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Vonage Letís take a deeper dive into Verizon and their view of Vonage. In a 2004 MCI Annual



Letís 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 Verizonís 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 letís 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 Verizonís 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 Verizonís 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 Verizonís paranoia of Vonage. It could be true. Is Verizon really worried about a patent? For that analysis letís look at another article on Verizonís 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 elseís patent. Lucky for GTE that some judge didnít come around expanding Alexander Graham Bellís 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. Letís hope we arenít 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 "Letís take a deeper dive into Verizon and their view of Vonage. In a 2004 MCI Annual" on 03/16/2007

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ÜAK and HI residents pay $29.95 shipping. ÜÜLimited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. ÜVALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

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