Not a good sign

Posts: 830 · Vonage Forum Evangelist Joined: Jun 08, 2007 Posts: 830

The Wall Street Journal reports that Vonage auditor BDO Seidman says there is "substantial doubt" the Internet telephony pioneer can continue as a going concern.

http://www.fiercevoip.com/story/just-how-bad-can-things-get-at-vonage/2008-03-24

I hope Vonage is looking at suitors, just too good of a service to go away.

Posts: 11 · Vonage Forum Associate Joined: May 20, 2008 Posts: 11

Time to abandon ship? Not yet I supposed and besides I got Onesuite.com service just in case Vonage do a Sunrocket which I hope not.

Posts: 830 · Vonage Forum Evangelist Joined: Jun 08, 2007 Posts: 830

Sunrocket was small and really had no value to a suitor. Vonage is big, and would have some value as a buyout.

Recent earnings showed a substantial narrowing of losses, moving toward a profit. However, this was at the expense of reduced marketing, which limited the number of new subscribers. Vonage plans on increasing their advertising in the fall.

I suspect Vonage is stabilizing their services before the next big push in marketing. Additionally, the recent announcement of Vonage teaming with Covad Communications Group to offer a bundle of voice-over-IP and broadband services is not expected to be rolled out until the end of 2008. At least Vonage has the hope of a double play to compete against the cable companies..