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Voice over Internet Protocol provider Vonage will have a million subscribers by the end of the year.

Chief executive Jeffrey Citron told Reuters the firm would easily exceed a million subscribers by year end. He said Vonage gained 249,000 subscribers in the first quarter, up from 114,000 in the fourth quarter. He said price and extra features continue to attract more customers.

Citron refused to comment on plans to float the VoIP company but said it had sufficient capital to expand - Vonage recently raised $200m.

Vonage currently has 700,000 telephone lines in use and is gaining an extra 15,000 lines per week.

In other news Vonage is extending its service in Canada from 14 cities to 50 extra territories.®

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