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	<title>Comments on: Is Vonage the new MCI?</title>
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		<title>By: Ryan G</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-758783</link>
		<dc:creator>Ryan G</dc:creator>
		<pubDate>Sun, 09 Dec 2007 03:13:01 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-758783</guid>
		<description>&lt;p&gt;Vonage alternative Unia Telecom is perfecting the art of service delivery. I think to generally avoid those providers that solely compete on price. I mean you get what you pay for. Most people complain about service but they forget the reason they signed up in the first place is because it was cheap. Cheap service = well..cheap service!
I did sign up with Unia Telecom Http://www.unaitelecom.com ...especially since they&#039;re a socially responsible operation with humanitarian support and they help keep jobs in the US. Maybe because I&#039;m an old geyser but that sure works for me!
Only issue with VOIP in general though you need a good net connection and somewhat know what you&#039;re doing.
Great company...will recommend Unia Telecom as a Vonage alternative.&lt;/p&gt;

&lt;p&gt;B&lt;/p&gt;
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		<content:encoded><![CDATA[<p>Vonage alternative Unia Telecom is perfecting the art of service delivery. I think to generally avoid those providers that solely compete on price. I mean you get what you pay for. Most people complain about service but they forget the reason they signed up in the first place is because it was cheap. Cheap service = well..cheap service!<br />
I did sign up with Unia Telecom Http://www.unaitelecom.com &#8230;especially since they&#8217;re a socially responsible operation with humanitarian support and they help keep jobs in the US. Maybe because I&#8217;m an old geyser but that sure works for me!<br />
Only issue with VOIP in general though you need a good net connection and somewhat know what you&#8217;re doing.<br />
Great company&#8230;will recommend Unia Telecom as a Vonage alternative.</p>
<p>B</p>
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		<title>By: Mary Contrary</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-464865</link>
		<dc:creator>Mary Contrary</dc:creator>
		<pubDate>Mon, 20 Aug 2007 14:39:08 +0000</pubDate>
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		<description>&lt;p&gt;I had Vonage..and it was like dealing with the mob.
First I bought the equipment...the service NEVER worked..I couldn&#039;t hear people or they could&#039;t hear them...miserable...in some slight of hand when I tried to cancell after 1 week they came up with some obscure notation that you have signed up for a year..and it will cost you $300.00 to discontinue.
I had it for a miserable year...and notified them via email I had now been with them an entire year and had gotten REAL phone service...they said NO..you have to call a certain number...after waiting a whole hour, they did not answer...I threatened the law via email and they aknowledged my cancellation..however...every month now for the past 2 months they withdraw money from my account and I have to call the one hour number to get my money back. THese people are unbelievable and I cannot believe they are allowed to do business here. I say stay away from them...they are unbelievble crooks. Anymore so many companies are involved in some really sleezy business practices...it&#039;s a full time job trying to keep from being ripped off.&lt;/p&gt;
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		<content:encoded><![CDATA[<p>I had Vonage..and it was like dealing with the mob.<br />
First I bought the equipment&#8230;the service NEVER worked..I couldn&#8217;t hear people or they could&#8217;t hear them&#8230;miserable&#8230;in some slight of hand when I tried to cancell after 1 week they came up with some obscure notation that you have signed up for a year..and it will cost you $300.00 to discontinue.<br />
I had it for a miserable year&#8230;and notified them via email I had now been with them an entire year and had gotten REAL phone service&#8230;they said NO..you have to call a certain number&#8230;after waiting a whole hour, they did not answer&#8230;I threatened the law via email and they aknowledged my cancellation..however&#8230;every month now for the past 2 months they withdraw money from my account and I have to call the one hour number to get my money back. THese people are unbelievable and I cannot believe they are allowed to do business here. I say stay away from them&#8230;they are unbelievble crooks. Anymore so many companies are involved in some really sleezy business practices&#8230;it&#8217;s a full time job trying to keep from being ripped off.</p>
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		<title>By: Cheap airline tickets cheap flights guide soma.</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53233</link>
		<dc:creator>Cheap airline tickets cheap flights guide soma.</dc:creator>
		<pubDate>Sun, 04 Mar 2007 04:28:11 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53233</guid>
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		<content:encoded><![CDATA[<p><strong>Cheap air flights cheap last minute flight soma&#8230;.</strong></p>
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		<title>By: Fire burns</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53231</link>
		<dc:creator>Fire burns</dc:creator>
		<pubDate>Mon, 04 Sep 2006 01:13:09 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53231</guid>
		<description>&lt;p&gt;Forecast VG
YEAR 2008 2 Quarter results
VG EPS (+ first time)
$1.25 - $1.50 ($4.00/ year)
Share quotes at 12-15 PE at $60
YEAR 2010
VG EPS about $6-7/year&#8230;20 PE share quotes at $120 &#8230;&lt;/p&gt;

