The Dealmaker blog reports that a federal judge on Friday granted Verizon’s request to enter an injunction prohibiting VOIP provider Vonage’s customer’s from making calls to standard phone lines. This comes on the heels of the damages award previously entered on behalf of Verizon. Vonage vows an appeal, but I question whether the company can survive that long, as its customers bail out for more predictably reliable services.
End of the Line for Vonage?
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Vonage is a one trick pony when it comes to the telecommunications industry landscape. The power is in the bundle (voice/data/video/wireless) and Vonage is going up with established companies with big bank accounts. They also chose the least profitable segment of that bundle to go after. Voice is trending to zero, and they offer only the cheap service. They are targeting the part of the bundle that its competitors will choose to offer for free as long as they get the other three.
I think Vonage have done an awesome job in acquiring the number of customers they have. Let’s face it the product is not that unique, but they’ve made it work, and created a benefit for millions of customers.
In light of recent developements the short term future is bleak, but I think their biggets threat comes from the likes of the new VoIP software applications like barablu http://blog.barablu.com/