glendokid

Vonage: Headed For the Auction Block?

I've been a huge fan and customer of Vonage from the beginning, but I think that they are doomed. Their model only made good sense for people with a cable modem - if you're using DSL, you already have a phone and most phone companies won't sell you DSL without a phone. But now all of the cable companies are offering VOIP phones. The (not too distant) future is that both phone companies and cable companies will have high speed digital connections to homes and will offer digital TV, phone, and internet service. Where's Vonage in this picture?

The only hope would be a skype like model where one could use their mobile computers as phones everywhere - but Vonage made that their mobile service too pricey.

In short, VOIP for a person with a home or mobile high speed internet connection is just software and some infrastructure at the back end. So there's no barrier to entry for big players like the new Verizon and the old cable companies. Moreover, these players do not have the high acquisition costs of a Vonage - they are selling to existing customers through existing channels (e.g. in the monthly billing).

cheers,

tas