&lt;p&gt;enjoy&#8230;&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>Forecast VG<br />
YEAR 2008 2 Quarter results<br />
VG EPS (+ first time)<br />
$1.25 &#8211; $1.50 ($4.00/ year)<br />
Share quotes at 12-15 PE at $60<br />
YEAR 2010<br />
VG EPS about $6-7/year&#8230;20 PE share quotes at $120 &#8230;</p>
<p>enjoy&#8230;</p>
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		<title>By: Todd Blanchard</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53229</link>
		<dc:creator>Todd Blanchard</dc:creator>
		<pubDate>Tue, 15 Aug 2006 19:11:39 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53229</guid>
		<description>&lt;p&gt;&lt;a href=&quot;http://www.blackbagops.net/?p=63&quot; rel=&quot;nofollow&quot;&gt;Vonage&lt;/a&gt; is the roach motel of &lt;a href=&quot;http://digg.com/tech_news/Vonage_Rips_Off_Customers_Who_Cancel&quot; rel=&quot;nofollow&quot;&gt;phone companies&lt;/a&gt;. They have sales people working around the clock, but intentionally don’t put their customer service extension in the menu on their phone system. This is dishonest and I decide not to do further business with them.&lt;/p&gt;

&lt;p&gt;Unfortunately, they won’t or can’t cancel the number transfer. I contact Qwest to see if they can stop it and at first they think so, but eventually they say no, but let it go through and in a week they can request it back. So we do. This leaves me without the ability to receive calls for over 3 weeks. I tell the reps at Vonage that I want my number transfer cancelled and plan to cancel service - they warn me not to cancel until the number safely returns to Qwest. Qwest gives me the same advice.
It takes 20 days for a number to transfer - so this entire fiasco is over 40 days long. Cleverly, Vonage provides a 30 day money back guarantee. Criminal.&lt;/p&gt;

&lt;p&gt;I learn this last fact when phoning to cancel my Vonage “service” (which never worked) and am told that 1) I’m over the 30 days to I have to pay $30 in cancellation fees and 2) I am charged an additional $50 for hardware that I bought up front for $89 in the first place and that failed within days of power up and 3) am told that they won’t even replace the dead hardware (although the rather smug-bitchy rep in cancellations is pleased to tell me that “if you had stayed we’d replace it but since you’re cancelling you’re out of luck”).&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p><a href="http://www.blackbagops.net/?p=63" rel="nofollow">Vonage</a> is the roach motel of <a href="http://digg.com/tech_news/Vonage_Rips_Off_Customers_Who_Cancel" rel="nofollow">phone companies</a>. They have sales people working around the clock, but intentionally don’t put their customer service extension in the menu on their phone system. This is dishonest and I decide not to do further business with them.</p>
<p>Unfortunately, they won’t or can’t cancel the number transfer. I contact Qwest to see if they can stop it and at first they think so, but eventually they say no, but let it go through and in a week they can request it back. So we do. This leaves me without the ability to receive calls for over 3 weeks. I tell the reps at Vonage that I want my number transfer cancelled and plan to cancel service &#8211; they warn me not to cancel until the number safely returns to Qwest. Qwest gives me the same advice.<br />
It takes 20 days for a number to transfer &#8211; so this entire fiasco is over 40 days long. Cleverly, Vonage provides a 30 day money back guarantee. Criminal.</p>
<p>I learn this last fact when phoning to cancel my Vonage “service” (which never worked) and am told that 1) I’m over the 30 days to I have to pay $30 in cancellation fees and 2) I am charged an additional $50 for hardware that I bought up front for $89 in the first place and that failed within days of power up and 3) am told that they won’t even replace the dead hardware (although the rather smug-bitchy rep in cancellations is pleased to tell me that “if you had stayed we’d replace it but since you’re cancelling you’re out of luck”).</p>
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		<title>By: Adam</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53227</link>
		<dc:creator>Adam</dc:creator>
		<pubDate>Mon, 12 Jun 2006 17:58:10 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53227</guid>
		<description>&lt;p&gt;I think you give the concept of Vonage to much credit.  I have respect for Jeff Citron, and what he&#039;s achieved, but the only real difference that seperates Vonage from the Packet8&#039;s and Broadvoice&#039;s of the world is that they didn&#039;t pump endless money on tv commericals as part of a losing money business model for customer acquisition.  I think Packet8 if anyone, deserves alot more credit than it gets since it&#039;s been around before Vonage, was the first true VOIP independant to launch an IPO, and it&#039;s numbers are alot less than Vonage, only because it&#039;s tried to keep costs for customer acquisition at reasonable numbers to afford R&amp;D and call center support.  Also, their Virtual Office product is unique in this space (hosted pbx) from a VoIP Independant.  Will Vonage eventually play catch up and start making some money?  Sure&#8230; If they keep customer acquisition costs in the $200 - $250 range, down from the redicoulos $600 it once was.  When they get big enough, I&#039;m sure someone might go ahead and aquire them, or they will have a slim chance of truly emergining as the new telephone company.  But other companies can deliver the same services, same or better voice quality, and cheaper.&lt;/p&gt;

