Motley Fool: Vonage will "eventually succumb"

Motley Fool: Vonage will "eventually succumb"

Summary: Dave Mock of the financial news and advice website Motley Fool seems to be of two minds about Vonage.Mock looks forward to this Thursday's quarterly earnings statement as one which will show that Vonage's marketing budget cuts and other cost-saving measures have saved the company losses, and will make the red ink smaller.

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TOPICS: Networking
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vonage158.jpg Dave Mock of the financial news and advice website Motley Fool seems to be of two minds about Vonage.

Mock looks forward to this Thursday's quarterly earnings statement as one which will show that Vonage's marketing budget cuts and other cost-saving measures have saved the company losses, and will make the red ink smaller.

On the other hand, Mock is not upbeat about Vonage's mid-to-long-term chances:

Another bell tolled for VoIP providers a few weeks back, when Internet telephony provider Sunrocket quickly shuttered its doors on 200,000 subscribers. Fearing Vonage may eventually do the same, investors have continued to bid shares down. With more than $400 million in cash and equivalents on the books, however, Vonage has lots of time to contemplate its fate.

Most likely, the business will eventually succumb to competition and subscribers will be bought out by more established firms such as cable providers Comcast or Time Warner Cable. Without some very positive developments this quarter, the company will continue a march toward an eventual end.

So to put it arguably more morbidly, Mock seems to be saying Vonage is in a slow death spiral.

Topic: Networking

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5 comments
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  • Really long cable

    I'm sitting London using my Vonage line on a daily basis. Will Comcast or Time Warner run a really long cable to reach the UK customers? Anyone (I include Vonage in this) have any idea how many customers Vonage has outside of the US?

    There are several other VoIP vendors in the UK/Europe but none have the feature set of Vonage. Don't believe the US pundits who think Vonage sells on price. That's put about by the dinosaurs whose feature set is even more dismal than the low end VoIP vendors.

    Beck
    MrBeck
    • I'm with you...

      [i]There are several other VoIP vendors in the UK/Europe but none have the feature set of Vonage.[/i]

      Same for the US. Some have decent features, but horrific service, shoddy customer service, etc. To say that Packet-8 is crap would be a compliment. I spent 8 weeks waiting for them to port my number, only to tell them I never requested it, yet their own "LNP Status" page said "pending". Had to file a complaint with the Better Business Bureau. I've said it before. I'll tie two cans together with string before I'd attempt to use them again.
      MGP2
      • Woops - typo

        "only to tell them I never requested it" = only for them to tell me I never requested it.
        MGP2
  • *yawn* - wake me when something new gets mentioned

    Note: this rant is as much directed to The Motley Fool as it is to Russell Shaw ...

    C'mon - can't you find anything to post about Vonage that hasn't been getting said for a year or more?

    Yes, Vonage will eventually go under - likely within the next one-two years. This has been talked to death on stock and VoIP forums for at least a year now, with stock analysts commenting on it for at least that long as well. A company can't run at a loss indefinitely, eventually the tank runs dry and the doors need to be shut. The fact that Sunrocket has gone under doesn't change anything, other than possibly openning the eyes of a ZDnet blogger and a Motley Fool analyst/advice columnist.

    The last time Shaw tried doing stock analysis himself, he showed that he was out of his element and was much better off discussing technology. While this entry is a better written analysis (although, granted - the bulk of it was written by someone else), it's still severely dated content.
    ac2_z
  • Clear up the way for better guys

    Way to go Vonage! I have been with them for 1 year in 2005-2006. After my contract ended, I called them and asked for a better monthly rate. At the time they were giving $200 gift card to anybody who signed up with them via Microcenter. I complained about that and told them that they need to give me something too. They told me to go somewhere else if I'm not happy. And so I went first to Sunrocket and now to <a href="http://www.dpbolvw.net/k8101mw3s-2HJKNQIMKHJIMJIQOP">ViaTalk</a>, who sells two lines for $199 a year and provides up to three months free for ex-Sunrocket customers. I've also heard a lot of good things about <a href="http://www.tkqlhce.com/8h117oz6v25KMNQTLPNKMLPQUMPR" target="_top">VOIP.com</a>, <a href="http://click.linksynergy.com/fs-bin/click?id=Wv7rUblo*Jc&offerid=116116.10000019&type=3&subid=0">Lingo</a> , <a href="http://www.kqzyfj.com/4381sjrfnq467AD5974659BBA87">JoiPhone</a> ,<a href="http://click.linksynergy.com/fs-bin/click?id=Wv7rUblo*Jc&amp;offerid=122417.10000010&amp;type=1&amp;subid=0">Packet8</a>
    cjackson4