A Brilliant Move By Vonage

I have traveling for so long that I didn’t know the reason behind the drop in Vonage’s stock price which is now around $10. According to Russell Shaw the reason seems to be the fact that Vonage is being very aggressive with customers looking to cancel. The company is offering free services and a drop in price o keep customers.

For this the stock got hammered.

Here is my question.

If so many people are focusing on Vonage’s amazingly high cost of customer acquisition, why is it bad for Vonage to spend a far less amount to keep a customer on their network?

The phone companies do the exact same thing.

This isn't a new practice.

I think it is very smart and it doesn’t seem like something worth punishing the company for. Rather they should be rewarded.
The opinions and views expressed in comments, blogs, etc. are those of the authors alone and not necessarily those of TMC, TMCnet, or its editors. TMCnet reserves the right to edit, delete, or otherwise make changes to the content that appears on these pages at its own discretion and as it deems necessary.
| 1 Comment | 1 TrackBack

Listed below are links to sites that reference A Brilliant Move By Vonage:

A Brilliant Move By Vonage TrackBack URL : http://blog.tmcnet.com/mt/mt-tb.cgi/25801

Last week, Russell Shaw reported on how Vonage is essentially "begging" customers to stay by offering discounts (down to $19.99/month) to their monthly service. As a Vonage customer myself, still looking to dump Vonage in the next few weeks (... Read More

1 Comment

I agree, Vonage in Barrons this weekend was the ABSOLUTE HATCHET job just like Barrons did to Level3 a few months ago..........Vonage is getting NEW customers at $4.99 per month for a phone line with NO Free minutes outbound........$9.99 per month w/100 outbound minutes.........this ADDS customers to VONAGE and takes away a customer from an RBOC! SMART MOVE VONAGE!!! PS Kudo's to Packet8 Customer Service for issue SOLVED and RESOLVED with My stupid credit card company===I will be SWITCHING credit card companies AFTER this episode in Black Hole Fraud stupidity! Bottom Line, Vonage adding, RBOC's losing LandLines!

Leave a comment

Recent Activity

Saturday

Friday

More...

Recent Comments

  • Scott: My name is Scott Hardin. I am the son of read more
  • Scott: My name is Scott Hardin. I am the son of read more
  • Backbooner: The answer to that is the same as how "someone" read more
  • Bart: "It's remarkable xG has managed to shut Marc up. I read more
  • Backbooner: It's remarkable xG has managed to shut Marc up. I read more
  • prefabrik: How can be a cycle set up and controlled? Is read more
  • Sheeri: IPTV, is where DSL was back in early 90s. We read more
  • zayıflama: Your could ask someone from Gimp for Mac community read more
  • Peter Koz: Rich, I am interested in your comments regarding Proxim's new read more
  • Catherine: As a Brit, I have noticed a growth of royal read more

Subscribe to Blog

Blogroll

Recent Entry Images

  • sagem-interstar-xmediusfax-outbound.png
  • tmcnet-feature-plaer-jquery-javascript.jpg
  • monopoly.jpg
  • itexpo-east-2009-exhibit-hall-aisle.jpg

Archives

Around TMCnet Blogs

Latest Whitepapers

TMCnet Videos