&lt;p&gt;I&#039;ll give Vonage some credit, but to call Jeff a revolutionary entreprenaur based on the creation of Vonage is way to much.&lt;/p&gt;

&lt;p&gt;Adam&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>I think you give the concept of Vonage to much credit.  I have respect for Jeff Citron, and what he&#8217;s achieved, but the only real difference that seperates Vonage from the Packet8&#8217;s and Broadvoice&#8217;s of the world is that they didn&#8217;t pump endless money on tv commericals as part of a losing money business model for customer acquisition.  I think Packet8 if anyone, deserves alot more credit than it gets since it&#8217;s been around before Vonage, was the first true VOIP independant to launch an IPO, and it&#8217;s numbers are alot less than Vonage, only because it&#8217;s tried to keep costs for customer acquisition at reasonable numbers to afford R&amp;D and call center support.  Also, their Virtual Office product is unique in this space (hosted pbx) from a VoIP Independant.  Will Vonage eventually play catch up and start making some money?  Sure&#8230; If they keep customer acquisition costs in the $200 &#8211; $250 range, down from the redicoulos $600 it once was.  When they get big enough, I&#8217;m sure someone might go ahead and aquire them, or they will have a slim chance of truly emergining as the new telephone company.  But other companies can deliver the same services, same or better voice quality, and cheaper.</p>
<p>I&#8217;ll give Vonage some credit, but to call Jeff a revolutionary entreprenaur based on the creation of Vonage is way to much.</p>
<p>Adam</p>
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		<title>By: yachtman</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53225</link>
		<dc:creator>yachtman</dc:creator>
		<pubDate>Mon, 12 Jun 2006 09:15:26 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53225</guid>
		<description>&lt;p&gt;To all of those saying Vonage quality stinks, you need to upgrade your dialup connection or whatever other bad provider you have now. &lt;/p&gt;

&lt;p&gt;I have been Vonage for 2 years, have had no technical problems, other than the infrequent time my connnection went down, and the voice quality is unidentifiable as being VOIP.&lt;/p&gt;

&lt;p&gt;And best of all, I am in Singapore! Let me say that again--SINGAPORE.  All for $14.95/month for 500 minutes and I have a U.S. number. Give me a call and you&#039;ll think I am sitting in NH. Don&#039;t ask me to call back--it&#039;ll be in the middle of your night. Now try that with your local Verizon service&#8230;&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>To all of those saying Vonage quality stinks, you need to upgrade your dialup connection or whatever other bad provider you have now. </p>
<p>I have been Vonage for 2 years, have had no technical problems, other than the infrequent time my connnection went down, and the voice quality is unidentifiable as being VOIP.</p>
<p>And best of all, I am in Singapore! Let me say that again&#8211;SINGAPORE.  All for $14.95/month for 500 minutes and I have a U.S. number. Give me a call and you&#8217;ll think I am sitting in NH. Don&#8217;t ask me to call back&#8211;it&#8217;ll be in the middle of your night. Now try that with your local Verizon service&#8230;</p>
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		<title>By: tom</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53223</link>
		<dc:creator>tom</dc:creator>
		<pubDate>Mon, 12 Jun 2006 05:22:58 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53223</guid>
		<description>&lt;p&gt;Having been a Vonage customer for a couple of years (packet8 before Vonage), I can say the service works fine, and I didn&#039;t buy any IPO shares.&lt;/p&gt;

