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Tomekaxali Posted:
Czy wiesz, co to
jest druk
banerowy? Jest to
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Rollupy reklamowe na czas u nas
On Apr 23, 2017 at 09:03:53

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Vonage UK
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Vonage Canada
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diazou Posted:
Hello, It's
compatible with
Android your phone
? Thanks!

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IP PBX for small business
On Mar 28, 2017 at 07:42:33

jeddaisg Posted:
Hi all We have
a Vonage VOIP
system for our
office. Lately,
our call quality

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Ethernet Cable; Wiring schematic? 568-B?
On Feb 23, 2017 at 12:33:52

beast321 Posted:
I don't know if
you heard, that
many more
Dreamcast games
are opened up

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Fax - Tivo - Alarms
Using phone as a dial up modem for Dreamcast Gaming
On Feb 15, 2017 at 21:16:51

Av8rix Posted:
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New adapter and router -- MAC change
On Jan 10, 2017 at 19:07:21

tplink Posted:
Im trying to add
my HT802 vonage
adapter to my home
network. I
currently have

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Hard Wiring - Installation
Vonage behind switch
On Dec 05, 2016 at 06:35:11

DWSupport Posted:
After recent
Vonage update that
took place on the
4th and 5th of
Nov. E-mails with

In The Forum:
Voicemail Not Forwarding to Outlook Accounts
On Nov 10, 2016 at 12:23:26

peterlee Posted:
Had a call from a
Hospital in Ajax,
Ontario to my home
Scarborough, Onta

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Vonage Canada
Hospital Incoming call unable to connect
On Nov 08, 2016 at 11:59:50

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Vonage In The News
Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2013 Results

Carolyn Katz Elected to Board of Directors of Vonage Holdings Corp.


Vonage Customer Reviews
Vonage vs. Time Warner Cable SoCal
Vonage vs. Time Warner Cable SoCal

Vonage UK Review
Vonage UK Review

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Vonage Pros and Cons for 2006

Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review
Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review

Salt Lake City: impressions after several months
Salt Lake City: impressions after several months

Vonage Reviews

Cable Should be Proud to be a Pipe

Vonage In Print NewsIf you ever sense that a meeting with MSO executives is sliding into the doldrums, spice up the conversation by asking them what they think about becoming a "dumb pipe" in the high-speed data business. In a matter of milliseconds, you will be on the receiving end of a heated diatribe about cable's intelligent network advantage, integrating content and applications, blah blah blah.

Nearly seven years after the first large-scale commercial cable modem deployments, this remains a visceral cable industry issue. Why? Because in the depths of their psyches, some MSOs cannot conceive of not controlling every last penny of service or application value that is generated from the cable modem connection they install in the home. It is a legacy monopolist mindset that manifests in a mythical quest for complete vertical integration. That is, owning both the conduit and the content. However, this Holy Grail has always proved in competitive markets to be nothing more than, excuse the pun, a pipe dream.

It's time for MSOs to wake up from this fantasy, honestly assess their position in the value chain and aggressively execute accordingly. To do this, they need look no further than their core video and newer high-speed (HSD) data businesses.

Let's start with HSD. Despite claims to the contrary, this hugely successful consumer offering is in fact nothing more than a pipe business. Cable operators are simply selling all-you-can eat bandwidth for a fixed price, typically $40-$50 per month. And what a business it is, by the way, as every new subscription more than doubles revenue and cash flow per video household.

While euphemisms abound to describe the cable operator's historic role in video, at the end of the day, they are primarily, you guessed it, still a pipe. They have built and operate hybrid fiber coaxial (HFC) distribution networks, in other words, a pipe from the headend to the home. They are most often distributors of content, not creators of it, and their channel capacity is akin to a retailer's shelf space. Like the retail distributor, cable operators support that shelf space with marketing and customer care services. Yes, there are many MSOs with video content interests, but those are typically run as standalone businesses and are not integrated with their cable TV service operations.

So why is it that when it comes to thinking about the future of broadband IP services, MSOs forget their present and historic realities and think they can or should become more than a pipe? Maybe it's all the talk about DOCSIS 1.1/2.0 and PacketCable quality-of-service (QoS) capabilities, or perhaps it's simply greed. Whatever the reason, cable operators need to get over it.

Rather than sulking about not owning everything, MSOs should embrace their heritage. Every morning, after brushing their teeth, they can look in the mirror and say "I am proud to be a pipe." This is the attitude that built cable's multi-billion dollar video business, and it can do the same for high-speed data.

It's time to abandon the delusional vision of vertical IP integration once and for all and focus on a simple goal: sell as much pipe as possible and be a content/application distribution partner.

Let's start with the second item first. Unfortunately, the first back-room response from MSOs when it comes to unaffiliated broadband services like Vonage (IP telephony), Movielink (video on demand) or peer-to-peer apps, is often, "let's find a way to shut down these bastards." Because that's not palatable to the public, the next thought is "let's implement byte caps to make consumers who use them pay extra for consumption."

Rather than nickel and dime consumers on premium services, cable operators should partner with these providers to sell as much pipe as possible. Encourage consumers to buy best-effort cable modem access to get Vonage and collect the Internet access fee. On top of that, offer a premium service that prioritizes Vonage traffic on the network, perhaps branded as an "MSO assured" or "MSO accelerated" service enhancement. Sure, cable operators should offer their own voice services. But they shouldn't miss the opportunity to partner with Voip players, and other ISPs for that matter, to drive penetration of their HSD access product.

And MSOs need to start partnering with device or service-specific application providers, such as game console and home security platform players, to push broadband penetration beyond the PC.

When it comes to selling pipe to PC owners, cable operators ought to put the pedal to the metal on basic product segmentation to drive widespread consumer adoption. Why settle for 20% cable modem penetration at $45 a month? Why not sell more pipe by offering a lower-price, lower-speed tier for, say, $25 a month? With DOCSIS modems available to MSOs at well under $50, is there any reason dial-up services should continue to exist? Only if cable operators are too apathetic to offer a compelling narrowband replacement product.

Consider an extremely simple analysis of a 250,000 homes-passed cable system. With 20% penetration for a $45 monthly service tier, the MSO generates $27 million in annual revenue and $13.5 million in annual cash flow. But, if it offers a $25 tier that achieves 35% penetration, even if the $45 tier take rate slips to 15%, annual access revenue would still climb 42% to $46.5 million while cash flow would increase 8% to $14.7 million.

Even so, when you talk to cable operators about this, the common response is: "Cable modems are money-making machines. Why should we drop prices when we've seen no falloff in demand?" Yes, but a falloff is coming in the next 24 months. And more importantly, what about the opportunity cost, or lost revenue and cash flow, for the MSO by not accelerating demand? In other words, be sure to consider the net-present value of a customer that signed on to cable and not DSL, both in terms of revenue and the savings in future switch-over marketing costs. And, of course, what about the value derived from negotiating with application and content partners when an MSO has 50% rather than 20% broadband penetration?

The fundamental question on the table for MSOs that defer cable modem product segmentation because they're "installing at their capacity" remains: Why not add more capacity?

If Sony had overwhelming demand for a red-hot electronics product, would it open another assembly line to ramp production and sales, or settle for flat volume? That's a no-brainer, of course. Likewise, cable operators should continue to ramp up their "pipe factories" and move as much product as possible out the door.

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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 for details.

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