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Vonage Strike Two
by Andrew McCaskey
The news that Vonage was found guilty – to the tune of almost $70Million- for infringing on seven Nextel patents (now owned by Sprint) is one more in a round of lawsuits that surely will put the last of the nails in the coffin by Spring of 2008.
Competitors are springing up all around – and with the power of the ISP service providers themselves (Comcast, Time Warner, AT&T) to go in to the business of VoIP calling – the survival of Vonage looks like a case of nowhere to turn.
As I mentioned in the TPN Roundtable, the ooma box – by cleverly combining the local loop distributed termination and sidestepping the 911 issue – looks like a strong competitor. So strong, in fact, that the real slugfest is going to occur in about a year, (if ooma gains traction and critical mass in it’s network) when the traditional telcos and long distance providers swing their lobby efforts into line.
Vonage will, by that time, be out of cash – and with a massive churn rate and cost of acquisition just to stay above water – is going to sink, even without any help from those wishing to toss a cinder block tipped lifeline.
And there are plenty who would like to offer a hand. Just as a warm up exercise for the real fight, yet to come.
Skype or ooma for Round Two ? We’ll see who draws the short straw.
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