&lt;p&gt;Two issues with Vonage and VOIP plays in general:&lt;/p&gt;

&lt;p&gt;1)  Landline voice is going the way of Long Distance: prices will asymptotically approach 0, and the market will be highly competitive all the way down.&lt;/p&gt;

&lt;p&gt;2)  The big carriers will compete, and cable is already adding more customers per month than Vonage.  Vonage will end up like TIVO - having built a new market, but having captured little of the value created.&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>Having been a Vonage customer for a couple of years (packet8 before Vonage), I can say the service works fine, and I didn&#8217;t buy any IPO shares.</p>
<p>Two issues with Vonage and VOIP plays in general:</p>
<p>1)  Landline voice is going the way of Long Distance: prices will asymptotically approach 0, and the market will be highly competitive all the way down.</p>
<p>2)  The big carriers will compete, and cable is already adding more customers per month than Vonage.  Vonage will end up like TIVO &#8211; having built a new market, but having captured little of the value created.</p>
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		<title>By: Ridolph</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53222</link>
		<dc:creator>Ridolph</dc:creator>
		<pubDate>Sun, 11 Jun 2006 21:30:11 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53222</guid>
		<description>&lt;p&gt;As VOIP services go, Vonage is mostly behind. When I searched out a replacement I found that there were quite a few that had more features, better manageability, and equivalent call quality. &lt;/p&gt;

&lt;p&gt;The point is not that Vonage is not better than copper, the point is that they really own nothing. When the cable companies decide to seriously compete and take a loss on the service for 2-3 years to capture marketshare (as Vonage is doing itself at the moment), Vonage is dead.&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>As VOIP services go, Vonage is mostly behind. When I searched out a replacement I found that there were quite a few that had more features, better manageability, and equivalent call quality. </p>
<p>The point is not that Vonage is not better than copper, the point is that they really own nothing. When the cable companies decide to seriously compete and take a loss on the service for 2-3 years to capture marketshare (as Vonage is doing itself at the moment), Vonage is dead.</p>
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		<title>By: Incognito</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53221</link>
		<dc:creator>Incognito</dc:creator>
		<pubDate>Sun, 11 Jun 2006 16:42:11 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53221</guid>
		<description>&lt;p&gt;After the bad service that I have received from Vonage I have switched to another VOIP provider.
http://www.undesignatedblog.com/archives/000389.html&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>After the bad service that I have received from Vonage I have switched to another VOIP provider.<br />
<a href="http://www.undesignatedblog.com/archives/000389.html" rel="nofollow">http://www.undesignatedblog.com/archives/000389.html</a></p>
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		<title>By: Crude Technologies</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53220</link>
		<dc:creator>Crude Technologies</dc:creator>
		<pubDate>Sun, 11 Jun 2006 04:39:48 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53220</guid>
		<description>&lt;p&gt;Our office has been using Vonages in each office and among office for a couple years.  After buying one, each additional one costs less.  I  have not seen any cableco offerings to compare to such low pricing with so many features.  We picked up additional plans for our remote offices, and interoffice calls are free.  In each location we disconnect the telco at the wiring panel, and jumper the Vonages in instead, thus wiring the premises with multi-lines just like copper would have supplied.  Voice Quality is fine, though when I upgraded my home cablemodem to test their VOIP, the Vonage on the same cablemodem experienced packet loss problems more frequently.&lt;/p&gt;

&lt;p&gt;I can use any of these Vonages anywhere I can get a connection, not just on my local cableco. But more importantly, the management tools for the multiple phone and multiple lines with their call ring groups and follow-me forwarding and ring-everywhere capabilities simply blow the other national VOIP services out of the water.  &lt;/p&gt;

