable income generated in the future will be insufficient to utilize the future income tax benefit from our net deferred tax assets (namely, the NOLs) prior to expiration. In the fourth quarter of 2011, we concluded that it was more likely than not that taxable income in the future would be sufficient to utilize a significant portion of the future income tax benefit from our net deferred tax assets (namely, the NOLs) prior to expiration and we released $325,601 of the valuation allowance. We periodically review this conclusion, which requires significant management judgment. In the future, if available evidence changes our conclusions, we will make an adjustment to the related valuation allowance and income tax expense at that time. The September 30, 2012 effective rate is less than the federal statutory rate due, in part, to our Canadian operations and certain discrete period items, which primarily consisted of adjustments related to stock compensation, including a non-cash deferred tax adjustment totaling $4,077 for certain stock compensation previously considered nondeductible under Section 162(m) of the Internal Revenue Code. The 2013 estimated annual effective tax rate is expected to approximate 41%, but may fluctuate due to the timing of other discrete period transactions.

We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution.

We have not had any unrecognized tax benefits. We recognize interest and penalties accrued related to unrecognized tax benefits as components of our income tax provision. We have not had any interest and penalties accrued related to unrecognized tax benefits.

Business Combinations

We account for business combinations using the acquisition method of accounting. The acquisition method of accounting requires that the purchase price, including the fair value of contingent consideration, of the acquisition be allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date.

Acquisition related costs, such as banking, legal, accounting and other costs incurred in connection with an acquisition are expensed as incurred in selling, general and administrative expense. We will include the results of all acquisitions in our Consolidated Financial Statements from the date of acquisition.

Fair Value of Financial Instruments

Effective January 1, 2008, we adopted FASB ASC 820-10-25, “Fair Value Measurements and Disclosures”. This standard establishes a framework for measuring fair value and expands disclosure about fair value measurements. We did not elect fair value accounting for any assets and liabilities allowed by FASB ASC 825, “Financial Instruments”.

FASB ASC 820-10 defines fair value as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. FASB ASC 820-10 describes the following three levels of inputs that may be used:

Level 1:

Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2:

Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level 3:

Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs.

Fair Value of Other Financial Instruments

The carrying amounts of our financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value because of their short maturities. The carrying amounts of our capital leases approximate fair value of these obligations based upon management’s best estimates of interest rates that would be available for similar debt obligations at September 30, 2013 and December 31, 2012. We believe the fair value of our debt at September 30, 2013 was approximately the same as its carrying amount as market conditions, including available interest rates, credit spread relative to our credit rating, and illiquidity, remain relatively unchanged from the issuance date of our debt on February 11, 2013 for a similar debt instrument.

Foreign Currency

Generally, the functional currency of our non-United States subsidiaries is the local currency. The financial statements of these subsidiaries are translated to United States dollars using month-end rates of exchange for assets and liabilities, and average rates of exchange for revenues, costs, and expenses. Translation gains and losses are deferred and recorded in accumulated other comprehensive income as a component of stockholders’ equity.

Share-Based Compensation

We account for share-based compensation in accordance with FASB ASC 718, “Compensation-Stock Compensation”. Under the fair value recognition provisions of this pronouncement, share-based compensation cost is measured at the grant date based on the fair value of the award, reduced as appropriate based on estimated forfeitures, and is recognized as expense over the applicable vesting period of the stock award using the accelerated method. The excess tax benefit associated with stock compensation deductions have not been recorded in additional paid-in capital. When evaluating whether an excess tax benefit has been realized, share based compensation deductions are not considered realized until NOLs are no longer sufficient to offset taxable income. Such excess tax benefits will be recorded when realized.

Earnings per Share

Net income per share has been computed according to FASB ASC 260, “Earnings per Share”, which requires a dual presentation of basic and diluted earnings per share (“EPS”). Basic EPS represents net income divided by the weighted average number of common shares outstanding during a reporting period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, including stock options and restricted stock units under our 2001 Stock Incentive Plan and 2006 Incentive Plan, were exercised or converted into common stock. The dilutive effect of outstanding stock options and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise and the amounts of average unrecognized compensation cost attributed to future services.

The following table sets forth the computation for basic and diluted net income per share for the three and nine months ended September 30, 2013 and 2012:

Three Months Ended

Nine Months Ended

September 30,

2013

2012

2013

2012

Numerator

Numerator for basic earnings per share-net income attributable to Vonage

4,207

13,213

24,701

23,794

Numerator for diluted earnings per share-net income attributable to Vonage

4,207

13,213

24,701

23,794

Denominator

Basic weighted average common shares outstanding

209,589

225,555

212,124

225,904

Dilutive effect of stock options and restricted stock units

7,470

8,153

10,197

7,773

Diluted weighted average common shares outstanding

217,059

233,708

222,321

233,677

Basic net income per share

0.02

0.06

0.12

0.11

Diluted net income per share

0.02

0.06

0.11

0.1

For the three and nine months ended September 30, 2013 and 2012, the following were excluded from the calculation of diluted earnings per common share because of their anti-dilutive effects:

Three Months Ended

Nine Months Ended

September 30,

2013

2012

2013

2012

Restricted stock units

2,063

2,093

2,029

2,114

Stock options

26,964

32,973

24,270

33,333

29,027

35,066

26,299

35,447

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income and other comprehensive items. Other comprehensive items include foreign currency translation adjustments.

Reclassifications

Certain reclassifications have been made to prior years’ financial statements in order to conform to the current year’s presentation. The reclassifications had no impact on net earnings previously reported.

Supplemental_Balance_Sheet_Acc

Supplemental Balance Sheet Account Information (Notes)	9 Months Ended
	Sep. 30, 2013
Supplemental Balance Sheet Account Information [Abstract]	'
Supplemental Balance Sheet Account Information	'
	Supplemental Balance Sheet Account Information
	Prepaid expenses and other current assets



		September 30,				December 31, 2012
		2013
	Nontrade receivables	$	7,914			$	6,599

	Services	7,685				6,092

	Telecommunications	601				1,503

	Insurance	1,155				389

	Marketing	1,247				639

	Other prepaids	772				265

	Prepaid expenses and other current assets	$	19,374			$	15,487


	Property and equipment, net



		September 30,				December 31, 2012
		2013
	Building (under capital lease)	$	25,709			$	25,709

	Network equipment and computer hardware	72,676				87,145

	Leasehold improvements	44,616				43,774

	Furniture	761				842

	Vehicles	109				97

		143,871				157,567

	Less: accumulated depreciation and amortization	(91,214		)		(97,034		)
	Property and equipment, net	$	52,657			$	60,533


	Software, net



		September 30,				December 31, 2012
		2013
	Purchased	$	44,497			$	89,538

	Licensed	909				909

	Internally developed	36,088				36,088

		81,494				126,535

	Less: accumulated amortization	(61,157		)		(71,428		)
	abandonment of software assets	—				(35,547		)

	Software, net	$	20,337			$	19,560


Debt related costs, net



	September 30,				December 31, 2012
	2013
Senior secured term loan	$	4,706			$	2,697

Less: accumulated amortization	(3,068		)		(1,925		)
Debt related costs, net	$	1,638			$	772


Restricted cash



	September 30,				December 31, 2012
	2013
Letter of credit-lease deposits	$	4,304			$	5,300

Letter of credit-energy curtailment program	—				258

	4,304				5,558

Cash reserves	97				98

Restricted cash	$	4,401			$	5,656


Intangible assets, net



	September 30,				December 31, 2012
	2013
Patents and patent licenses	$	18,164			$	18,164

Trademark	560				560

	18,724				18,724

Less: accumulated amortization	(13,823		)		(12,043		)
Intangible assets, net	$	4,901			$	6,681


Accrued expenses



	September 30,				December 31, 2012
	2013
Compensation and related taxes and temporary labor	$	17,832			$	16,376

Marketing	22,909				10,889

Taxes and fees	15,108				9,747

Litigation and settlements	264				89

Telecommunications	9,940				9,135

Other accruals	4,242				4,412

Customer credits	2,023				2,056

Professional fees	3,000				2,200

Accrued interest	6				5

Inventory	19				572

Credit card fees	326				306

Accrued expenses	$	75,669			$	55,787

Supplemental_Income_Statement_

Supplemental Income Statement Account Information (Notes)	9 Months Ended
	Sep. 30, 2013
Supplemental Income Statement Account Information [Abstract]	'
Supplemental Income Statement Account Information	'
	Supplemental Income Statement Account Information
	Amounts included in revenues



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	USF fees		$	17,148		$	17,705		$	52,378		$	58,128

	Disconnect fees		$	1,002		$	1,188		$	3,308		$	1,760

	Initial activation fees		$	291		$	438		$	964		$	1,685

	Customer equipment fees		$	101		$	155		$	271		$	545

	Equipment recovery fees		$	24		$	19		$	79		$	74

	Shipping and handling fees		$	248		$	409		$	938		$	972


	Amount included in direct cost of telephony services



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	USF costs		$	17,148		$	17,705		$	52,378		$	58,128


	Amount included in direct cost of goods sold



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	Shipping and handling cost		$	1,164		$	1,788		$	4,008		$	5,358


	Amount included in selling, general and administrative expense



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	Advertising costs		$	299		$	24		$	487		$	1,684

