Tuesday, September 05, 2006
Jon Arnold compares Vonage and Packet8 numbers: "I think the big issue and difference facing Vonage and Telio is the simple fact that the U.S. market is much more competitive, and as the MSOs start to dominate, it becomes harder for any VoIP pureplay to make a go of things. This is underscored by Vonage’s closest pureplay rival, Packet 8. They have been public for years, and have little to show for it. Their Q2 results tell a similar story to Vonage, but not quite as good. Packet 8’s subscriber growth is positive, and they hit 151,000 lines in Q2 – 1/12th of Vonage. However, they report lower ARPU from last year, and churn is way up, from 2.6% to 4.1%. Q2 showed a modest operating loss of $6 million, but the scary number is the accumulated deficit of $201 million. Yeow. And the future doesn’t look much better – “we will continue to incur operating losses for the foreseeable future, and such losses may be substantial”."