I was quoted in today’s edition of the San Jose Mercury News regarding the Verizon Vs. Vonage case. I had a busy day yesterday and I received quite a few calls from reporters regarding this issue. I already blogged about the Chicago Tribune quote.
The article in the San Jose Mercury by Steve Johnson is titled Crippling Blow to Vonage on Hold.
When I spoke with Steve, the court ordered Vonage to stop accepting new customers. After this interview however the company won a temporary stay of the federal judge’s ruling.
Here is my quote:
Some experts who track Internet phone companies agreed that Vonage could be in dire straits if it is prohibited from signing new customers.
"It's not very good for their bottom line," said Rich Tehrani, president of Technology Marketing, a Connecticut company that promotes Internet phone service. "If you're not able to get those customers back, it makes life difficult."
That assessment was shared by Rebecca Arbogast, an analyst with investment bank Stifel Nicolaus, who owns no stock in Vonage or Verizon.
"Today is a bad day for Vonage," she said shortly after the judge's decision. "And it's coming after a series of bad days. But it's not like every door is closed to them. They definitely have ample capital to keep on providing services," though she added it's unclear how long Vonage could operate without new customers.
Vonage had nearly $500 million in cash and short-term securities at the end of last year, according to the most recent financial statement it has filed with the Securities and Exchange Commission
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