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Monday, October 13, 
2:16 pm


[Posted on August 10, 2007 - 12:10 PM]

Vonage Holdings Inc. reported earnings Thursday, and the financial news was improved in terms of higher sales and lowered loss, but the business news was bad. Sure, Vonage had cut spending, but as a result, it also cuts its new subscribers, resulting in a loss of its top position in the voice-over-Internet-protocol, or VoIP, market. It's not terrible to be number two in a large and growing market, but Vonage's loss of share is overshadowed by its legal fight with Verizon Communications Inc. as well as the emergence of several new voice services that offer cheaper pricing and additional services. With SunRocket Inc., one of its largest competitors, defunct and new service providers nipping at its heels, now is no time for Vonage to give up market share. SunRocket's demise in July freed up 200,000 VoIP subscribers who will have to go someplace. Unfortunately, we'll have to wait until the next earnings call to see if they went to Vonage. —Stacey Higginbotham

See Aug. 10 story in TheDeal.com
See June 22 story in The Deal.com
See July 18 story in The Deal.com

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