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Vonage Let’s take a deeper dive into Verizon and their view of Vonage. In a 2004 MCI Annual
Let’s take a deeper dive into Verizon and their view of Vonage. In a 2004 MCI Annual Report found on the Verizon website at http://investor.verizon.com/financial/quarterly/pdf/04MCI_AR.pdf you find Vonage clearly listed as the only Voip threat. In the words of MCI, The article then lists those competitors and for Voip they say, This article discusses the proposed merger of Verizon and MCI and the possible roadblocks in such a merger. In 2004 they already recognized Vonage as a threat. Where was the lawsuit?
Looking deeper into Verizon’s website we find more mentions of a sole Voip competitor. The link http://investor.verizon.com/profile/industry/industry_002.aspx seems to discuss a case study of the United States communications markets and the threats to Verizon. Verizon clearly recognizes a large potential for income as seen here: They tout their strength by stating,
In further discussion they recognize the significance of Voip, Notice no mention of broadband.
But then let’s look at what Verizon put in their filing against Vonage: In the filing, Verizon noted that Vonage has gained 1.1 million new customers in the last 15 months, It is quite evident that Verizon has singled out Vonage as a sole threat. In 2006 Verizon claimed $23.3 billion in revenue with $8.3 billion from wireline services and $9.9 billion from wireless.
So now I have thrown out a bunch of numbers, factual according to Verizon’s own website. But looking at those number it is clear that Verizon holds less than 10% of the telecommunications market. While Vonage may have gained less than 1% of Verizon’s total customer base in one year, there is no guarantee that all of these customers came from Verizon. In fact it is clearly possible that less than 10% of the 1% came from Verizon since Verizon only holds 10% of the entire market. If it were true that the entire Vonage customer base grew from purely Verizon customers, then one should assume something is seriously wrong at Verizon.
Sounds like there is no basis for Verizon’s paranoia of Vonage. It could be true. Is Verizon really worried about a patent? For that analysis let’s look at another article on Verizon’s website and an article discussing the history of Verizon http://investor.verizon.com/profile/history/pdf/verizonhistory.pdf . Here we learn about GTE, the largest independent telephone company. From the article we learn, Sound familiar? Albeit legal at the time, Verizon is stating their entire business started by bootstrapping off someone else’s patent. Lucky for GTE that some judge didn’t come around expanding Alexander Graham Bell’s patent. It is interesting to read the entire article as it discusses how GTE gained its technological advantage through acquisitions of other companies. Today Verizon is using their own labs to focus on fiber. You can see their plan here: http://investor.verizon.com/profile/pdf/wireline_tech_overview.pdf.
Now, finally we must look at where Verizon speaks with forked tongue. Check out this article: http://investor.verizon.com/shareowner/pdf/vantage04.pdf. Here we find Verizon claiming government should stay out of the competition.
What is Verizon worried about? If their entire future is based on fiber, which they consider superior, then Vonage should not be a problem. Let’s hope we aren’t looking at an attempt to stifle a very small competitor. Or is it that small?
Read The Full Thread: Verizon vs Vonage Lawsuit
• In connection with current patent infringement suit, Verizon is asking the jury
• I'm suprised it took this long for this thread to appear. :lol:
(A word of advice,
• Verizon is facing a very serious problem (in their minds) because they are losing
• I find it interesting that just about the same time the lawsuit heated up, Verizon
• Verizon has won the suit per CNBC.
• The ticker started going INSANE at about 3:11pm EST. Verdict was not for the full
• So thanks to the fine folks at Verizon we may get 5.5% tacked onto our Vonage bill.
• Interesting that Verizon supposedly owns some patents, yet their own VoIP offering
• I just wonder if this will embolden Verizon to start shaking down the smaller VoIP
• I got rid of Verizion land-line phone service because they were costing us over
galion posted "Let’s take a deeper dive into Verizon and their view of Vonage. In a 2004 MCI Annual" on 03/16/2007 |
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