Vonage Death Watch Starts at Fierce
Source: andyabramson.blogs.com
Doug Mohney has penned an excellent piece about what will hasten the death spiral of Vonage. His well timed editorial, based largely around the announcement by Verizon to rollout a real VoIP service called Digital Voice (wow what a creative brand name) is well in keeping with my rationale as to why the consumer VoIP pioneer is on the ropes.
Mohney rightfully points out that triple and quad play plans from both the telcos (AT&T, Verizon and Qwest) as well as the efforts from the cable MSO’s will put Vonage in a stranglehold as the customers begin to say, "oh, heck, the pricing is better to switch," or as the incentives to switch over become far too attractive.
Vonage has no play at this point, unless they move into some sort of wireless offering to compliment their land line. Though I’ve heard rumors that they are considering it, given the economic climate, their lack of credit worthiness and the debt already over their head, I’d say "that dog don’t hunt" either.
