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Vonage VoIP Forum Digest - October 25, 2007

Vonage VoIP Forum Digest

October 25, 2007

By Daniel Connor

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

First, let us catch up on some major Vonage news. Then, let's go straight to two Vonage Forum threads, one about a router and the other one is about a security issue. We'll also check in on Vonage's stock price.

In The News

Vonage Announces Settlement of Patent Dispute with Verizon

Vonage today announced that the cost of its settlement of a patent dispute with Verizon will be effectively capped at a maximum of $32 million, in addition to the $88 million already accrued and held in escrow. The $88 million includes a $66 million cash-collateralized bond, a $12 million second-quarter escrow payment, and a $10 million third-quarter escrow payment made in the fourth quarter of 2007.

Vonage and Verizon earlier today announced they have agreed to resolve their patent lawsuit. The terms of the resolution depend on how the Court of Appeals decides Vonage's pending petition for rehearing regarding two of the Verizon patents (the '574 and '711). If Vonage wins rehearing on either the '574 or '711 patent or if the injunction is vacated as to the '574 or '711 patent, Vonage will pay Verizon $80 million. If Vonage does not win rehearing on either the '574 or '711 patent, or if the stay is lifted reinstating the injunction, Vonage will pay $120 million, which includes $2.5 million payable to certain charities.

"We're pleased to put this dispute behind us and believe this settlement is in the best interests of Vonage and its customers," said Sharon O'Leary, Vonage Chief Legal Officer. "This settlement removes the uncertainty of legal reviews and long-term court action and allows us to continue focusing on our core business and customers."

The latest decision in the litigation came on September 26, 2007 when the U.S. Court of Appeals for the Federal Circuit partially remanded a March 8 jury verdict in the U.S. District Court of Alexandria, Va. that the company infringed on three Verizon patents. The appellate court remanded the infringement verdict on the 880 patent and affirmed the verdict on one patent claim in each of the 574 and 711 patents. The appellate court vacated the entire damages award of $58 million and the 5.5 percent royalty, and directed that the trial court retry those aspects of the original case. Vonage's petition for a rehearing en banc was filed on October 10, 2007.

On The Vonage Voip Forum  

New Vonage Forum Member soul has a question that he turns into a title of a new Vonage Forum post called, Linksys WRT54G, how do i set it up with Vonage? 

"I posted earlier about the netgear router but i guess no one knows how to get that don," soul writes. "Bought a new wireless router. ran the installation CD. i now have a wireless connection that says it is connected to the internet, the signal is excellent but cant open anything on the web."

Here are the specs:
Router : Linksys WRT54g
Connection type : Broadband
modem :220BX ADSL2 + modem beetel
in the status of the connection it says it's connected to :Intel(R) PRO/100 VM Network Connection

"And my Vonage doesn't work because i disconnected the previous linksys router to try and get the new router to work. so my problem is - can i configure this router so i can get my Vonage up and running and have wireless at the same time?"

Help is here from fellow Vonage Forum Member Abera, who writes:

"Hi soul,

"What we need to do is check some connectivity. First, run ipconfig /all from the command line and make a note of your ip address, subnet mask, and default gateway address.

1) Go to the command prompt and type "ping localhost" without the quotes->Press Enter. What happens?

2)If that works, try pinging your router by going to the command line and typing "ping defaultGatewayAddress" without the quotes (and where you substitute the words "default gateway address" with the IP address. What happens?

If step 1 was successful and step 2 was not, try double clicking on your connection in the system tray->select the Support tab, and click "Repair". Then try to open your browser and type in Do this step even if the repair wizard tells you that your connection could not be repaired.
Post back with what happens."

Concerned about reports of a Vonage security vulnerability with a specific product, Vonage Forum Member tmbeem starts up a Vonage Forum thread with the name of, Motorola VT2142 Vulnerable to Voip Attacks...

"Being a user of Motorola VT-2142, this report concerns me greatly," tmbeam writes. "Does anyone else know anything about this. Vonage is reported to know about this, but hasn't responded as reported by Reuters."

But then two other Vonage Forum Members reply with perspective.

Erlton writes, "According to the post at Vonage is not the only Voip provider that has this problem. They also suggest that encrypting Voip calls would solve the problem. "

And then howiewifi adds this:

"Almost any Voip service is vulnerable here. Of course, POTS is vulnerable too. The "Denial of Service" attack is equivalent to someone continually dialing our POTS phone number (or accidentally putting you in an auto-redial FAX, which I have had happen to me), which then results in you taking the phone off the hook and throwing it in a closet.

For the wiretap case - there's nothing in Voip that can't be done with some pretty simple equipment connected to the POTS network interface on the outside of your house.

Unless you are in the "security business", which these guys happen to be in, this comes out as a 'so what'?"

Vonage Stock Report

On Thursday, Vonage stock closed at $1.53 a share, a decrease of 7 cents (-4.38%)  from Wednesday's $1.60 a share close, but then again, today's closing price was fiver cents higher than today's lowest Vonage stock price and that was $1.48 a share. At the close of today's trading, Vonage shares traded on today became 3,234,900 shares.

But it is very important to note that in Thursday's after-hours trading- which took place after the settlement with Verizon was announced- Vonage stock had climbed all the way up to $2.62 a share.

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

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

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