WIMAX will accelerate Vonage's growth

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

pcapelli wrote:

Edge wrote:

I have 4 phone numbers in two states and my total charges are under $69 per month.

If Time Warner can replicate that (????), then I would consider switching.

That *is* a good deal. For my benefit (I'm a bit slow sometimes), please break down how you pay for 2 high speed internet connections in two states, plus 4 vonage phone numbers, for $69/mo.

Both properties already have broadband through Time Warner and Comcast. The $69 is the additional cost of converting from land lines to VOIP.

My original statement stated that it was cheaper for me you use Vonage than it would be to use Time Warner or Comcast.

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

They charge $15/mo more than VG and are still gaining market share while VG is losing market share. When TW is cheaper, watch out VG!

Edge wrote:

Perhaps

But such an offer has not been made yet. Not even close. Time Warner charges $39.99 for their phone service. Therefore the total charge is $89.99.

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

VG is still in front with over 2MM subscribers.

Time Warner will also find it hard to capitalize on any shift to WIMAX.

Time Warner's business is faster growing because it is smaller. It is also limited to their cable customers. Vonage's business is limited to anybody that has broadband.

At $600 per subscriber and with subscriber growth at over 30% a year, we may have hit a bottom on this stock.

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

Bottom line is Vonage has to cut its prices or growth will continue slowing. Last quarter was the first quarter that new subscribers numbers came in below the previous quarter.

The problem is, it can't afford to cut prices. SunRocket recently cut its already lower prices in half. Anyone who does comparison shopping (most of the market VG is aiming at) will quickly see that Vonage is just not competitive.

I expect next quarter's growth to be very disappointing.

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

Stay tuned!

At 2MM subscribers and counting, they are at the high end of their projections.

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

VG is still in front with over 2MM subscribers.

Time Warner will also find it hard to capitalize on any shift to WIMAX.

Time Warner's business is faster growing because it is smaller. It is also limited to their cable customers. Vonage's business is limited to anybody that has broadband.

At $600 per subscriber and with subscriber growth at over 30% a year, we may have hit a bottom on this stock.