Wednesday, March 14, 2007

Vonage Fights Back - By Losing More $

After losing its Patent battle to VZ, Vonage lowers LD to 8 countries to a Penny. The court battle cost Vonage $58M + 5.5% of future revenues [Telecomweb]. "Under the jury findings and based on Vonage's most recent financial report, Verizon would get about $10 million per quarter in royalties. That, though, is based on Vonage's current subscriber base, on which it is operating deep in the red. Verizon would stand to reap far more if Vonage ever becomes a profitable company." Shares are trading below $4 (from an IPO of $17). Vonage also faces possible shut down as a result of the 7 patents being infringed and the injunction that VZ is looking for.

I just don't see how Vonage is the only VOIP Provider infringing. What about at&t CallVantage? How are they any different? Or SunRocket? Rumor has it that most of Vonage's subscriber base comes from VZ -- mainly becuz VZ is one of the worst phone companies in the world. Vindictive too.

It appears that one patent is VOIP over wi-fi which will mean trouble for the Vonage over ELN Muni. [Source]. Pulvermedia will be holding a webinar to discuss the implications of this patent fight (see here).

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