&lt;p&gt;If Vonage would get this message out there, the public would realize there is no useful and convenient competitor.  Say, free installer to activate the house wiring with Vonage.  If every jack in the house is on Vonage, instead of just one cordless handset, people will realize it&#039;s not one o&#039; them Innuhnet thangs.&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>Our office has been using Vonages in each office and among office for a couple years.  After buying one, each additional one costs less.  I  have not seen any cableco offerings to compare to such low pricing with so many features.  We picked up additional plans for our remote offices, and interoffice calls are free.  In each location we disconnect the telco at the wiring panel, and jumper the Vonages in instead, thus wiring the premises with multi-lines just like copper would have supplied.  Voice Quality is fine, though when I upgraded my home cablemodem to test their VOIP, the Vonage on the same cablemodem experienced packet loss problems more frequently.</p>
<p>I can use any of these Vonages anywhere I can get a connection, not just on my local cableco. But more importantly, the management tools for the multiple phone and multiple lines with their call ring groups and follow-me forwarding and ring-everywhere capabilities simply blow the other national VOIP services out of the water.  </p>
<p>If Vonage would get this message out there, the public would realize there is no useful and convenient competitor.  Say, free installer to activate the house wiring with Vonage.  If every jack in the house is on Vonage, instead of just one cordless handset, people will realize it&#8217;s not one o&#8217; them Innuhnet thangs.</p>
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		<title>By: Ridolph</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53219</link>
		<dc:creator>Ridolph</dc:creator>
		<pubDate>Sun, 11 Jun 2006 03:34:29 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53219</guid>
		<description>&lt;p&gt;The problem with the MCI comparison is that MCI (and Sprint) actually had to spend money on infrastructure to provide their service. Whatever the regulatory environment, there was a serious buy-in to provide their service. The buy-in for VOIP is very, very low. That&#039;s why the company is essentially worth nothing. It&#039;s a Brand, pure and simple, and not much of one.&lt;/p&gt;

&lt;p&gt;When it works, Vonage&#039;s call quality is fine. But if you need support, just forget about it. That&#039;s how they lost me. I&#039;m paying substantially less for Broadvoice and quality is just as good.&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>The problem with the MCI comparison is that MCI (and Sprint) actually had to spend money on infrastructure to provide their service. Whatever the regulatory environment, there was a serious buy-in to provide their service. The buy-in for VOIP is very, very low. That&#8217;s why the company is essentially worth nothing. It&#8217;s a Brand, pure and simple, and not much of one.</p>
<p>When it works, Vonage&#8217;s call quality is fine. But if you need support, just forget about it. That&#8217;s how they lost me. I&#8217;m paying substantially less for Broadvoice and quality is just as good.</p>
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		<title>By: Billa</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53217</link>
		<dc:creator>Billa</dc:creator>
		<pubDate>Sat, 10 Jun 2006 22:37:23 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53217</guid>
		<description>&lt;p&gt;I think that everyone here, including Mr. Beringer, might be forgetting what made Microwave Communications Incorporated a real competitor to ATT. They owned a layer 1 infrastructure that was a completely separate way for customers to transmit their traffic. Vonage owns nothing except the customer, so they will always be beholden to the companies that own the physical infrastructure that connects to the customer&#039;s home or business. Anyone with a few million dollars can start a Vonage competitor tomorrow and offer the same services.
Ed Whitacre likes to say &quot;We own the wires&quot; and he is right. If someone really wants to compete with AT&amp;T/Verizon, they need to build their own network that connects to the customer&#039;s premise. There is nothing keeping anyone from doing this except the huge cost of building such a network.  Think WiMax or something comparable.&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>I think that everyone here, including Mr. Beringer, might be forgetting what made Microwave Communications Incorporated a real competitor to ATT. They owned a layer 1 infrastructure that was a completely separate way for customers to transmit their traffic. Vonage owns nothing except the customer, so they will always be beholden to the companies that own the physical infrastructure that connects to the customer&#8217;s home or business. Anyone with a few million dollars can start a Vonage competitor tomorrow and offer the same services.<br />
Ed Whitacre likes to say &#8220;We own the wires&#8221; and he is right. If someone really wants to compete with AT&amp;T/Verizon, they need to build their own network that connects to the customer&#8217;s premise. There is nothing keeping anyone from doing this except the huge cost of building such a network.  Think WiMax or something comparable.</p>
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		<title>By: TheShadow</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53215</link>
		<dc:creator>TheShadow</dc:creator>
		<pubDate>Sat, 10 Jun 2006 19:25:23 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53215</guid>
		<description>&lt;p&gt;Om, you have got to be kidding right?&lt;/p&gt;

