Jon Arnold on Vonage

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Jon Arnold on Vonage

Jon Arnold has done a great job of analyzing how Vonage is doing and according to the Arnold, the latest quarter had some ups and downs. Jon spells out why Vonage may not make it into 2009 and I for one would be sad to see this happen as Vonage does a great job with its services and web interface.

In addition, if Cable becomes one of the few choices left for residential service, we all lose as Vonage allowed the ATA to move with the customer. In addition, the ability to block calls at certain hours of the day has not been widely matched by the cablecos, etc.

Here are some excerpts of an article which is worth a close read:

Vonage is trying to strengthen its value proposition with new features such as visual voice mail and virtual phone numbers, and planned features such as outbound fax and ContactBook, but it essentially remains a landline replacement service. I agree with Jeff Citron’s position that there will always be a market for best of breed services like this, but it’s increasingly becoming a niche, as the bundle continues to win the day. Furthermore, most of the global growth potential for residential VoIP lies outside the U.S., where Vonage has limited presence and brand recognition. Their survival rests primarily on how they do in their home market.

Vonage has to rise above that and find ways to become exceptional providers of customer service. In my view, it is far more important for them to protect the base they have worked so hard to build so far, than it is focus on growth for the sake of scaling the business.


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