Vonage Shut Down

There are rumors flying that Vonage will be shut down. Unfortunately as this company is a poster child for VoIP, what happens to it could have negative impact on the industry at large. This is too bad. There are a number of companies in IP communalizations doing a great job and making great money.
For example Acme Packet is a publicly traded company who is doing well.
One thing worth pointing out is Vonage focused too much and still focuses too much on marketing. I can’t believe I of all people is saying this. But there have been times I picked up five magazines for a long flight and saw Vonage ads in each magazine. Now obviously this is too much advertising.
Still, it is easy for me to criticize the company in hindsight. The problem is the profitably numbers were terrible because of this massive spend level.
The point is, Vonage did great things for the VoIP industry and it seems it may do as much negative for the market as it has done positive. Actually, the blame here should rest more on Verizon than Vonage.
One other point; the PR team at Vonage (or at least one person at the company I have referenced in the past) has been very unresponsive to most editors and bloggers I have spoken with.
For all the money the company has spent on marketing, its PR efforts have been fairly negative according to most people in the industry I know. In fact I can’t name a company with less responsive PR. Again, this is not across the board.
Why does this matter? Because so many of the people who feel as if they have been wronged by the company’s PR department (bloggers, reporters, etc) who seem to have a vendetta against the company.
This is too bad and to be honest, although writers shouldn’t have egos, in the real world everyone has one (including me).
Let’s just hope all this bad will doesn’t put the company in the grave before its time.
I truly hope Vonage makes it out of this mess soon and finds a way to undo the damage Verizon has done.

  • Vic
    March 24, 2007 at 12:54 pm

    Yah, I really think Verizon is the main one to blame. BILLIONS in awarded in the settlement, even if Vonage spent their money right, the lawsuit’s settlement is enough to shut a lot of major corporations down regardless. Now we have to see who takes Vonage’s place, if indeed it gets shut down, and I will bet that there will be a lawsuit slapped on that company, too.

  • Renee
    August 17, 2007 at 8:56 pm

    I presently have Verizon as my phone/DSL provider. I called today to see if I could just keep the DSL service and turn off the land line. The representative which was a man asked me why, and I responded that I was going to switch to Vontage. He immediately got an attitude and started talking to me a little ruff. I was really confused and fot a little upset, but I still remained calm.He then preceeded to tell me “for non customers we charge them more for DSL service” well that was the the case last year when my sister got DSL service fot the same price that I did and she had a different telephone service provider. I said well maybe I will just cancel my service altogether, he said do what you feel. Well! lol talking about good customer service yeshhhh.

  • john
    November 13, 2007 at 2:28 am

    Its unfortunate that Vonage is shutting down. I think Verizons lawsuit has some things to do with it. I hope there will be more VOIP providers on the way. http://ds3providers.com

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