	Acquisition related costs		$	680		$	—		$	680		$	—


	Amount included in marketing



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	Advertising costs		$	38,997		$	30,266		$	106,963		$	100,121





Depreciation and amortization expense



		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
Network equipment and computer hardware		$	3,382		$	3,658		$	10,029		$	11,454

Software		2,826			2,281			7,975			7,213

Capital leases		549			550			1,647			1,650

Other leasehold improvements		1,064			993			3,100			2,990

Furniture		32			29			88			103

Vehicles		1			4			9			12

Patents		594			594			1,782			1,782

		8,448			8,109			24,630			25,204

Property and equipment impairments		11			1			9			13

Software impairments		—			—			—			55

Depreciation and amortization expense		$	8,459		$	8,110		$	24,639		$	25,272


Amount included in interest expense



		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
Debt related costs amortization		$	407		$	291		$	1,190		$	980


Amount included in other income (expense), net



		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
Net (loss) income resulting from foreign exchange transactions		$	(15	)	$	28		$	(77	)	$	5

LongTerm_Debt_and_Revolving_Cr

Long-Term Debt and Revolving Credit Facility (Notes)	9 Months Ended
Long-Term Debt and Revolving Credit Facility (Notes)	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Long-Term Debt And Revolving Credit Facility	'
	Long-Term Debt and Revolving Credit Facility
	A schedule of long-term debt at September 30, 2013 and December 31, 2012 is as follows:


		September 30,		December 31,
		2013		2012
	3.125-3.625% Credit Facility - due 2016	$	29,167	$	—
	3.125-3.625% Credit Facility - due 2016	$	29,167	$	—
	3.25-3.75% Credit Facility - due 2014	—		14,167
	3.25-3.75% Credit Facility - due 2014	—		14,167

	At September 30, 2013, future payments under long-term debt obligations over each of the next five years and thereafter were as follows:



		Credit Facility
	2013	$	5,833
	2013	$	5,833
	2014	23,333
	2014	23,333
	2015	23,334
	2015	23,334
	Minimum future payments of principal	52,500
	Minimum future payments of principal	52,500
	Less: current portion	23,333
	Less: current portion	23,333
	Long-term portion	$	29,167
	Long-term portion	$	29,167
	July 2011 Financing
	On July 29, 2011, we entered into a credit agreement (the "2011 Credit Facility") consisting of an $85,000 senior secured term loan and a $35,000 revolving credit facility. The co-borrowers under the 2011 Credit Facility were our wholly owned subsidiary, Vonage America Inc., and us. Obligations under the 2011 Credit Facility were guaranteed, fully and unconditionally, by our other United States subsidiaries and were secured by substantially all of the assets of each borrower and each of the guarantors.
	Use of Proceeds
	We used $100,000 of the net available proceeds of the 2011 Credit Facility, plus $31,000 of cash on hand, to retire all of the debt under our prior credit facility entered into in 2010, including a $1,000 prepayment fee to holders of that credit facility. We also incurred $2,697 of fees in connection with the 2011 Credit Facility, which was amortized to interest expense over the life of the debt using the effective interest method.

	2013 Financing
	On February 11, 2013 we entered into Amendment No. 1 to the 2011 Credit Agreement (as further amended by Amendment No. 2 to our 2011 Credit Facility, the "2013 Credit Facility"). The 2013 Credit Facility consists of a $70,000 senior secured term loan and a $75,000 revolving credit facility. The co-borrowers under the 2013 Credit Facility are our wholly owned subsidiary, Vonage America Inc., and us. Obligations under the 2013 Credit Facility are guaranteed, fully and unconditionally, by our other United States subsidiaries and are secured by substantially all of the assets of each borrower and each of the guarantors. On July 26, 2013 we entered into Amendment No. 2 to our 2011 Credit Agreement, which amends our financial covenant related to our consolidated fixed charge coverage ratio by increasing the amount of restricted payments excluded from such calculation from $50,000 to $80,000.

	Use of Proceeds
	The net proceeds received of $27,500 from the senior secured term loan and the undrawn revolving credit facility under the 2013 Credit Facility will be used for general corporate purposes. We also incurred $2,009 of fees in connection with the 2013 Credit Facility, which is amortized, along with the unamortized fees of $670 in connection with the 2011 Credit Facility, to interest expense over the life of the debt using the effective interest method.

	2013 Credit Facility Terms
	The following description summarizes the material terms of the 2013 Credit Facility:
	The loans under the 2013 Credit Facility mature in February 2016. Principal amounts under the 2013 Credit Facility are repayable in quarterly installments of $5,833 per quarter for the senior secured term loan. The unused portion of our revolving credit facility incurs a 0.45% commitment fee.
	Outstanding amounts under the 2013 Credit Facility, at our option, will bear interest at:

	•	LIBOR (applicable to one-, two-, three- or six-month periods) plus an applicable margin equal to 3.125% if our consolidated leverage ratio is less than 0.75 to 1.00, 3.375% if our consolidated leverage ratio is greater than or equal to 0.75 to 1.00 and less than 1.50 to 1.00, and 3.625% if our consolidated leverage ratio is greater than or equal to 1.50 to 1.00, payable on the last day of each relevant interest period or, if the interest period is longer than 3 months, each day that is three months after the first day of the interest period, or

	•	the base rate determined by reference to the highest of (a) the federal funds effective rate from time to time plus 0.50%, (b) the prime rate of JPMorgan Chase Bank, N.A., and (c) the LIBOR rate applicable to one month interest periods plus 1.00%, plus an applicable margin equal to 2.125% if our consolidated leverage ratio is less than 0.75 to 1.00, 2.275% if our consolidated leverage ratio is greater than or equal to 0.75 to 1.00 and less than 1.50 to 1.00, and 2.625% if our consolidated leverage ratio is greater than or equal to 1.50 to 1.00, payable on the last business day of each March, June, September, and December and the maturity date of the 2013 Credit Facility.
	The 2013 Credit Facility provides greater flexibility to us in funding acquisitions and restricted payments, such as stock buybacks, than the 2011 Credit Facility.
	We may prepay the 2013 Credit Facility at our option at any time without premium or penalty. The 2013 Credit Facility is subject to mandatory prepayments in amounts equal to:

	•	100% of the net cash proceeds from any non-ordinary course sale or other disposition of our property and assets for consideration in excess of a certain amount subject to customary reinvestment provisions and certain other exceptions and

	•	100% of the net cash proceeds received in connection with other non-ordinary course transactions, including insurance proceeds not otherwise applied to the relevant insurance loss.
	Subject to certain restrictions and exceptions, the 2013 Credit Facility permits us to obtain one or more incremental term loans and/or revolving credit facilities in an aggregate principal amount of up to $60,000 plus an amount equal to repayments of the senior secured term loan upon providing documentation reasonably satisfactory to the administrative agent, without the consent of the existing lenders under the 2013 Credit Facility. The 2013 Credit Facility includes customary representations and warranties and affirmative covenants of the borrowers. In addition, the 2013 Credit Facility contains customary negative covenants, including, among other things, restrictions on the ability of us and our subsidiaries to consolidate or merge, create liens, incur additional indebtedness, dispose of assets, consummate acquisitions, make investments, and pay dividends and other distributions. We must also comply with the following financial covenants:

	•	a consolidated leverage ratio of no greater than 2.00 to 1.00;

	•	a consolidated fixed coverage charge ratio of no less than 1.75 to 1.00 subject to adjustment to exclude up to $80,000 in specified restricted payments;

	•	minimum cash of $25,000 including the unused portion of the revolving credit facility or $35,000 in the event of certain specified corporate actions; and

	•	maximum capital expenditures not to exceed $55,000 during any fiscal year, provided that the unused amount of any permitted capital expenditures in any fiscal year may be carried forward to the next following fiscal year; in addition, annual excess cash flow up to $8,000 increases permitted capital expenditures.
	As of June 30, 2013, we were in compliance with all covenants, including financial covenants, for the 2013 Credit Facility.
The 2013 Credit Facility contains customary events of default that may permit acceleration of the debt. During the continuance of a payment default, interest will accrue at a default interest rate of 2% above the interest rate which would otherwise be applicable, in the case of loans, and at a rate equal to the rate applicable to base rate loans plus 2%, in the case of all other amounts.

