May 26, 2006 4:00 AM PDT
Vonage future looks troubled
- Related Stories
-
Vonage shares slide on first day
May 24, 2006 -
Skype offers free calling to phones in U.S., Canada
May 15, 2006 -
Comcast steals telecom DSL customers
April 27, 2006
(continued from previous page)
But some analysts fear competition is only one of the many worries that Vonage faces. The decline in the company's stock price over the last couple of days could spur lawsuits.
"There is always a risk of a lawsuit whenever you put together a public offering," said Jocelyn Arel, a partner at Goodwin Procter, a law firm based in Boston. "Nine times out of 10 when you see a company come out and take a nose dive like Vonage did, you see plaintiffs circling to file lawsuits."
Vonage also may have damaged its relationship with some of its customers. About 13.5 percent of the shares offered during the IPO were sold to customers. Demand was strong for the shares before the IPO, as some customers may have had flashbacks of the IPO heydays of the late 1990s. But now that the stock has fallen so fast and so quickly, some of those customers could be displeased.
"If customers got hung out to dry, they're not going to stick around with the service," said Comack of Zachary Investment Research. "And I'm sure they'll be wanting to get their money back some way."
See more CNET content tagged:
Vonage Holdings Corp., IPO, IP telephony, Comcast Corp., Verizon Communications
30 comments
Join the conversation! Add your comment (Log in or register)
Now it seems that Vonage is suffering along with Tivo, while the Ipod seems unstoppable. I myself have an Ipod and am signing up with Vonage this summer. Sadly, I do not have Tivo. But it's a shame to see these giants (of name-brand) floundering in the technology whose name they become household references for.
I am not an apple fanboy... so let me say that now. But the Ipod is largely successful for its simplistic use with iTunes. It seems that for Tivo and Vonage, competitor's are catching up both in price and features and there is becoming no benefit from going with the most famous brand. Perhaps if there were features unique to each brand, it would cause a more stable environment for them.
On top of 2 months' of "nothing works" phone service and 2 months' of "good for nothing" service charge, I also paid for early disconnection fee and, most radiculous of all, the service Vonage never provides.
Like Vonage said on their advertisement, "People do stupid things." I feel I am one of them.
Take my advice. Don't use Vonage. It sucks.
Not only do I not get a refund, they tried to charge me more after no service. Right after their email notifying me they attmpted unsuccessfully to charge my card, they sent me a cancellation email right after.
So for right now it looks like I sm only stuck with the original $42.79 they charged me for the 'free' trial, plus whatever they are going to charge me for shipping back thei defective device and whatever it costs to cancel my credit card and get another one sent to me as I will not pay their current charge and will put in a statement with the BETTER BUSINESS BUREAU. I will also never make a purchase over the internet again.
Aloha
ShakaNui
customer of AT&T's CallVantave VoIP service for about 18
months. I slipped for short time, switching to Verizon's
VoiceWing and it was an unmitigated disaster. They couldn't get
the number switched over properly, and then there was a month
with a cascade of problems. I've had zero problems with
CallVantage. Early on I tried Lingo, but most of the time the
phone would never ring when a call arrived. They didn't have a
clue. Now they serve only a few area because they don't meet
the 911 requirements. It would be good if Vonage were able to
compete with the majors, but it looks now like management is
content to burn through cash and crash and burn.
Well when vonage came along I thought it was the greatest and most innovative product that ever existed. Boy was I wrong.
Yes, I could make phone calls- i did not even mind the static- the great part was i could set up a call on vonage and xfer it to my land line for better call quality. Even better was vonage would count the call as completed so I would get unlimited international calls for only 1 min charge.
But for all these great features I was paying a very high price: PEOPLE could not reach me- there would be messages that my number was not in service or the static on incoming forwarded calls was so bad I could not hear the people.
It took forever and a psc complaint to port my number back to verizon. Then it took another year and an email to the vonage CEO to get my number removed from their network. Vonage people kept getting a recording that i was out of service.
IF YOU need the phone to actually make a living you need another phone company. If you keep vonage they will bring you down as they go down!
The problems are many the solutions for vonage are few. VOIP works when your provider controls the last mile of the connection. VOIP does not work if the provider is trying to sell much more of it than they have backbone to support. They will not survive, this makes me happy.
Anyone who thinks that vonage is good or works well, works for vonage and is a plant or never uses the phone.
BYE BYE Vonage!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
They create an image of a company more interested in
blasting out noise than in providing a service.
Their problem is that the spending on advertising is out of control.
Watch out for one of the large mobile companies, such as Vodafone, coming along and scooping up all of the shares once that the price has dropped enough. This would give them a large population of users, a Brand name and an infrastructure at relatively low cost. It will help them deal with the fusion of roaming mobiles and home/office based Wifi. They could cut back on the advertising and waste the profligate Vonage executives.
It's clear that Vonage is spending all of its effort in acquiring new customers but little of it in being able to service them. The service I get (over a 1mpbs DSL connection) is the pits. Sometimes it will take 3-4 tries just to dial a call. Voicemail is often very slow or down. People I call will stop being able to hear me in mid-conversation. International calling is a total crapshoot. And customer service? Forget it. Just trying getting tech support when there's a voice mail problem.
I'm actively looking for alternatives now that the botched IPO is putting the company even more in trouble.
All the other VOIP love them because they are driving people to VOIP and then switching to these other providers because they cant hold on to their customers. Viatalk is absorbing all their business and is booming. They just had a deal for $199 for two years of unlimited service, but they have different promotions all the time.
I have audio of a CSR trying to lie to me regarding continuing service and no cancellation charges. Its hillarious, wish I could post it here.
have a great day,
Matt
billing, a total lack of technical support,etc. Since I have switched to this my digital voice,
I cannot say enough good things about it. They are polite and professional in every way.
Their technical support is top notch and they leave you with the feeling that they care
about their customers. I highly endorse them and recommend them to anyone that who is
currently using another provider or anyone that is contemplating trying V.O.I.P. I have
my entire home wired for V.O.I.P. with two lines.
These guys are the best.
<a class="jive-link-external" href="http://mydigitalvoice.com/clickthru.php?id=4052569008" target="_newWindow">http://mydigitalvoice.com/clickthru.php?id=4052569008</a>
second, vonnage lies in their tv commericals, why would you think that they would become honest and easy to deal with once you become a paying customer. and why would they make it easy to cancel, they make more money by making it difficult.
this is the problem with all of the "non-regulated" utilities. it costs them nothing to be bad at what they do.. cable industry comes to mind.
I may have to cancel my MasterCharge card and get a new one. These clowns need to be driven of the American Economic Landscape !!They are thieves !
So I changed my credit card number first and then called again last week to finally cancel the service.
This is a typical case for a class action law suit.
I hope some smart ass attorney reads these forums and collects a millionaire settlement with Vonage.
Regards,
Ronnie Shand
rashand@comcast.net