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Vonage This just isn't true. There are plenty of phone providers who survive on niche





This just isn't true. There are plenty of phone providers who survive on niche markets, offering features or service that larger providers don't.

One of my main arguments is that Vonage is not trying to be a niche player and that it has left the door open to other companies that want to offer specific services without leveraging economies of scale.

Vonage has positioned itself to compete directly against the incumbent companies. Price pressures will not come from those players for several years because of their recent investments in infrastructure. The cable companies are already attacking the telephone companies on price in an attempt to slow move towards fiber delivered television, but they have their own recent upgrades to pay off and have probably already hit the floor on their price points.

Verizon will only let VoiceWing drop prices enough to stay competitive. They can't afford to have it siphoning off more expensive PSTN customers at this point.

Vonage has already moved into oversees markets. This gives them the advantage of being able to carry calls into these markets themselves. This is not an area the incumbent companies will be competing in in the near term and gives Vonage a significant head start.



When do you predict that will happen? Verizon for example already has binding commitments in my area to continue building out the fiber network for the next five to seven years. When do you think they can expect to pay that off? Although there is not much margin in basic phone service, the margin in features (call waiting, etc.) is enormous. That is the cash cow from which Verizon hopes to pay for its fiber upgrades. For now price pressures in broadband and television make those products commodities with very little profit. By the time the telephone and cable companies stop fighting each other, Vonage will be way out ahead in terms of international growth and nomadic features. Thus it will be able to hold its own against attacks from currently established players.

Vonage also needs to focus on acquisition and development of IP. Recent events have shown that Vonage needs to have something it can use to prevent others starting new patent actions and entering the market. That something is intellectual property.



Read The Full Thread:

Suggestion to Vonage


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

scerruti posted "This just isn't true. There are plenty of phone providers who survive on niche" on 07/21/2006

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†AK and HI residents pay $29.95 shipping. ††Limited 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. †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.

** Certain call types excluded.

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