Common_Stock_Notes

Common Stock (Notes)	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
Common Stock	'
	Common Stock
	Net Operating Loss Rights Agreement
	On June 7, 2012, we entered into a Tax Benefits Preservation Plan ("Preservation Plan") designed to preserve stockholder value and tax assets. Our ability to use our tax attributes to offset tax on U.S. taxable income would be substantially limited if there were an "ownership change" as defined under Section 382 of the U.S. Internal Revenue Code. In general, an ownership change would occur if one or more "5-percent shareholders," as defined under Section 382, collectively increase their ownership in us by more than 50 percent over a rolling three-year period.
	In connection with the adoption of the Preservation Plan, our board of directors declared a dividend of one preferred share purchase right for each outstanding share of the Company’s common stock. The preferred share purchase rights were distributed to stockholders of record as of June 18, 2012, as well as to holders of the Company's common stock issued after that date, but will only be activated if certain triggering events under the Preservation Plan occur.
	Under the Preservation Plan, preferred share purchase rights will work to impose significant dilution upon any person or group which acquires beneficial ownership of 4.9% or more of the outstanding common stock, without the approval of our board of directors, from and after June 7, 2012. Stockholders that own 4.9% or more of the outstanding common stock as of the opening of business on June 7, 2012, will not trigger the preferred share purchase rights so long as they do not (i) acquire additional shares of common stock or (ii) fall under 4.9% ownership of common stock and then re-acquire shares that in the aggregate equal 4.9% or more of the common stock.
	The Preservation Plan was set to expire no later than the close of business June 7, 2013, unless extended by our board of directors. On April 4, 2013, after consultation with our advisors, our board of directors determined to extend the Preservation Plan through June 7, 2015, subject to ratification of the extension by stockholders at the Vonage 2013 annual meeting of stockholders. On June 6, 2013, at the Vonage 2013 annual meeting of stockholders, stockholders ratified the extension of the Preservation Plan through June 7, 2015.
	Common Stock Repurchases
	On July 25, 2012, our board of directors authorized a program to repurchase up to $50,000 of Vonage common stock (the "$50,000 repurchase program") through December 31, 2013. The specific timing and amount of repurchases would vary based on available capital resources and other financial and operational performance, market conditions, securities law limitations, and other factors. The repurchases would be made using our cash resources.
	We repurchased the following shares of common stock with cash resources under the $50,000 repurchase program during the three and nine months ended September 30, 2013:


		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2013		2013
	Shares of common stock repurchased	—		2,189

	Value of common stock repurchased	$	—	$	5,374

	On February 7, 2013, our board of directors discontinued the remainder of our existing $50,000 repurchase program effective at the close of business on February 12, 2013 with $16,682 of availability remaining, and authorized a new program to repurchase up to $100,000 of Vonage common stock (the "$100,000 repurchase program") by December 31, 2014. The specific timing and amount of repurchases will vary based on available capital resources and other financial and operational performance, market conditions, securities law limitations, and other factors. The repurchases will be made using our cash resources. The $100,000 repurchase program may be suspended or discontinued at any time without prior notice.
	We repurchased the following shares of common stock with cash resources under the $100,000 repurchase program during the three and nine months ended September 30, 2013*:


		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2013		2013
	Shares of common stock repurchased	4,690		13,485

	Value of common stock repurchased	$	14,680	$	39,138

	* including 345 shares, or $1,092, of common stock repurchases settled in October 2013; excluding commission of $7.
	As of September 30, 2013, approximately $60,862 remained of our $100,000 repurchase program. The repurchase program expires on December 31, 2014 but may be suspended or discontinued at any time without notice.
	In any period under either repurchase program, cash used in financing activities related to common stock repurchases may differ from the comparable change in stockholders' equity, reflecting timing differences between the recognition of share repurchase transactions and their settlement for cash.
	Stock Option Cancellation
	As part of our strategy to build shareholder value and to facilitate our goal of reducing the number of shares of common stock outstanding, on February 19, 2013, we entered into an agreement with our Chief Executive Officer to cancel a total of 4,500 of his vested stock options for $5,463. The payment reflects a discount, in favor of the Company, from the closing price of the common stock on the New York Stock Exchange on February 19, 2013.