&lt;p&gt;Have you actually tried using Vonage?  I mean really&#8230;before you post some B.S. opinion - you might at least TRY the service first.&lt;/p&gt;

&lt;p&gt;Or at least TRY calling their customer service number&#8230;&lt;/p&gt;

&lt;p&gt;Before you can have a comparison to a company like MCI - you have to achieve a comparable level of SERVICE and QUALITY.&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>Om, you have got to be kidding right?</p>
<p>Have you actually tried using Vonage?  I mean really&#8230;before you post some B.S. opinion &#8211; you might at least TRY the service first.</p>
<p>Or at least TRY calling their customer service number&#8230;</p>
<p>Before you can have a comparison to a company like MCI &#8211; you have to achieve a comparable level of SERVICE and QUALITY.</p>
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		<title>By: Chris</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53213</link>
		<dc:creator>Chris</dc:creator>
		<pubDate>Fri, 09 Jun 2006 17:58:08 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53213</guid>
		<description>&lt;p&gt;While the merits of Jeff Citron&#039;s track record for innovation and disruption cannot be argued, this article is very hard to agree with. The early MCI was a company of attorneys, not product engineers or marketers, who created a market for themselves via litigation. This ultimately led to the 1984 consent decree which allowed a judge to create false markets by regulation. Those artificial markets are being reassembled as we speak, and a new form of intermodal competition across different facilities is now doing what the 1984 and 1996 acts were intended to do. MCI&#039;s legacy is over 20 years of regulatory failures. Citron, on the other hand, introduced us to not only mainstream Internet based phone service, but electronic clearnghouses that disrupted the floor specialists, as well as online stock trading for retail consumers. Citron is actually mentioned in Andy Kessler&#039;s book &quot;How We Got Here&quot; for his innovative use of technology in the financial industry, McGowan was no technical innovator or market disruptor. He simply used litigation to offer consumers the same product that AT&amp;T offered. If Vonage ever truly threatens telco&#039;s, all they have to do is drop the price. Cable companies are the biggest threat to telcos, and to Vonage also. Vonage is a national product and if you measure their performance against the cable companies as a collective whole representing the same footprint, Vonage is being creamed. Vonage made a mistake when they arrived at a fork in the road and decided to use Internet technology to be a telco and not an open Internet communications company like Skype that can create true market disruption.&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>While the merits of Jeff Citron&#8217;s track record for innovation and disruption cannot be argued, this article is very hard to agree with. The early MCI was a company of attorneys, not product engineers or marketers, who created a market for themselves via litigation. This ultimately led to the 1984 consent decree which allowed a judge to create false markets by regulation. Those artificial markets are being reassembled as we speak, and a new form of intermodal competition across different facilities is now doing what the 1984 and 1996 acts were intended to do. MCI&#8217;s legacy is over 20 years of regulatory failures. Citron, on the other hand, introduced us to not only mainstream Internet based phone service, but electronic clearnghouses that disrupted the floor specialists, as well as online stock trading for retail consumers. Citron is actually mentioned in Andy Kessler&#8217;s book &#8220;How We Got Here&#8221; for his innovative use of technology in the financial industry, McGowan was no technical innovator or market disruptor. He simply used litigation to offer consumers the same product that AT&amp;T offered. If Vonage ever truly threatens telco&#8217;s, all they have to do is drop the price. Cable companies are the biggest threat to telcos, and to Vonage also. Vonage is a national product and if you measure their performance against the cable companies as a collective whole representing the same footprint, Vonage is being creamed. Vonage made a mistake when they arrived at a fork in the road and decided to use Internet technology to be a telco and not an open Internet communications company like Skype that can create true market disruption.</p>
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		<title>By: Brian Horey</title>
		<link>http://gigaom.com/2006/06/09/is-vonage-the-new-mci/#comment-53212</link>
		<dc:creator>Brian Horey</dc:creator>
		<pubDate>Fri, 09 Jun 2006 15:13:32 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.wordpress.com/2006/06/09/is-vonage-the-new-mci/#comment-53212</guid>
		<description>&lt;p&gt;Berninger&#039;s prior affiliation with Vonage may be clouding his judgement about the company.  The regulatory environment that Vonage faced was nothing like the one that MCI faced (a half century of government sanctioned monopoly with no competitive precedents and a hostile regulatory environment vs a significantly deregulated business with regulators sympathetic to VOIP as a competitive prod).  Vonage&#039;s aggressive marketing of VOIP probably hastened a competitive response by a few quarters, but they weren&#039;t the only firm using VOIP as an alternative voice platform.&lt;/p&gt;

