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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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