Commitments_and_Contingencies_

Commitments and Contingencies (Notes)	9 Months Ended
Commitments and Contingencies (Notes)	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Commitments and Contingencies
	Litigation
	IP Matters
	Bear Creek Technologies, Inc. On February 22, 2011, Bear Creek Technologies, Inc. (“Bear Creek”) filed a lawsuit against Vonage Holdings Corp., Vonage America, Inc., and Vonage Marketing LLC in the United States District Court for the Eastern District of Virginia (Norfolk Division) alleging that Vonage's products and services are covered by United States Patent No. 7,889,722, entitled “System for Interconnecting Standard Telephony Communications Equipment to Internet Protocol Networks” (the “722 Patent”). The suit also named numerous other defendants, including Verizon Communications, Inc., Comcast Corporation, Time-Warner Cable, Inc., AT&T, Inc., and T-Mobile USA Inc. On August 17, 2011, the Court dismissed Bear Creek's case against the Vonage entities, as well as all the other defendants, except for one defendant. Later, on August 17, 2011, Bear Creek re-filed its complaint concerning the '722 Patent in the United States District Court for the District of Delaware against the same Vonage entities. In its Delaware complaint, Bear Creek alleges that Vonage is infringing one or more claims of the '722 Patent. In addition, Bear Creek alleges that Vonage is contributing to and inducing infringement of one or more claims of the '722 Patent. On September 28, 2011, Vonage filed a motion to dismiss Bear Creek's claims for induced, contributory, and willful infringement, which was denied on September 27, 2012. On January 25, 2012, Bear Creek filed a motion with the United States Judicial Panel on Multidistrict Litigation seeking to transfer and consolidate its litigation against Vonage with thirteen separate actions Bear Creek filed in the U.S. District Courts for Delaware and the Eastern District of Virginia. On May 2, 2012, the Multidistrict Litigation Panel granted Bear Creek's motion and ordered the coordination or consolidation for pretrial proceedings of all fourteen actions in the U.S. District Court for the District of Delaware. On October 11, 2012, Vonage filed an answer to Bear Creek's complaint, including counterclaims of non-infringement and invalidity of the '722 patent. On November 5, 2012, Bear Creek filed an answer to Vonage's counterclaims. On March 1, 2013, several defendants including Vonage moved the Court to stay the case pending resolution of the reexamination of the '722 patent requested by Cisco Systems, Inc. (“Cisco”) as described below; the motion was granted on July 17, 2013, and the case is now stayed pending the resolution of the reexamination.
	On March 8, 2012, a third-party requested the United States Patent and Trademark Office ("USPTO") to reexamine the validity of the asserted '722 Patent. The USPTO granted the request on April 26, 2012, and subsequently issued an initial Office Action rejecting all of the '722 Patent claims. After reconsideration based on statements made by the patentee, the USPTO on September 19, 2012, reversed its initial rejection, and confirmed all claims as patentable over the references cited in the reexamination request. A second request for reexamination of the '722 Patent was filed on September 12, 2012, by Cisco, challenging the validity of the '722 Patent. Cisco's request was granted by the USPTO on November 28, 2012. On March 26, 2013, the USPTO issued an Office Action rejecting all claims of the '722 patent as invalid. Bear Creek responded to the Office Action on May 28, 2013, requesting withdrawal of the USPTO's rejection. Cisco responded to Bear Creek's submission on June 26, 2013. A third request for reexamination of the '722 Patent was filed on September 14, 2012, and the USPTO denied this request on December 6, 2012.
	OpinionLab, Inc. On July 18, 2012, OpinionLab, Inc. (“OpinionLab”) filed a lawsuit against IPerceptions, Inc. and IPerceptions US, Inc. (collectively, “IPerceptions”) in the United States District Court for the Northern District of Illinois (Eastern Division) alleging claims of patent infringement, breach of contract, misappropriation of trade secrets, and tortious interference with business expectancy. On August 16, 2012, OpinionLab filed an amended complaint, adding Vonage Marketing LLC and Vonage Holdings Corp. as defendants, and alleging that Vonage's products and services are covered by United States Patent Nos. 6,421,724, 6,606,581, 6,928,392, 7,085,820, 7,370,285, 8,024,668, and 8,041,805. OpinionLab alleged direct, indirect and willful infringement by Vonage. IPerceptions, the supplier to Vonage of the accused product in this lawsuit, has agreed to fully defend and indemnify Vonage in this lawsuit. On September 11, 2012, IPerceptions and Vonage each moved to dismiss OpinionLab's indirect and willful patent infringement claims. The motions were denied on November 8, 2012. Vonage answered the complaint on December 7, 2012. On July 11, 2013, the Court issued an order setting the case schedule. On September 6, 2013, OpinionLab filed a second amended complaint, which was answered by defendants on September 23, 2013. On October 14, 2013, OpinionLab made an unopposed motion to consolidate the case for pre-trial purposes with Case No. 13-CV-1574, OpinionLab, Inc. v Qualtrics Labs, Inc., currently pending in the United States District Court for the Northern District of Illinois. The motion was granted October 17, 2013.
	RPost Holdings, Inc. On August 24, 2012, RPost Holdings, Inc., RPost Communications Limited, and RMail Limited (collectively, “RPost”) filed a lawsuit against StrongMail Systems, Inc. (“StrongMail”) in the United States District Court for the Eastern District of Texas (Marshall Division) alleging that StrongMail's products and services, including its electronic mail marketing services, are covered by United States Patent Nos. 8,224,913, 8,209,389, 8,161,104, 7,966,372, and 6,182,219. On January 16, 2013, StrongMail moved the Court to transfer the venue of the lawsuit to the Northern District of California. That motion was denied by the Court on August 19, 2013. On February 11, 2013, RPost filed an amended complaint, adding 27 new defendants, including Vonage America Inc. RPost's amended complaint alleges willful infringement of the RPost patents by Vonage and each of the other new defendants because they are customers of StrongMail. StrongMail has agreed to fully defend and indemnify Vonage in this lawsuit. Vonage answered the complaint on May 7, 2013.
	Straight Path IP Group Inc. On November 5, 2013, Straight Path IP Group Inc., a subsidiary of Straight Path Communications Inc., announced that it has filed a patent infringement action against Vonage in the U.S. District Court for the Eastern District of Virginia seeking damages and injunctive relief. Vonage has not yet been served with the complaint.
	Commercial Litigation
	Merkin & Smith, et als. On September 27, 2013, Arthur Merkin and James Smith filed a putative class action lawsuit against Vonage America, Inc. in the Superior Court of the State of California, County of Los Angeles, alleging that Vonage violated California’s Unfair Competition Law by charging its customers fictitious 911 taxes and fees. On October 16, 2013, further pleadings and discovery in the case were stayed pending an initial status conference scheduled for February 7, 2014. On October 30, 2013, Vonage filed a notice removing the case to the United States District Court for the Central District of California. On October 30, 2013 the case was assigned to a United States District Judge and a Magistrate Judge, with the parties directed to the Court’s Alternative Dispute Resolution program.
	From time to time, in addition to those identified above, we are subject to legal proceedings, claims, investigations, and proceedings in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. From time to time we receive letters or other communications from third parties inviting us to obtain patent licenses that might be relevant to our business or alleging that our services infringe upon third party patents or other intellectual property. In accordance with generally accepted accounting principles, we make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss or range of loss can be reasonably estimated. These provisions, if any, are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. We believe that we have valid defenses with respect to the legal matters pending against us and are vigorously defending these matters. Given the uncertainty surrounding litigation and our inability to assess the likelihood of a favorable or unfavorable outcome in the above noted matters and our inability to reasonably estimate the amount of loss or range of loss, it is possible that the resolution of one or more of these matters could have a material adverse effect on our consolidated financial position, cash flows or results of operations.
	Regulation
	Telephony services are subject to a broad spectrum of state and federal regulations. Because of the uncertainty over whether Voice over Internet Protocol (“VoIP”) should be treated as a telecommunications or information service, we have been involved in a substantial amount of state and federal regulatory activity. Implementation and interpretation of the existing laws and regulations is ongoing and is subject to litigation by various federal and state agencies and courts. Due to the uncertainty over the regulatory classification of VoIP service, there can be no assurance that we will not be subject to new regulations or existing regulations under new interpretations, and that such change would not introduce material additional costs to our business.
	Federal - Net Neutrality
	Clear and enforceable net neutrality rules would make it more difficult for broadband Internet service providers to block or discriminate against Vonage service. Also explicitly applying net neutrality rules to wireless broadband Internet service could create greater opportunities for VoIP applications that run on wireless broadband Internet service. In October 2009, the FCC proposed the adoption of enforceable net neutrality rules for both wired and wireless broadband Internet service providers. The proposed rules would prohibit wired and wireless broadband Internet service providers from blocking or hindering lawful content, applications, or services and from unreasonably discriminating when transmitting lawful network traffic. In addition, broadband Internet service providers would have to publicly disclose certain information about their network management practices. In December 2010, the FCC adopted enforceable net neutrality rules based on its October 2009 proposal. All of the proposed rules in the October 2009 proposal applied to wired broadband Internet providers. The FCC applied some but not all of the proposed rules to wireless broadband service. Wireless broadband Internet services providers are prohibited from blocking or hindering voice or video applications that compete with the broadband Internet service provider's voice or video services. Wireless providers are also subject to transparency requirements, but they are not subject to the prohibition on unreasonable discrimination that applies to wired broadband Internet services providers. Final rules were filed in the Federal Register in September 2011. Shortly thereafter, a number of parties filed appeals of the rules in various federal circuit courts; some alleging that the FCC lacks authority to apply net neutrality rules to broadband service providers and some alleging that the rules did not go far enough. The D.C. Circuit Court of Appeals was selected by lottery to decide the appeals and the appeals alleging that the rules did not go far enough were dropped. The appeals alleging that the FCC lacks authority to apply the rules are pending. The D.C. Circuit Court of Appeals heard oral arguments on the appeal on September 9, 2013.
	Federal - Intercarrier Compensation
	On February 9, 2011, the FCC released a Notice of Proposed Rulemaking on reforming universal service and the intercarrier compensation (“ICC”) system that governs payments between telecommunications carriers primarily for terminating traffic. In particular, the FCC indicated that it has never determined the ICC obligations for VoIP service and sought comment on a number of proposals for how VoIP should be treated in the ICC system. The FCC's adoption of an ICC proposal will impact Vonage's costs for telecommunications services. On October 27, 2011, the FCC adopted an order reforming universal service and ICC. The FCC order provides that VoIP originated calls will be subject to interstate access charges for long distance calls and reciprocal compensation for local calls that terminate to the public switched telephone network (“PSTN”). It also subjected PSTN originated traffic directed to VoIP subscribers to similar ICC obligations. The termination charges for all traffic, including VoIP originated traffic, will transition over several years to a bill and keep arrangement (i.e., no termination charges). Numerous parties filed appeals of the FCC order in multiple federal circuit courts of appeal. The 10th Circuit Court of Appeals was selected by lottery to decide the appeals. The appeals are pending.
	Federal - Universal Service Contribution Reform
	On April 30, 2012, the FCC released a Further Notice of Proposed Rulemaking on reforming federal universal service fund (“USF”) contributions. Currently USF contributions are assessed on the interstate and international revenue of traditional telephone carriers and interconnected VoIP providers like Vonage. The level of USF assessments on these providers has been going up over time because of decreases in the revenue subject to assessment due to substitution of non-assessable services such as non-interconnected VoIP services. If the FCC does reform USF contributions, it is likely that Vonage's contribution burden will decline.
	Federal - Rural Call Completion Issues
	On February 7, 2013, the FCC released a Notice of Proposed Rulemaking on rural call completion issues. The Notice of Proposed Rulemaking (NPRM) proposed new detailed reporting requirements to gauge rural call completion performance. Rural carriers have argued that VoIP provider call completion performance to rural areas is generally poor. On October 28, 2013, the FCC adopted an order on rural call completion that imposes new reporting obligations and restricts certain call signaling practices. We could be subject to an FCC enforcement action in the future in the event the FCC took the position that our rural call completion performance is inadequate or we were not compliant with the FCC’s order.
	Federal - Numbering Rights
	On April 18, 2013, the FCC issued a Notice of Proposed Rulemaking (NPRM) that proposes to modify FCC rules to allow VoIP providers to directly access telephone numbers. In addition, the FCC granted a waiver from its existing rules to allow Vonage to conduct a trial of direct access to telephone numbers. The trial will allow the FCC to obtain real-world data on direct access to telephone numbers by VoIP providers to inform consideration of the NPRM. Direct access to telephone numbers would facilitate IP to IP interconnection, which may allow VoIP providers to provide higher quality, lower cost services, promote the deployment of innovative new voice services, and experience reductions in the cost of telephony services. Vonage is currently conducting a trial of direct access to telephone numbers in certain markets and has been filing the required reports on the trial with the FCC.
	Pakistan Termination Rate Increase
	On October 1, 2012, Pakistani carriers formed the International Clearing House (ICH). This cartel subsequently took action to increase the cost to terminate international calls to Pakistan by approximately 500 percent. As a result of the implementation of higher termination costs, Vonage was forced to remove Pakistan from unlimited calling in its Vonage World plan. Vonage filed a petition at the FCC, shortly after the ICH rates became effective, seeking an order prohibiting U.S. carriers from paying the new higher ICH rates. On March 5, 2013, the FCC issued an order that prohibits U.S. carriers from paying more than the prevailing termination rate prior to the implementation of the ICH rates. In addition to the Vonage challenge in the U.S., a Pakistani carrier challenged the ICH action under Pakistani competition law. After the trial court found that the ICH violated Pakistani competition law, the Supreme Court of Pakistan overturned the trial court decision and remanded the case to the Competition Commission of Pakistan (CCP). On April 30, 2013, the CCP issued an order that holds that the ICH violates Pakistani competition law. On May 9, 2013, the Sindh High Court temporarily suspended the CCP order while the court considers constitutional challenges to the order made by several Pakistani carriers. Despite favorable action by both U.S. and Pakistani authorities, it is currently unclear if or how long it will take for international termination rates in Pakistan to return to a more competitive level.
	State Telecommunications Regulation
	In general, the focus of interconnected VoIP telecommunications regulation is at the federal level. On November 12, 2004, the FCC issued a declaratory ruling providing that our service is subject to federal regulation and preempted the Minnesota Public Utilities Commission from imposing certain of its regulations on us. The FCC's decision was based on its conclusion that our service is interstate in nature and cannot be separated into interstate and intrastate components. On March 21, 2007, the United States Court of Appeals for the 8th Circuit affirmed the FCC's declaratory ruling preempting state regulation of our service. The 8th Circuit found that it is impossible for us to separate our interstate traffic from our intrastate traffic because of the nomadic nature of the service. As a result, the 8th Circuit held that it was reasonable for the FCC to preempt state regulation of our service. The 8th Circuit was clear, however, that the preemptive effect of the FCC's declaratory ruling may be reexamined if technological advances allow for the separation of interstate and intrastate components of the nomadic VoIP service. Therefore, the preemption of state authority over our service under this ruling generally hinges on the inability to separate the interstate and intrastate components of the service.While this ruling does not exempt us from all state oversight of our service, it effectively prevents state telecommunications regulators from imposing certain burdensome and inconsistent market entry requirements and certain other state utility rules and regulations on our service. State regulators continue to probe the limits of federal preemption in their attempts to apply state telecommunications regulation to interconnected VoIP service. On July 16, 2009, the Nebraska Public Service Commission and the Kansas Corporation Commission filed a petition with the FCC seeking a declaratory ruling or, alternatively, adoption of a rule declaring that state authorities may apply universal service funding requirements to nomadic VoIP providers. We participated in the FCC proceedings on the petition. On November 5, 2010, the FCC issued a declaratory ruling that allowed states to assess state USF on nomadic VoIP providers on a going forward basis provided that the states comply with certain conditions to ensure that imposing state USF does not conflict with federal law or policy. We expect that state public utility commissions and state legislators will continue their attempts to apply state telecommunications regulations to nomadic VoIP service.
	Stand-by Letters of Credit
	We had stand-by letters of credit totaling $4,304 and $5,558, as of September 30, 2013 and December 31, 2012, respectively.
	End-User Commitments
	We are obligated to provide telephone services to our registered end-users. The costs related to the potential utilization of minutes sold are expensed as incurred. Our obligation to provide this service is dependent on the proper functioning of systems controlled by third-party service providers. We do not have a contractual service relationship with some of these providers.
	Vendor Commitments
	We have committed to lease a data center from a vendor. We have committed to pay this vendor approximately $300 in 2013 and $800 in 2014.
	We have committed to purchase telecom related services from a vendor. We have committed to pay this vendor approximately $600 in 2013, $2,600 in 2014, $2,300 in 2015, and $1,800 in 2016 respectively. We may terminate the contract sooner subject to a minimum payment of $2,300 .
	State and Municipal Taxes
	In accordance with generally accepted accounting principles, we make a provision for a liability for taxes when it is both probable that a liability has been incurred and the amount of the liability or range of liability can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. For a period of time, we did not collect or remit state or municipal taxes (such as sales, excise, utility, use, and ad valorem taxes), fees or surcharges (“Taxes”) on the charges to our customers for our services, except that we historically complied with the New Jersey sales tax. We have received inquiries or demands from a number of state and municipal taxing and 911 agencies seeking payment of Taxes that are applied to or collected from customers of providers of traditional public switched telephone network services. Although we have consistently maintained that these Taxes do not apply to our service for a variety of reasons depending on the statute or rule that establishes such obligations, we are now collecting and remitting sales taxes in certain of those states including a number of states that have changed their statutes to expressly include VoIP. In addition, many states address how VoIP providers should contribute to support public safety agencies, and in those states we remit fees to the appropriate state agencies. We could also be contacted by state or municipal taxing and 911 agencies regarding Taxes that do explicitly apply to VoIP and these agencies could seek retroactive payment of Taxes. As such, we have a reserve of $1,595 as of September 30, 2013 as our best estimate of the potential tax exposure for any retroactive assessment. We believe the maximum estimated exposure for retroactive assessments is approximately $4,500 as of September 30, 2013.

