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On Sep 30, 2016 at 00:48:03

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Vonage In The News
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Vonage Pros and Cons for 2006
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Vonage, a VT2142 and a RTP300, My Experiences - A Detailed Review
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Salt Lake City: impressions after several months
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Vonage VoIP Forum Digest - March 26, 2007

Vonage VoIP Forum Digest

March 26, 2007

By Daniel Connor

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

First, we'll see what Vonage had to say today about that patent ruling, and then revisit Vonage's reaction on Friday to that ruling in the patent dispute with Verizon.

Next, let's go straight to a Vonage Forum thread about a specific equipment recommendation, and then there's a thread I will write on concerning an adapter issue. Then we'll update Vonage's stock price.

In The News

Vonage: Friday's Ruling Only One Step In Long Legal Battle

Vonage reaffirmed its confidence in prevailing on appeal and in continuing to meet the needs and expectations of its over 2.2 million subscriber lines despite a ruling March 23 in Verizon's favor and a disproportionately-negative reaction from the stock market.

"To paraphrase Mark Twain, the rumors of Vonage's death have been greatly exaggerated," said Mike Snyder, Vonage's chief executive officer. "Friday's events represented one small step in what is sure to be a long legal battle.

"The fact is we've been preparing for this verdict and the possibility of an injunction for months," Snyder added. "For the market to react the way it did to the recent rulings shows an unfortunate lack of understanding of the judicial/appellate system, a lack of appreciation of Vonage's resourcefulness, or, perhaps, both. Anyone who's counting Vonage out is making a huge mistake."

If, as expected, the judge enters a permanent injunction against Vonage on April 6, 2007, but fails to grant the company's request to stay the injunction pending its appeal, Vonage will immediately file for a stay with the Court of Appeals for the Federal Circuit. In addition, the company reconfirmed its plan to file a notice of appeal to the Circuit Court of Appeals to set aside the jury verdict which was handed down on March 8, 2007.

"No matter what happens on April 6, the reality is this litigation is going to take years to make its way through the legal system," said Sharon O'Leary, Vonage's executive vice president and chief legal officer. "We are optimistic the trial court judge will stay the injunction. If he doesn't, however, we're very confident the Circuit Court of Appeals will stay the injunction through the entire appeal process.

"And once the case is up on appeal, we are confident that the appellate court will overturn the verdict based on the faulty claim construction of the patents involved." The Circuit Court of Appeals, which will hear the case shortly, has reversed prior verdicts involving flawed claim constructions approximately 40 percent of the time, noted O'Leary. Verizon's overly broad construction of the patent claims was adopted across the board which is unprecedented, given the large number of claim terms.

Vonage's accomplishments continue to validate its business model and strategy. The company has achieved 19 consecutive quarters of double digit revenue growth, doubled revenues to $607 million in 2006 alone, and added nearly 1 million net subscribers last year.

"We're continuing to innovate and provide reliable, affordable phone service to millions of customer lines. And that isn't going to change," Snyder added.


Vonage Says Court Ruling Will Not Result  Service Interruptions 

Because this news is so important, I thought I would repeat it in today's Digest.

The U.S. District Court in Alexandria, Va. has  issued an order enjoining Vonage from using certain Voip technology named in its patent litigation with Verizon. The order is not immediately effective, however, and Vonage is confident its customers will see no change in their phone service.

The court announced its intent to hear stay argument in two weeks' time. At that time, the court intends to render a decision regarding the stay, as well as making the injunction effective. If the court denies the stay, Vonage will seek a stay through appeal from the Federal Court of Appeals. Vonage is confident it will be able to obtain a stay through appeal.

"We are confident Vonage customers will not experience service interruptions or other changes as a result of this litigation," said Mike Snyder, Vonage's chief executive officer.

Vonage says it has drafted its notice of appeal of the March 8 jury verdict and will file that notice at the appropriate juncture in the court proceedings.

