After pondering over the announcement a little bit more, I have come to these conclusions:
* By its presence in Circuit City, Vonage is now a mass market product, not some tech curiosity. With 300,000 new customers from the deal likely in the first year, Vonage could have over a million customers before the first snow falls in New Jersey.
* Historically when tech services such as satellite, cellular phone and broadband have been offered at main stream retail stores, the sales rocket, if not profits. This is clearly bad news for Bells, who are now going to have to deal with increased exposure. Line loss to VOIP may soon hit an inflection point.
* This will turn on the heat on the VOIP wannabes – RBOCs, IXCs, Cables and even Vonage rivals. I would expect Packet 8 to team up with Best Buy or someone like that.
* Expect Time Warner, Cox and Cablevision to get even more aggressive. Screw Comcast – they are f**king around with rodents and will suffer and miss out on a big opportunity. Last quarter, Cablevision added 25,000 pure VOIP customers.
* Lastly, big win for Motorola which is now going to see a lot of its ATA adapters ship and sell. Bad luck for Cisco. And as a parting shot, I expect serious red ink at Vonage.