Redeemable_Noncontrolling_Inte

Redeemable Noncontrolling Interest (Notes)	9 Months Ended
Redeemable Noncontrolling Interest (Notes)	Sep. 30, 2013
Noncontrolling Interest [Abstract]	'
Redeemable Noncontrolling Interest	'
	Redeemable Noncontrolling Interest
	In the third quarter of 2013, we formed a consolidated foreign subsidiary in Brazil in connection with our previously announced joint venture in Brazil, creating a redeemable noncontrolling interest. The redeemable noncontrolling interest consists of the 30.0% interest in this subsidiary held by our joint venture partner.
	Pursuant to the stockholder agreement governing the joint venture, we have the right to purchase this noncontrolling interest (“call right”) from the joint venture partner and our joint venture partner has the right to sell the noncontrolling interest (“put right”) to us subject to certain triggering events. The amounts at which the call right can be exercised are based on appraised value as prescribed by the stockholder agreement, subject to certain adjustments ranging from 50% to 150%, multiplied by the noncontrolling interest holder’s percentage ownership of the subsidiary that is subject to the triggering event. The amounts at which the put right can be exercised are based on appraised value as prescribed by the stockholder agreement, subject to certain adjustments ranging from 50% to 120%, multiplied by the noncontrolling interest holder’s percentage ownership of the subsidiary that is subject to the triggering event. We adjust the redeemable noncontrolling interest to the redemption values at the end of each reporting period should it become probable that the noncontrolling interest will be redeemable. At that time the changes in the noncontrolling interest will be recognized as an adjustment to retained earnings, or in the absence of retained earnings, as an adjustment to additional paid-in capital.

Subsequent_Events_Notes

Subsequent Events (Notes)	9 Months Ended
Subsequent Events (Notes)	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	Subsequent Events
	On October 9, 2013, we entered into a definitive agreement to acquire Vocalocity, Inc. ("Vocalocity"), a hosted VoIP provider to small and medium businesses. Subject to customary closing conditions, we will acquire Vocalocity for $130,000, including approximately 8,019 shares of Vonage common stock priced on the day of announcement (which shares have an aggregate value of approximately $25,000) and cash consideration of $105,000, subject to adjustments including for closing cash and working capital of Vocalocity, reductions for indebtedness and transaction expenses of Vocalocity that remain unpaid as of closing, and deposits into the escrow funds, pursuant to the definitive agreement. We expect to finance the transaction through $30,000 of cash and $75,000 from our credit facility.

Basis_of_Presentation_and_Sign1

Basis of Presentation and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Principles of Consolidation

Use of Estimates

On an ongoing basis, we evaluate our estimates, including the following:

•

the useful lives of property and equipment, software costs, and intangible assets;

•

assumptions used in determining the need for, and amount of, a valuation allowance on net deferred tax assets.

Revenue Recognition

At the time a customer signs up for our telephony services, there are the following deliverables:

•

Providing equipment, if any, to the customer that enables our telephony services; and

•

Providing telephony services.

Telephony Services Revenue

Customer Equipment and Shipping Revenue

Direct Cost of Telephony Services

Direct Cost of Goods Sold

Development Expenses

Cash and Cash Equivalents

Certain Risks and Concentrations

Inventory

Property and Equipment

Software Costs

Intangible Assets

Intangible assets acquired in the settlement of litigation or by direct purchase are accounted for based upon the fair value of assets received.

Patents and Patent Licenses

Patent rights acquired in the settlement of litigation or by direct purchase are accounted for based upon the fair value of assets received.

Long-Lived Assets

Debt Related Costs

Costs incurred in raising debt are deferred and amortized as interest expense using the effective interest method over the life of the debt.

Redeemable Noncontrolling Interest

Derivatives

Income Taxes

Business Combinations

Fair Value of Financial Instruments

Level 1:

Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2:

Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level 3:

Unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs.

Fair Value of Other Financial Instruments

Foreign Currency

Share-Based Compensation

Earnings per Share

The following table sets forth the computation for basic and diluted net income per share for the three and nine months ended September 30, 2013 and 2012:

Three Months Ended

Nine Months Ended

September 30,

2013

2012

2013

2012

Numerator

Numerator for basic earnings per share-net income attributable to Vonage

4,207

13,213

24,701

23,794

Numerator for diluted earnings per share-net income attributable to Vonage

4,207

13,213

24,701

23,794

Denominator

Basic weighted average common shares outstanding

209,589

225,555

212,124

225,904

Dilutive effect of stock options and restricted stock units

7,470

8,153

10,197

7,773

Diluted weighted average common shares outstanding

217,059

233,708

222,321

233,677

Basic net income per share

0.02

0.06

0.12

0.11

Diluted net income per share

0.02

0.06

0.11

0.1

For the three and nine months ended September 30, 2013 and 2012, the following were excluded from the calculation of diluted earnings per common share because of their anti-dilutive effects:

Three Months Ended

Nine Months Ended

September 30,

2013

2012

2013

2012

Restricted stock units

2,063

2,093

2,029

2,114

Stock options

26,964

32,973

24,270

33,333

29,027

35,066

26,299

35,447

Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income and other comprehensive items. Other comprehensive items include foreign currency translation adjustments.

