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Vonage Oh no, there are threats alright, it's just that Vonage isn't one of them because





Oh no, there are threats alright, it's just that Vonage isn't one of them because it has no competing infrastructure . It cannot compete. It relies on voice generated revenues to make money. As soon as those revenues are not available, it has no income.

This is one aspect of pure voice provision that so many people fail to grasp as they're not thinking beyond the technology. Beyond to the infrastructure on which it relies. I regularly have to hammer this point home to clients. They don't get it at first either. Someone mentions "VoIP" and dollar signs light up, but you need to think about how that product gets delivered to your customer and understand how that delivery mechanism is currently changing.

You'll see the effect once the inevitable price cutting and triple play bundling starts to kick off. When that happens Vonage has nowhere to turn, as it can't offer anything else. Critically, it has no network from which to offer services.

Question # 1 : if your broadband provider said to you that it could offer you the same service that Vonage does, but it'll give it to you for free, as you're a good customer for broadband, what would you say? Would you keep Vonage, even if it's costing you an extra $20/month (or whatever it is in the US)?

Question # 2 (and I put this to you as I have no doubt that Vonage will try to compete) : What would Vonage have to offer you by way of value add to pursuade you that Vonage is worth paying for, rather than just taking the free service from your broadband ISP? And what is it that Vonage could offer you here, that your broadband ISP couldn't?

Question # 3 : What can Vonage offer you that your broadband provider can't ?

Ask those three questions and you'll begin to understand the predicament of the pure voice provider company like Vonage.

Every broadband provider knows that Voip will be a big key into getting market share in broadband and that the traditional telco per minute charging model is dead in the water. And behind those broadband providers, more often than not, you'll find a sleeping giant. The incumbent telco.

Vonage is just a cut-price telco, and it's a cut price telco that's about to get undercut. In a big way.

Anyway, you can see all of this unfolding right now if you look around. I can't really explain it to you any better than this. You either get what's happening in the industry right now, or not.

Fundamentally, Voip is becoming part of the feature set of networking, much in the same way that e-mail did before it.



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I own stock in Vonage and think you are a great company. The street is looking for
Vonage is no threat to the phone companies. Any of the big telco's could squish
[quote="trillian"] Don't be naive. Time Warner,Comcast,and Optimum Online
And you're calling me naive? ;) http://www.vii.org/afteluso.htm
If the shoe fits? Vonage and the VOIP technology is the biggest threat that
Vonage's only threat is to itself. There is only one outcome, and that is reduced
If you think its a great industry, then buy Verizon or Bellsouth. No threat
When and if the cable companies start offering VOIP for free then I'll agree
Or so close to free that you wouldn't notice, which is what happens effectively

trillian posted "Oh no, there are threats alright, it's just that Vonage isn't one of them because" on 07/18/2006

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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.

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HIGH SPEED INTERNET REQUIRED. †VALID 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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