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PostPosted: Sun Aug 13, 2006 10:49 pm    Post subject: Associated Press: Vonage market share slipping Reply with quote Back to top

Quick summary: Overall Voip growth slowed down, from 28% to 21%, and the vast majority of new subsribers went to Cable-Cos rather than pure Voip companies. The three biggest Cable-Cos added 622K new customers last quarter, while Vonage added a mere 243K.



Internet phone subscribers up; Vonage lead slips to cable

By Bruce Meyerson
Associated Press

NEW YORK – U.S. subscribers to Internet-based telephone services grew 21 percent to 6.9 million in the second quarter, with cable TV companies expanding their lead in market share compared with Vonage and other pure-play providers, the research firm TeleGeography said.


[...]

The report released last week also added some credence to the worries that have bedeviled the stock price of Vonage Holdings Corp., the biggest Voip provider, whose share price has tanked since an initial public offering in May: Cable TV companies now account for 60 percent of Voip subscribers, up from 52 percent in mid-2005. Vonage and other pure-play Voip providers serve the remaining 40 percent, or about 2.8 million subscribers.

“Even more significantly, (cable companies) accounted for 68 percent of new subscribers added in the second quarter, a sign that (their) aggregate consumer Voip market share will continue to grow in coming months,” the report said.


[...]

While the cable companies entered the market after pure-play Voip companies, “their superior financial resources and established customer relationships have provided them with a significant marketing advantage,” the TeleGeography report said.

Vonage Holdings Corp., its quarter sullied by the embarrassing stock performance since its IPO, remained the industry leader with 1.8 million subscriber lines. Time Warner Inc.’s cable TV business was second again at nearly 1.6 million. The companies added about the same number of accounts, with 243,000 for Vonage and 234,000 for Time Warner.

Though Cablevision Systems Corp. remained the nation’s third-largest provider, growing by 122,000 subscribers to 987,500, No. 4 Comcast Corp. is now on track to surpass it by year-end, TeleGeography said.

Comcast, which launched Voip more slowly than most of its cable rivals, posted a 73 percent jump in users during the second quarter, finishing with 721,000.
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