Reclassifications

Basis_of_Presentation_and_Sign2

Basis of Presentation and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Computation for basic and diluted net (loss) income per share	'
	The following table sets forth the computation for basic and diluted net income per share for the three and nine months ended September 30, 2013 and 2012:



		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013		2012
	Numerator
	Numerator for basic earnings per share-net income attributable to Vonage	$	4,207		$	13,213		$	24,701	$	23,794

	Numerator for diluted earnings per share-net income attributable to Vonage	$	4,207		$	13,213		$	24,701	$	23,794

	Denominator
	Basic weighted average common shares outstanding	209,589			225,555			212,124		225,904

	Dilutive effect of stock options and restricted stock units	7,470			8,153			10,197		7,773

	Diluted weighted average common shares outstanding	217,059			233,708			222,321		233,677

	Basic net income per share
	Basic net income per share	$	0.02		$	0.06		$	0.12	$	0.11

	Diluted net income per share
	Diluted net income per share	$	0.02		$	0.06		$	0.11	$	0.1

Securities excluded from calculation of diluted earnings per common share because of anti-dilutive effects	'
	For the three and nine months ended September 30, 2013 and 2012, the following were excluded from the calculation of diluted earnings per common share because of their anti-dilutive effects:


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
		2013		2012			2013		2012
	Restricted stock units	2,063		2,093			2,029		2,114

	Stock options	26,964		32,973			24,270		33,333

		29,027		35,066			26,299		35,447

Supplemental_Balance_Sheet_Acc1

Supplemental Balance Sheet Account Information (Tables)	9 Months Ended
	Sep. 30, 2013
Supplemental Balance Sheet Account Information [Abstract]	'
Supplemental balance sheet account information	'
	Prepaid expenses and other current assets



		September 30,				December 31, 2012
		2013
	Nontrade receivables	$	7,914			$	6,599

	Services	7,685				6,092

	Telecommunications	601				1,503

	Insurance	1,155				389

	Marketing	1,247				639

	Other prepaids	772				265

	Prepaid expenses and other current assets	$	19,374			$	15,487


	Property and equipment, net



		September 30,				December 31, 2012
		2013
	Building (under capital lease)	$	25,709			$	25,709

	Network equipment and computer hardware	72,676				87,145

	Leasehold improvements	44,616				43,774

	Furniture	761				842

	Vehicles	109				97

		143,871				157,567

	Less: accumulated depreciation and amortization	(91,214		)		(97,034		)
	Property and equipment, net	$	52,657			$	60,533


	Software, net



		September 30,				December 31, 2012
		2013
	Purchased	$	44,497			$	89,538

	Licensed	909				909

	Internally developed	36,088				36,088

		81,494				126,535

	Less: accumulated amortization	(61,157		)		(71,428		)
	abandonment of software assets	—				(35,547		)

	Software, net	$	20,337			$	19,560


Debt related costs, net



	September 30,				December 31, 2012
	2013
Senior secured term loan	$	4,706			$	2,697

Less: accumulated amortization	(3,068		)		(1,925		)
Debt related costs, net	$	1,638			$	772


Restricted cash



	September 30,				December 31, 2012
	2013
Letter of credit-lease deposits	$	4,304			$	5,300

Letter of credit-energy curtailment program	—				258

	4,304				5,558

Cash reserves	97				98

Restricted cash	$	4,401			$	5,656


Intangible assets, net



	September 30,				December 31, 2012
	2013
Patents and patent licenses	$	18,164			$	18,164

Trademark	560				560

	18,724				18,724

Less: accumulated amortization	(13,823		)		(12,043		)
Intangible assets, net	$	4,901			$	6,681


Accrued expenses



	September 30,				December 31, 2012
	2013
Compensation and related taxes and temporary labor	$	17,832			$	16,376

Marketing	22,909				10,889

Taxes and fees	15,108				9,747

Litigation and settlements	264				89

Telecommunications	9,940				9,135

Other accruals	4,242				4,412

Customer credits	2,023				2,056

Professional fees	3,000				2,200

Accrued interest	6				5

Inventory	19				572

Credit card fees	326				306

Accrued expenses	$	75,669			$	55,787

Supplemental_Income_Statement_1

Supplemental Income Statement Account Information (Tables)	9 Months Ended
	Sep. 30, 2013
Supplemental Income Statement Account Information [Abstract]	'
Supplemental income statement information	'
	Amounts included in revenues



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	USF fees		$	17,148		$	17,705		$	52,378		$	58,128

	Disconnect fees		$	1,002		$	1,188		$	3,308		$	1,760

	Initial activation fees		$	291		$	438		$	964		$	1,685

	Customer equipment fees		$	101		$	155		$	271		$	545

	Equipment recovery fees		$	24		$	19		$	79		$	74

	Shipping and handling fees		$	248		$	409		$	938		$	972


	Amount included in direct cost of telephony services



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	USF costs		$	17,148		$	17,705		$	52,378		$	58,128


	Amount included in direct cost of goods sold



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	Shipping and handling cost		$	1,164		$	1,788		$	4,008		$	5,358


	Amount included in selling, general and administrative expense



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	Advertising costs		$	299		$	24		$	487		$	1,684

	Acquisition related costs		$	680		$	—		$	680		$	—


	Amount included in marketing



			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013			2012
	Advertising costs		$	38,997		$	30,266		$	106,963		$	100,121





Depreciation and amortization expense



		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
Network equipment and computer hardware		$	3,382		$	3,658		$	10,029		$	11,454

Software		2,826			2,281			7,975			7,213

Capital leases		549			550			1,647			1,650

Other leasehold improvements		1,064			993			3,100			2,990

Furniture		32			29			88			103

Vehicles		1			4			9			12

Patents		594			594			1,782			1,782

		8,448			8,109			24,630			25,204

Property and equipment impairments		11			1			9			13

Software impairments		—			—			—			55

Depreciation and amortization expense		$	8,459		$	8,110		$	24,639		$	25,272


Amount included in interest expense



		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
Debt related costs amortization		$	407		$	291		$	1,190		$	980


Amount included in other income (expense), net



		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2013			2012			2013			2012
Net (loss) income resulting from foreign exchange transactions		$	(15	)	$	28		$	(77	)	$	5

LongTerm_Debt_and_Revolving_Cr1

Long-Term Debt and Revolving Credit Facility (Tables)	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Schedule of long-term debt	'
	A schedule of long-term debt at September 30, 2013 and December 31, 2012 is as follows:


		September 30,		December 31,
		2013		2012
	3.125-3.625% Credit Facility - due 2016	$	29,167	$	—

	3.25-3.75% Credit Facility - due 2014	—		14,167

Future payments under long-term debt obligations	'
	At September 30, 2013, future payments under long-term debt obligations over each of the next five years and thereafter were as follows:



		Credit Facility
	2013	$	5,833

	2014	23,333

	2015	23,334

	Minimum future payments of principal	52,500

	Less: current portion	23,333

	Long-term portion	$	29,167

Common_Stock_Tables

Common Stock (Tables)	9 Months Ended
	Sep. 30, 2013
$50,000 repurchase program	'
Common stock repurchases:	'
Common stock repurchases	'
	We repurchased the following shares of common stock with cash resources under the $50,000 repurchase program during the three and nine months ended September 30, 2013:


		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2013		2013
	Shares of common stock repurchased	—		2,189

	Value of common stock repurchased	$	—	$	5,374

$100,000 repurchase program	'
Common stock repurchases:	'
Common stock repurchases	'
	We repurchased the following shares of common stock with cash resources under the $100,000 repurchase program during the three and nine months ended September 30, 2013*:


		Three Months Ended		Nine Months Ended
		September 30,		September 30,
		2013		2013
	Shares of common stock repurchased	4,690		13,485

	Value of common stock repurchased	$	14,680	$	39,138

	* including 345 shares, or $1,092, of common stock repurchases settled in October 2013; excluding commission of $7.

Basis_of_Presentation_and_Sign3

Basis of Presentation and Significant Accounting Policies (Details)	9 Months Ended	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
	billing_cycle	United States
		Subscriber lines
		Geographic concentration
Concentration risk:	'	'
Percentage of subscriber lines represented by the United States	'	93.00%
Maximum original maturity term of investments to be considered cash and cash equivalents	'3 months	'
Duration of timing difference between customer credit card billed and subsequent settlement of transaction with credit card processors	'3 days	'
Number of unsuccessful billing cycles before account termination	3	'

Basis_of_Presentation_and_Sign4

Basis of Presentation and Significant Accounting Policies - Property and Equipment (Details)	9 Months Ended
	Sep. 30, 2013
Minimum \| Network equipment	'
Property and Equipment:	'
Useful life of property and equipment	'3 years
Minimum \| Computer hardware	'
Property and Equipment:	'
Useful life of property and equipment	'3 years
Minimum \| Furniture	'
Property and Equipment:	'
Useful life of property and equipment	'3 years
Maximum \| Network equipment	'
Property and Equipment:	'
Useful life of property and equipment	'5 years
Maximum \| Computer hardware	'
Property and Equipment:	'
Useful life of property and equipment	'5 years
Maximum \| Furniture	'
Property and Equipment:	'
Useful life of property and equipment	'5 years

Basis_of_Presentation_and_Sign5

Basis of Presentation and Significant Accounting Policies - Software Costs (Details) (USD $)	3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Jun. 30, 2012	Sep. 30, 2013	Sep. 30, 2013
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Software	Minimum	Maximum
Software Costs:	'	'	'	'	'	'	'
Useful life of software	'	'	'	'	'	'2 years	'5 years
Loss from abandonment of software assets	$0	$0	$0	$25,262	$25,262	'	'

Basis_of_Presentation_and_Sign6

Basis of Presentation and Significant Accounting Policies - Valuation and Qualifying Accounts - Income Taxes (Details) (USD $)	9 Months Ended		3 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2011
	Sep. 30, 2013	Sep. 30, 2012	Valuation allowance, operating loss carryforwards
Valuation and qualifying accounts disclosure:	'	'	'
Adjustment to valuation allowance	'	'	$325,601
Non-cash deferred tax adjustment for stock compensation previously considered nondeductible	'	$4,077	'
Estimated annual effective tax rate	41.00%	'	'

