Vonage is going to lose more market share to Sun Rocket

Posts: 111 · Vonage Forum Senior Joined: Jun 15, 2006 Posts: 111

How long can Vonage charge $25/month when SunRocket charges one third of that price for nearly the same service?

A group of investors recently gave SunRocket $35 million. They could have used that money to buy shares of Vonage, but instead they clearly felt that SunRocket was a better, more compelling investment than Vonage.

I expect VG subscriber growth again to weaken this quarter, just as it did last quarter. Vonage will not be able to keep growing unless it cuts prices. Problem is, it can't afford to cut prices.

Bankruptcy is looming ahead, probably in less than 12 months....

Posts: 94 · Vonage Forum Senior Joined: Jun 17, 2006 Posts: 94

Sounds like Big Time is getting nervous!

Stock seems to have bottomed and now we're seeing all of the directors buying stock.

There can be no more bullish sign!

I wouldn't be short this stock. Cover!!!

Posts: 75 · Vonage Forum Senior Joined: Jun 01, 2006 Posts: 75

Edge wrote:

Sounds like Big Time is getting nervous!

Stock seems to have bottomed and now we're seeing all of the directors buying stock.

There can be no more bullish sign!

I wouldn't be short this stock. Cover!!!

Hmmm....

Price on June 17th: Around $8.30 (ballpark)
Price today: Around $6.65

Roughly a 20% loss in value.

Posts: 2

BigTime wrote:

How long can Vonage charge $25/month when SunRocket charges one third of that price for nearly the same service?

A group of investors recently gave SunRocket $35 million. They could have used that money to buy shares of Vonage, but instead they clearly felt that SunRocket was a better, more compelling investment than Vonage.

I expect VG subscriber growth again to weaken this quarter, just as it did last quarter. Vonage will not be able to keep growing unless it cuts prices. Problem is, it can't afford to cut prices.

Bankruptcy is looming ahead, probably in less than 12 months....

I looked over at Sun Rocket's rates and I would not be saving a dime. With the International calling and Unlimited services I now have with Vonage I would be paying exactly the same so there is no added value for me to switch. Sinking, dieing, or bankruptcy withstanding I am sticking with Vonage til the end! And by the way I'm a IPO investor too! It stings but there may be relief in sight if any Class Action is authorized.

Posts: 5 · New Forum Member Joined: Jan 17, 2007 Posts: 5

Yeah, I'm not sure where big time got his numbers. 1/3? So I guess sunrocket is giving away unlimited service for $8/month. It would cost sunrocket money to have that customer. Last time I checked you can pay $200 up front for a year with sunrocket (so if you don't like them too bad you have them for a year) or you can pay $24.95 by the month. 4 cents a month cheaper than Vonage. You might be able to buy a piece of gum every month with that savings. It will be worth it for some who want to pay $200 up front and only call in the u.s., but I don't think sunrocket will steal too many Vonage customers. Some, but not too many.

Posts: 10 · Vonage Forum Associate Joined: Jan 09, 2007 Posts: 10

well its been quite a whirlwind for vonage... likewise the company still have a shot on reclaiming their financials... the answer on it is patience! After all patience is a virtue... By the way im a Vonage user and I think you guys are right there's no way sunrocket will take out Vonage by storm... hehehehehe as what I have known sunrocket depends on Vonage backbone if you know what I mean... heheh lets just see what will happen this year.