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Vonage VoIP Forum Digest - June 8th, 2006

Vonage VoIP Forum Digest

June 8, 2006

By Daniel Connor

Welcome to today's edition of the Vonage Voip Forum Digest. 

In the news, we'll catch up on Vonage's stock price, as well as what a well-known analyst quoted in Business Week says about it. We'll also go over a Vonage Voip Forum thread about disconnecting the physical connections to an old phone line, as well as a thread about "bandwidth saver mode."

In The News

Vonage Stock News

On Wednesday on the New York Stock Exchange, Vonage stock closed at $11.99 a share, down only 11 cents from Tuesday's $12.10 a share close. That's still higher than Friday's price, which was $11.98 a share. Total trading volume for Vonage Tuesday was 1,239,000 shares. That's the least amount of shares traded in one day since Vonage stock became available. To me, anyway that could indicate that investors aren't jumpy about the Vonage stock and like me, are looking at it as a long-term investment.  

Obviously though, Vonage stock is still a hot topic - one that interests Vonage investors, lawyers for at least a few of those investors, and from what I can tell by looking at our page views, lots of you on the Vonage Forum. That's a key reason why I have grouped all this news in the Vonage Stock Forum- which you can reach from this link.

Analyst Upbeat On Vonage

Business Week today writes that some analysts are starting to sound upbeat on Vonage. 

"Leading the bull case is Albert Lin of American Technology Research. Give him credit: His case is as quantitative as it is bold. Its centerpiece is Vonage's low subscriber churn -- at current rates of defection, the average Vonage customer will stay with the company for almost four years," Business Week notes Lin as saying. "Four years times the average bill of almost $26 a month gives you $1,246. It costs about $9 a month to provide the service, leaving $814 per customer. It costs about $230 in marketing spending to find each customer now, he says, which leaves Vonage with a pre-overhead profit of $574 on every customer.

"The bear case is so well understood, people lose sight of the facts," he says. "Telcos are shocked that Vonage is so efficient about marketing. Every consumer can sing [Vonage's jingle] 'Woo-hoo, woo-hoo-hoo.'"

Lin says that for Vonage, the real competition will be over features rather than price. He foresees consumers laying out the same $26 or so they do now, but for service that includes extras like voice-mail archiving and conference calling. He notes that so far, cable companies have steadfastly resisted pushing down the price of broadband Net access even as they compete with DSL service offered by phone companies, and Lin expects more of the same.


On The Vonage Voip Forum

New Vonage Forum Member dualice has started a thread named Help with disconnecting from outside phone line.

"My phone number was just transferred to Vonage yesterday. However, I am unable to make and receive phone calls using my Vonage router," writes dualice, whose actual first name is Peter. When I plug the Vonage router into a phone wall jack, my cordless phone, somewhere else in my house, says 'extension in use.'. I called technical support and they told me that I had to disconnect my house from the outside phone line.

"How do I do that?," dualice asks. "I think I found the location where the phone line comes into the house, but it looks like it splits and goes into two sides of the same box (open, no cap)."

Gee, folks, Vonage Forum Member gfoulks sure comes back with a very helpful walk-thru type of answer.

"First thing first... You must never attach a phone adapter to your house wiring without first disconnecting your house from the telco network," gfoulks writes. "By doing this you could cause serious damage to your phone adapter because of the electric charge on the line from the telco.

"Okay now to unplug. All you need to do is go to your Telco Network Access Point," he adds. "Sometimes it is a gray box with a telephone wire going in. If you open the panel that says Customer Access you will see the wire coming in and at least one phone port that has a wire connected.

Next, gfoulks tells dualice to unplug this wire and his house will now be disconnected from the network. 

"Test your inside phone first to make sure it is dead. Now you can plug your phone adapter into your inside phone wiring," gfoulks suggests.

Then gfoulks closes his post with this important advice:

"You should put some duct tape over the phone port of the network access point with a warning to any telephone repair people to NOT connect the Telco network without first speaking to the owner," he writes. "Mark... Sensitive Network Devices, Damage Could Result if connected!"

Vonage Forum Member hal9000 was curious about bandwidth saver mode, so he decided to begin a thread about that very issue. He named the thread (no surprise here) quick question about "bandwidth saver mode".

"I read somewhere that Vonage uses two kinds of services: normal mode which transfers at around 90kb/s and bandwidth saver mode which transfers at 30kb/s," hal9000 writes. "I was wondering which one is used by default and if only certain modems use certain modes.. how do I check? is there some kind of Voip bandwidth testing site, and if i were using bandwidth saver mode, how can i switch to normal mode?"

Then I came on and answered hal9000's post.

"By default your account is setup at the higher rate. You control the settings online as needed," I wrote. "The settings are not modem specific.

Then as to the second half of hal9000's question, I wrote:

You need a test? Right Here.

Which leads me to information about the fact that ...

We've Updated Our Voip Speed Test

I wanted to call your attention to our upgraded Voip Speed Test. It's been getting a lot of comments, not only here on the Vonage Forum but on DSL Reports as well. Here's the link to the thread on DSL Reports where lots of their members (and me, as well) have been posting about the test.

OK, I guess I should get to the test itself.

Instead of the simple upload/download test, this one has all the reporting that is needed to diagnose ISP issues such as Jitter and Packet Loss.

The advanced report screen will be configured in the next day or so with a "Copy to Clip Board" button so you can easily paste the results in the forums.

I would like to thank the following members for giving valuable input during the beta testing: reebok, Steve48, NateHoy, VonageTPA, Trowski and scerruti.

For those of you that are interested in the details behind the results, the following are the tests parameters:

The test is located in Washington DC.

The data.bin file for the speed test upload/download is 10Mb with 8 seconds max time out.

75,000 bytes is used to calculate the number of supported Voip lines.

Other variables:

Voip lines simulated =1
voip bytes per packet =8
voip simulation seconds =10
voip packets per second =75

If you have any questions about this test, feel free to post them in this thread.

As we close out today's Digest, I'd like to remind you once again about some more options you have to receive the Vonage Voip Forum Digest every day. If you go to this page:, you will see a list of RSS Newsreaders from which with one or two clicks, you'll be able to get your Digest delivered directly to your Newsreader each morning. The Newsreaders we've linked to on that page include such reliable and trusted services as Bloglines, Feedster, My Yahoo!, Newsgator and Feedburner. I am open to add others, just contact me with the info of the Newsreader.

That's what's hot about Vonage today.  We'll be back on Friday morning with our next edition of the Vonage VoIP Forum Digest, including our popular In The Blogs feature!!

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