Basis_of_Presentation_and_Sign7

Basis of Presentation and Significant Accounting Policies - Earnings Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'	'	'	'
Numerator for earnings per share-net income attributable to Vonage	$4,207	$13,213	$24,701	$23,794
Basic weighted average common shares outstanding (in shares)	209,589	225,555	212,124	225,904
Dilutive effect of stock options and restricted stock units (in shares)	7,470	8,153	10,197	7,773
Diluted weighted average common shares outstanding (in shares)	217,059	233,708	222,321	233,677
Basic net income per share (USD per share)	$0.02	$0.06	$0.12	$0.11
Diluted net income per share (USD per share)	$0.02	$0.06	$0.11	$0.10

Basis_of_Presentation_and_Sign8

Basis of Presentation and Significant Accounting Policies - Earnings Per Share, Antidilutive Securities (Details)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings per share, antidilutive securities:	'	'	'	'
Antidilutive securities excluded from earnings per common share	29,027	35,066	26,299	35,447
Restricted stock units	'	'	'	'
Earnings per share, antidilutive securities:	'	'	'	'
Antidilutive securities excluded from earnings per common share	2,063	2,093	2,029	2,114
Stock options	'	'	'	'
Earnings per share, antidilutive securities:	'	'	'	'
Antidilutive securities excluded from earnings per common share	26,964	32,973	24,270	33,333

Supplemental_Balance_Sheet_Acc2

Supplemental Balance Sheet Account Information (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Prepaid expenses and other current assets:	'	'
Nontrade receivables	$7,914	$6,599
Services	7,685	6,092
Telecommunications	601	1,503
Insurance	1,155	389
Marketing	1,247	639
Other prepaids	772	265
Prepaid expenses and other current assets	19,374	15,487
Debt related costs, net:	'	'
Senior secured term loan	4,706	2,697
Less: accumulated amortization	-3,068	-1,925
Debt related costs, net	1,638	772
Accrued expenses:	'	'
Compensation and related taxes and temporary labor	17,832	16,376
Marketing	22,909	10,889
Taxes and fees	15,108	9,747
Litigation and settlements	264	89
Telecommunications	9,940	9,135
Other accruals	4,242	4,412
Customer credits	2,023	2,056
Professional fees	3,000	2,200
Accrued interest	6	5
Inventory	19	572
Credit card fees	326	306
Accrued expenses	$75,669	$55,787

Supplemental_Balance_Sheet_Acc3

Supplemental Balance Sheet Account Information - Property and Equipment (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Property and Equipment:	'	'
Property equipment, gross	$143,871	$157,567
Less: accumulated depreciation and amortization	-91,214	-97,034
Property and equipment, net	52,657	60,533
Building (under capital lease)	'	'
Property and Equipment:	'	'
Property equipment, gross	25,709	25,709
Network equipment and computer hardware	'	'
Property and Equipment:	'	'
Property equipment, gross	72,676	87,145
Leasehold improvements	'	'
Property and Equipment:	'	'
Property equipment, gross	44,616	43,774
Furniture	'	'
Property and Equipment:	'	'
Property equipment, gross	761	842
Vehicles	'	'
Property and Equipment:	'	'
Property equipment, gross	$109	$97

Supplemental_Balance_Sheet_Acc4

Supplemental Balance Sheet Account Information - Software (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Software:	'	'
Software, gross	$81,494	$126,535
Less: accumulated amortization	-61,157	-71,428
Less: abandonment of software assets	0	-35,547
Software, net	20,337	19,560
Purchased	'	'
Software:	'	'
Software, gross	44,497	89,538
Licensed	'	'
Software:	'	'
Software, gross	909	909
Internally developed	'	'
Software:	'	'
Software, gross	$36,088	$36,088

Supplemental_Balance_Sheet_Acc5

Supplemental Balance Sheet Account Information - Restricted Cash (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Restricted cash:	'	'
Restricted cash	$4,401	$5,656
Letter of credit	'	'
Restricted cash:	'	'
Restricted cash	4,304	5,558
Letter of credit-lease deposits	'	'
Restricted cash:	'	'
Restricted cash	4,304	5,300
Letter of credit-energy curtailment program	'	'
Restricted cash:	'	'
Restricted cash	0	258
Cash reserves	'	'
Restricted cash:	'	'
Restricted cash	$97	$98

Supplemental_Balance_Sheet_Acc6

Supplemental Balance Sheet Account Information - Intangible Assets (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Finite-lived intangible assets:	'	'
Intangible assets, gross	$18,724	$18,724
Less: accumulated amortization	-13,823	-12,043
Intangible assets, net	4,901	6,681
Patents and patent licenses	'	'
Finite-lived intangible assets:	'	'
Intangible assets, gross	18,164	18,164
Trademark	'	'
Finite-lived intangible assets:	'	'
Intangible assets, gross	$560	$560

Supplemental_Income_Statement_2

Supplemental Income Statement Account Information (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
USF fees	$17,148	$17,705	$52,378	$58,128
Disconnect fees	1,002	1,188	3,308	1,760
Initial activation fees	291	438	964	1,685
Customer equipment fees	101	155	271	545
Equipment recovery fees	24	19	79	74
Shipping and handling fees	248	409	938	972
Depreciation:	'	'	'	'
Depreciation and amortization expense	8,459	8,110	24,639	25,272
Debt related costs amortization	'	'	1,190	980
Direct cost of telephony services	'	'	'	'
Revenues:	'	'	'	'
USF costs	17,148	17,705	52,378	58,128
Direct cost of goods sold	'	'	'	'
Revenues:	'	'	'	'
Shipping and handling cost	1,164	1,788	4,008	5,358
Selling, general and administrative expense	'	'	'	'
Revenues:	'	'	'	'
Advertising costs	299	24	487	1,684
Acquisition related costs	680	0	680	0
Marketing	'	'	'	'
Revenues:	'	'	'	'
Advertising costs	38,997	30,266	106,963	100,121
Depreciation and amortization	'	'	'	'
Depreciation:	'	'	'	'
Depreciation and amortization expense, excluding impairments	8,448	8,109	24,630	25,204
Depreciation and amortization expense	8,459	8,110	24,639	25,272
Depreciation and amortization \| Patents	'	'	'	'
Depreciation:	'	'	'	'
Depreciation and amortization expense, excluding impairments	594	594	1,782	1,782
Depreciation and amortization \| Property and Equipment	'	'	'	'
Depreciation:	'	'	'	'
Property and equipment impairments	11	1	9	13
Depreciation and amortization \| Network equipment and computer hardware	'	'	'	'
Depreciation:	'	'	'	'
Depreciation and amortization expense, excluding impairments	3,382	3,658	10,029	11,454
Depreciation and amortization \| Software	'	'	'	'
Depreciation:	'	'	'	'
Depreciation and amortization expense, excluding impairments	2,826	2,281	7,975	7,213
Software impairments	0	0	0	55
Depreciation and amortization \| Capital leases	'	'	'	'
Depreciation:	'	'	'	'
Depreciation and amortization expense, excluding impairments	549	550	1,647	1,650
Depreciation and amortization \| Other leasehold improvements	'	'	'	'
Depreciation:	'	'	'	'
Depreciation and amortization expense, excluding impairments	1,064	993	3,100	2,990
Depreciation and amortization \| Furniture	'	'	'	'
Depreciation:	'	'	'	'
Depreciation and amortization expense, excluding impairments	32	29	88	103
Depreciation and amortization \| Vehicles	'	'	'	'
Depreciation:	'	'	'	'
Depreciation and amortization expense, excluding impairments	1	4	9	12
Interest expense	'	'	'	'
Depreciation:	'	'	'	'
Debt related costs amortization	407	291	1,190	980
Other income (expense), net	'	'	'	'
Depreciation:	'	'	'	'
Net (loss) income resulting from foreign exchange transactions	($15)	$28	($77)	$5

LongTerm_Debt_and_Revolving_Cr2

Long-Term Debt and Revolving Credit Facility (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Future payments under long-term debt obligations:	'	'
2013	$5,833	'
2014	23,333	'
2015	23,334	'
Minimum future payments of principal	52,500	'
Less: current portion	23,333	28,333
Long-term portion	29,167	14,167
Secured debt \| 2013 Credit Facility	'	'
Schedule of long term debt:	'	'
Amount outstanding	29,167	0
Stated interest rate, minimum	3.13%	'
Stated interest rate, maximum	3.63%	'
Secured debt \| 2011 Credit Facility	'	'
Schedule of long term debt:	'	'
Amount outstanding	$0	$14,167
Stated interest rate, minimum	3.25%	'
Stated interest rate, maximum	3.75%	'

LongTerm_Debt_and_Revolving_Cr3

Long-Term Debt and Revolving Credit Facility - Financing (Details) (Secured debt, USD $)	Jul. 29, 2011	Feb. 11, 2013	Jul. 29, 2011	Feb. 11, 2013
	Senior secured term loan	Senior secured term loan	Revolving credit facility	Revolving credit facility
	2011 Credit Facility	2013 Credit Facility	2011 Credit Facility	2013 Credit Facility
Long-term debt and revolving credit facility:	'	'	'	'
Line of credit facility, maximum borrowing capacity	$85,000,000	$70,000,000	$35,000,000	$75,000,000

