It's on the wall....

Posts: 29 · Vonage Forum Junior Joined: Aug 18, 2005 Posts: 29

More bad news:

http://biz.yahoo.com/rb/070418/vonage_shares.html?.v=3

Interesting tidbits include:

The Internet phone company also cited the risk of service interruptions, an inability to repay its debt and a decline in its stock that could lead to the delisting from the New York Stock Exchange. The warning was part of its annual report filed with the U.S. Securities and Exchange Commission on Tuesday.

Posts: 17 · Posted: Thu Apr 19, 2007 9:13 am Post subject:

Well.... I guess I either need to find a new service today... or it's back to ol' AS&S... REmove that &, and youll know why I moved to Vonage.

Posts: 2257 · Posted: Thu Apr 19, 2007 9:47 am Post subject:

I think the statement "the risk of service interruptions" is being misinterpreted.

This is a statement on a 10-K. On a 10-K disclosure, a company tries to assess all possible risks that may affect their performance. It's a way of protecting yourself from being sued by shareholders - shareholders can't claim that the management team was silent about the risk of the company CEO being eaten by a mutant space whelk if, in fact, that same risk is in their 10-K.

Service interruptions are a risk. Those service interruptions could potentially come from a finding in the court, or could come from other technical means, such as Verizon interfering with connections to Vonage subscribers, or simply because Vonage will need to do cost-cutting and there may be some interruptions as they consolidate servers and become more lean. Or they may not have any service interruptions at all (or, I should say, no more than normal).

Yes, there has been a spate of outages, and it is worrying - but Vonage has had flurries of outages before. If you are affected directly, by all means - do what you need to do. Voip has more technical bits than landline, and by nature landline is going to tend to be more reliable (of course, tell that to my wife's 92 year old grandfather who has been waiting over a week for Verizon to come out and fix his landline after it was damaged in the last storm).

If they have service interruptions, it could cut into their revenues, which could cause them to be unable to repay their debts, which could eventually lead to delisting. They are not citing an INCREASED risk of outages, only that outages, if they occur, could eventually lead to bigger problems. This is not "news" - if Vonage went down for three weeks a year ago, they'd still be in deep horse puckey with their customer base, and many would evacuate.

Of course, a "panic evacuation" like some people will do is also a risk. If enough customers decide to leave, then revenues drop, etc etc. It's sorta like a "bank run" in the early 20th century. But I doubt the evacuation will reach that level of critical mass...

Vonage is on pins-and-needles until next week. At that point, they find out if they are allowed to continue signing up new customers. If they lose that battle, then (please pardon my overemphasis of this fact): Your. Phone. Will. Still. Work.

If they lose the right to sign up new customers, then (as their own lawyers have said), they are cut off from their oxygen supply. That does not mean they are immediately dead. There are a number of things that can happen, but during that period... Your. Phone. Will. Still. Work.

Their logical step, when their cash reserves run dry or get low, will be to declare Chapter 11. Even with no new customers coming in, they are still making money (before advertising expense - and with no new customers allowed, they'd stop bleeding money on advertising). During Chapter 11... Your. Phone. Will. Still. Work.

During Chapter 11, they will undergo a restructure. Part of that process may include being bought out by another company, and the new company will be interested in a 2+ million customer base. Either that, or they will find a way to emerge. Or they will go to Chapter 7 (receivership), at which point someone will buy out their remaining assets, including their customer base.

UNTIL and UNLESS someone buys out Vonage and decides to abandon a profitable 2+ million-strong customer base... Your. Phone. Will. Still. Work.

And, at any time during this proceeding, you will be able to port your number to the new carrier of your choice.

So, no need to panic and drop your Vonage line now. It will be weeks, probably months, and possibly years before your existing Vonage line stops working. If it does.

Vonage is making money off your business with them. Anyone who buys them out would be foolish in the extreme to throw away that. We, my Vonage-using friends, are a giant mooing Cash Cow. Cash Cows are milked, not slaughtered. Wink

Posts: 172 · Vonage Forum Master Joined: Apr 19, 2006 Posts: 172

That's the spirit. I'm not panicking. So far I have no problem so we'll wait 'til the end. If Vonage will be bought, then I'll still have a phone service. Besides, whatever happens I have a cellular phone I always use everyday.

Let's not lose hope people. Think of the savings you got when you switched from a regular landline to Voip like Vonage? Who knew we'd be able to make calls with the use of the internet centuries ago? I call that progress so let's be positive...negativity could kill you...(don't take this literally) Wink

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Who said being Beautiful automatically means you're dumb?

Posts: 2 · New Forum Member Joined: Feb 20, 2007 Posts: 2

I recently got a phone call from Comcast begging me to switch to their Voip plan "starting" at $33 a month, plus tax. AS&S has also come calling for me to return to the fold with their $40 plan. I have no intention on switching, even if I do have to stick out some rough times.

My only wish in this case is that provisions were made by other companies to let us keep our current convertor devices. If the worst does happen and I find myself moving to P8 or SR or (last choice ever) Comcast, then I want to keep using my cute little DLink adapter. It'll never happen, but it would be nice.

I'm keeping my fingers crossed for Vonage in this court fiasco. I have been nothing but pleased with my service and still recommend them to friends and family.

Posts: 102 · Posted: Thu Apr 19, 2007 7:57 pm Post subject:

even if i just recently used Vonage, late last year, i know from family experience,since they have been with the service since 2003, that it has been delivering good service and is trying to improve every year

we're hoping that the outcome of this lawsuit would still be for our benefit...consumers in general Idea

Posts: 4 · New Forum Member Joined: Jun 04, 2006 Posts: 4

I'm sticking it out to the bitter end..and I hope that never comes....

I'm very happy with Vonage...

Posts: 102 · Posted: Fri Apr 20, 2007 11:45 am Post subject:

now thats the spirit crosshairs!!! Very Happy

Posts: 30 · Vonage Forum Junior Joined: Dec 18, 2006 Posts: 30

My spirit is in put up or shut up. Vonage cannot put up. There is a reason they are having problems.....it can't all be connected to Verizon. I truly believe they will file bankruptcy and I'm bailing and will find someone else to provide my services......uninterupted.

Posts: 102 · Posted: Fri Apr 20, 2007 12:09 pm Post subject:

Quote:

There is a reason they are having problems.....it can't all be connected to Verizon.

again it's a Voip service..service that helps save money by maximizing our internet connection. there are a lot of factors that contribute to the problem and verizon could be just one of them..

service without interruption...might as well convert to landline which could cause a lot financially

for satisfied customers like me we have high hopes that Vonage could still survive