"Our fight is far from over," Snyder said. "We remain confident that Vonage has not infringed on any of Verizon's patents - a position we will continue vigorously contending in federal appeals court - and that Vonage will ultimately prevail in this case."

Snyder continued, "Despite this obvious attempt by Verizon to cripple Vonage, the litigation will not stop Vonage from continuing to provide quality Voip service to our millions of customers."

"Our appeal centers on erroneous patent claim construction, and we remain confident that Vonage has not infringed on any of Verizon's patents - a position we will continue to vigorously assert in federal appeals court," adds Sharon O'Leary, Vonage's executive vice president, chief legal officer and secretary. "Vonage relied on open-standard, off-the-shelf technology when developing its service. In fact, evidence introduced in court failed to prove that Vonage relied on Verizon's Voip technology, and instead showed that in 2003 Verizon began exploring ways to copy Vonage's technology," she added.

Vonage emphasizes it is focused on growing its business by investing in the rollout of new technology and features, and continuing to grow its customer base. Vonage's accomplishments continue to validate its business model and strategy. Vonage adds it has achieved 19 consecutive quarters of double-digit revenue growth, doubled revenues to $607 million in 2006 alone, and added nearly 1 million net subscriber lines last year.


On The Vonage Voip Forum

Here on the Vonage Forums, we often get threads asking about specific equipment that can be used with the Vonage service.

Such a thread is Anyone using Netgear FVX538 router?, and the thread was begun by Vonage Forum Member mjstraw.

"Anyone using Netgear FVX538 router?," asks mjstraw, whose real first name is Mark.

"Spec sheet features list includes SIP 2.0 QoS "support" but I can't figure out what that means. No mention anywhere in the reference manual, or on any of the config screens," he adds. "Nothing in the drop-down list of predefined services for setting rules/priorities either."

Now here comes a follow-up post from fellow Vonage Forum Member datadoit.

"You're not alone Mark," writes datadoit, whose first name is Mike. "I see nothing in the Netgear FVX538v2 that mentions SIP, using firmware 2.0."

"I did notice that hooking up a Linksys SPA942 directly to a Vonage Business Plus account behind the firewall required no configuration in the Netgear whatsoever," datadoit adds. "It just worked for both inbound and outbound.

"However, to make it work for an Asterisk PBX, had to set up inbound services in the Netgear for SIP/UDP ports 5060-5070 and RTP/UDP ports 10000-25000," datadoit makes sure to explain. "Finally, after opening the ports, had to actually reboot the Asterisk PBX and then all was well. In fact, whenever the router is rebooted, always seem to also have to reboot the PBX to make everything work."

Now I am going to do something a bit different by pointing to a thread still under discussion. I am doing this in the hopes that Vonage Forum Members will help fellow Vonage Forum Member cryptmagic- who decided to open a thread this morning entitled, Motorola VT2142--Problem.

"Anyone have a problem where the adapter refuses to show the calling party your phone number?," cryptmagic writes. "Also I am not sure, but it feels this unit has slowed down my internet since it is connected straight to my cable modem, with my router connected to it."

Follow-up posts are encouraged, of course.

Vonage Stock Report

On Monday on the New York Stock Exchange, the first business day after the news hit about the ruling in the Vonage vs. Verizon patent suit,  Vonage stock closed at $3.37 a share, which was an increase of 37 cents (+12.33%) from Friday's closing price of $3.00 a share, but then again it was 26 cents higher than the day's lowest price for Vonage stock, and that was $3.11  a share. Total Vonage shares traded Monday were 6,600,000. On Friday the total Vonage shares being exchanged were 9,881,400 shares. 

Once again, our Vonage Stock Forum can be reached from this link

We've Updated Our VoIP Speed Test

Because we get new Vonage Forum Members here all the time, I'll call your attention to our upgraded Voip Speed Test.

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 has been configured 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.

That's what's hot about Vonage today. Check with us tomorrow for our next edition of the Vonage VoIP Forum Digest.

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