Vonage NOT Saved by VoIP, Inc.

I'm still seeing tons of reports that VoIP, Inc. has "saved" Vonage from the current patent litigation lawsuit with Verizon. This is NOT true. The information I received from Ars Technica was not accurate. I immediately updated my post with a correction. Since ZDnet, CNet, Engadget, Slashdot, Gigaom and a host of other sites are reporting this inaccurate information I thought I'd create another post clarifying this in hopes that they too will post a correction. As I stated in the correction, the VoIP Inc. 8-K filing has caused a lot of confusion. Vonage’s deal with the company is a termination deal, and is completely unrelated to the development of workarounds. Basically, VoIP Inc. is no different from any of the carrier partners Vonage utilizes to get inbound calls from the PSTN to customers, or vice versa, IP calls to the PSTN.

Again, this deal is completely unrelated to the on-going patent litigation between Vonage and Verizon. Vonage may indeed still pursue VoIP patent acquisition to "skirt" around Verizon's claims, but the current deal with VoIP, Inc. has nothing to do with a workaround. So the clock still runs out Friday. If the judge decides not to stay his order, Vonage plans to ask a higher court for a stay. Stay tuned...
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3 Comments

I can't imagine the FCC will let Vonage be shut down. It would be like when Iacocca saved Chrysler from all the layoff's....it is not in the country's best interest.

-Matt

Not allowing Vonage to sign up any new users is a good compromise while they figure out the details.

http://www.businessweek.com/ap/financialnews/D8OB69KO0.htm

At Vonage's customer loss rate, I wonder how long they will be able to stay alive.

I am sure they will have to keep paying for all the advertisements they have purchased - even though they have to send any one interested away.

-Matt

Vonage still have rates higher than Skype or any of Betamax services.

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