LongTerm_Debt_and_Revolving_Cr4

Long-Term Debt and Revolving Credit Facility - Use of Proceeds (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Jul. 29, 2011	Feb. 11, 2013	Feb. 11, 2013	Jul. 29, 2011	Feb. 11, 2013
			Secured debt	Secured debt	Senior secured term loan	Senior secured term loan	Senior secured term loan
			2011 Credit Facility	2013 Credit Facility	Secured debt	Secured debt	Secured debt
					2011 Credit Facility	2010 Credit Facility	2013 Credit Facility
Long-term debt and revolving credit facility:	'	'	'	'	'	'	'
Proceeds from the issuance of debt	'	'	$100,000,000	$27,500,000	'	'	'
Cash used in conjunction with debt to extinguish prior debt arrangements	'	'	31,000,000	'	'	'	'
Prepayment fee	'	'	'	'	'	1,000,000	'
Senior secured term loan	$4,706,000	$2,697,000	'	'	$670,000	$2,697,000	$2,009,000

LongTerm_Debt_and_Revolving_Cr5

Long-Term Debt and Revolving Credit Facility - Facility Terms (Details) (Secured debt, 2013 Credit Facility, USD $)

0 Months Ended

Feb. 11, 2013

Jul. 26, 2013

Feb. 11, 2013

Maximum

Minimum

LIBOR, Consolidated Leverage Ratio less than .75 to 1.00

LIBOR, Consolidated Leverage Ratio greater than or equal to .75 to 1.00 and less than 1.50 to 1.00

LIBOR, consolidated leverage ratio greater than or equal to 1.50 to 1.00

LIBOR applicable to one month interest periods, consolidated levarage ratio greater than or equal to 1.50 to 1.00

Base rate

Federal Funds effective rate

Prime rate

LIBOR applicable to one month interest periods

LIBOR applicable to one month interest periods, conolidated leverage ratio less than .75 to 1.00

LIBOR applicable to one month interest periods, consolidated leverage ratio greater than or equal to .75 to 1.00 and less than 1.50 to 1.00

Senior secured term loan

Revolving credit facility

Loans payable

Maximum

Minimum

JP Morgan Chase Bank, N.A.

Maximum

Minimum

London Interbank Offered Rate (LIBOR)

Long-term debt and revolving credit facility:

Periodic payment amount

$5,833,000

Commitment fee percentage

0.45%

Description of variable rate basis

'base rate

'federal funds effective rate

'prime rate

'LIBOR rate applicable to one month interest periods

'LIBOR

Basis spread on variable rate

3.13%

3.38%

3.63%

2.63%

0.50%

2.13%

2.28%

Consolidated leverage ratio

75.00%

150.00%

75.00%

150.00%

75.00%

150.00%

75.00%

Duration of interest period used to determine interest rate

'3 months

Percentage in addition to basis spread on variable rate

1.00%

Prepayment amount percentage of net cash proceeds from disposition of assets

100.00%

Prepayment amount percentage of net cash proceeds received with other non-ordinary course transaction

100.00%

Additional Borrowing Capacity Allowed

60,000,000

Consolidated leverage ratio permitted by financial covenants

200.00%

Consolidated fixed coverage charge ratio permitted by financial covenants

175.00%

Restricted payments adjusted amount for consolidated fixed coverage charge ratio requirement

80,000,000

50,000,000

Cash requirement for financial covenants

25,000,000

Annual excess cash flow in addition to unused capital expenditures limit carried forward permitted by financial covenants in event of specified corporate actions

35,000,000

Annual capital expenditures permitted by financial covenants

55,000,000

Annual excess cash flow in addition to unused capital expenditures limit carried forward permitted by financial covenants

$8,000,000

Additional interest rate applied in the event of default

2.00%

Common_Stock_Details

Common Stock (Details) (USD $)	0 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Feb. 19, 2013	Jun. 07, 2012	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'	'	'
Ownership percentage limit for 5-percentage points shareholders under the NOL Rights Agreement	'	50.00%	'
Rolling period determining ownership percentage limit under NOL Rights Agreement	'	'3 years	'
Dividend declared, preferred share purchase right, conversion ratio	'	1	'
Maximum ownership percentage limit under the NOL Rights Agreement in which significant dilution would be imposed	'	4.90%	'
Stock option cancellation (in shares)	4,500	'	'
Stock option cancellation	$5,463	'	$5,463

Common_Stock_Common_Stock_Repu

Common Stock - Common Stock Repurchases (Details) (USD $)	9 Months Ended		0 Months Ended		3 Months Ended	7 Months Ended	9 Months Ended	3 Months Ended	0 Months Ended	3 Months Ended	9 Months Ended
Share data in Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Feb. 12, 2013	Jul. 25, 2012	Sep. 30, 2013	Feb. 12, 2013	Sep. 30, 2013	Sep. 30, 2013	Feb. 07, 2013	Sep. 30, 2013	Sep. 30, 2013
			$50,000 repurchase program	$50,000 repurchase program	$50,000 repurchase program	$50,000 repurchase program	$50,000 repurchase program	$100,000 repurchase program	$100,000 repurchase program	$100,000 repurchase program	$100,000 repurchase program
			Common Stock	Common Stock	Common Stock	Common Stock	Common Stock		Common Stock	Common Stock	Common Stock
Common stock repurchases:	'	'	'	'	'	'	'	'	'	'	'
Authorized amount of stock repurchase	'	'	'	$50,000,000	'	$50,000	'	'	$100,000,000	'	'
Shares of common stock repurchased (in shares)	'	'	'	'	0	'	2,189	'	'	4,690	13,485
Value of common stock repurchased	44,825,000	'	'	'	0	'	5,374,000	'	'	14,680,000	39,138,000
Remaining authorized amount of stock repurchase program	'	'	16,682,000	'	'	'	'	'	'	60,862,000	'
Stock repurchased during period, unpaid (in shares)	'	'	'	'	'	'	'	'	'	345	'
Stock repurchased during period, unpaid	1,099,000	706,000	'	'	'	'	'	'	'	1,092,000	'
Payments for repurchase of common stock commission costs	'	'	'	'	'	'	'	$7,000	'	'	'

Commitments_and_Contingencies_1

Commitments and Contingencies (Details) (USD $)	0 Months Ended	5 Months Ended
In Thousands, unless otherwise specified	Feb. 11, 2013	Mar. 05, 2013	Sep. 30, 2013	Dec. 31, 2012
	Defendant	Mar. 05, 2013	Sep. 30, 2013	Dec. 31, 2012
Commitments and contingencies:	'	'	'	'
Number of defendants	27	'	'	'
Percent increase in cost To terminate international calls to Pakistan	'	500.00%	'	'
Restricted cash	'	'	$4,401	$5,656
Reserve for potential tax liability pending new requirements from state or municipal agencies	'	'	1,595	'
Estimated maximum potential exposure for retroactive tax assessments	'	'	4,500	'
Letter of credit	'	'	'	'
Commitments and contingencies:	'	'	'	'
Restricted cash	'	'	4,304	5,558
518210 Data Processing, Hosting, and Related Services	'	'	'	'
Commitments and contingencies:	'	'	'	'
Vendor commitments due in 2013	'	'	300	'
Vendor commitments due in 2014	'	'	800	'
Telecom Related Services	'	'	'	'
Commitments and contingencies:	'	'	'	'
Vendor commitments due in 2013	'	'	600	'
Vendor commitments due in 2014	'	'	2,600	'
Vendor commitments due in 2015	'	'	2,300	'
Vendor commitments due in 2016	'	'	1,800	'
Contract obligation minimum payment	'	'	$2,300	'

Redeemable_Noncontrolling_Inte1

Redeemable Noncontrolling Interest (Details)	3 Months Ended
Redeemable Noncontrolling Interest (Details)	Sep. 30, 2013
Business Acquisition [Line Items]	'
Redeemable noncontrolling interest percentage ownership	30.00%
Minimum	'
Business Acquisition [Line Items]	'
Call right exercise agreement, percent adjustment to appraised value of redeemable non-controlling interest	50.00%
Put right exercise agreement, percent adjustment to appraised value of redeemable non-controlling interest	50.00%
Maximum	'
Business Acquisition [Line Items]	'
Call right exercise agreement, percent adjustment to appraised value of redeemable non-controlling interest	150.00%
Put right exercise agreement, percent adjustment to appraised value of redeemable non-controlling interest	120.00%

Subsequent_Events_Details

Subsequent Events (Details) (Subsequent Event [Member], Vocalocity [Member], USD $)	0 Months Ended
In Thousands, unless otherwise specified	Oct. 09, 2013
Subsequent Event [Member] \| Vocalocity [Member]	'
Business Acquisition [Line Items]	'
Acquisition Agreement, Consideration Transferred	$130,000
Acquisition Agreement, Common Shares Issued	8,019
Acquisition Agreement, Value of Common Shares	25,000
Acquisition Agreement, Cash Consideration	105,000
Acquisition Agreement, Financing, Cash on Hand	30,000
Acquisition Agreement, Financing, Credit Facility	$75,000