&lt;p&gt;As for how the LECs are competing now, even the lead-footed mastodon Verizon has a VOIP plan at the same price point as Vonage with no sign up fee (though you can call a few countries in Europe on the Vonage plan that aren&#039;t part of the Verizon offering).  It is a recent conversion to aggressive pricing, but one senses that Verizon has grasped that the POTS value proposition doesn&#039;t cut it anymore.&lt;/p&gt;

&lt;p&gt;Writing off Skype and GYM as competition is naive.  Yes, they are not perfect substitutes for Vonage, but to say that they do not represent competition is laughable.  Vonage is not a perfect substitute for a POTS line, nor is a cell phone a perfect substitute for a POTS line, yet both have had a dramatic impact on access line counts at the LECs.  Most adults in their 20s have decided that cell phones are &quot;good enough&quot; and never get a landline and many consumers will find Skype &quot;good enough&quot; and pass up Vonage&#039;s more expensive solution.&lt;/p&gt;

&lt;p&gt;With regard to the difficulty of porting numbers from the LECs, based on what I have read around the web, Vonage is starting to resemble a roach motel for phone numbers itself.  They need to think hard before they pick up that particular rock and start throwing.&lt;/p&gt;

&lt;p&gt;Finally Vonage got the IPO it deserved.  The company knew it would have difficulty selling the stock to institutions due to the competitive threats it faced in the business.  It picked underwriters with big retail customer bases, shamelessly flogged the offering to its customers - most of whom wouldn&#039;t know any better, and upped the size of the deal so as to raise as much money as possible.  If Vonage was really concerned about the aftermarket performance of the IPO, they would have cut the size of the deal and priced it much lower.  This was a &quot;do or die&quot; deal for Vonage - their marketing programs would soon have come to a halt without it.  Nothing in their behavior suggests they had any concern about where the stock traded post deal.&lt;/p&gt;</description>
		<content:encoded><![CDATA[<p>Berninger&#8217;s prior affiliation with Vonage may be clouding his judgement about the company.  The regulatory environment that Vonage faced was nothing like the one that MCI faced (a half century of government sanctioned monopoly with no competitive precedents and a hostile regulatory environment vs a significantly deregulated business with regulators sympathetic to VOIP as a competitive prod).  Vonage&#8217;s aggressive marketing of VOIP probably hastened a competitive response by a few quarters, but they weren&#8217;t the only firm using VOIP as an alternative voice platform.</p>
<p>As for how the LECs are competing now, even the lead-footed mastodon Verizon has a VOIP plan at the same price point as Vonage with no sign up fee (though you can call a few countries in Europe on the Vonage plan that aren&#8217;t part of the Verizon offering).  It is a recent conversion to aggressive pricing, but one senses that Verizon has grasped that the POTS value proposition doesn&#8217;t cut it anymore.</p>
<p>Writing off Skype and GYM as competition is naive.  Yes, they are not perfect substitutes for Vonage, but to say that they do not represent competition is laughable.  Vonage is not a perfect substitute for a POTS line, nor is a cell phone a perfect substitute for a POTS line, yet both have had a dramatic impact on access line counts at the LECs.  Most adults in their 20s have decided that cell phones are &#8220;good enough&#8221; and never get a landline and many consumers will find Skype &#8220;good enough&#8221; and pass up Vonage&#8217;s more expensive solution.</p>
<p>With regard to the difficulty of porting numbers from the LECs, based on what I have read around the web, Vonage is starting to resemble a roach motel for phone numbers itself.  They need to think hard before they pick up that particular rock and start throwing.</p>
<p>Finally Vonage got the IPO it deserved.  The company knew it would have difficulty selling the stock to institutions due to the competitive threats it faced in the business.  It picked underwriters with big retail customer bases, shamelessly flogged the offering to its customers &#8211; most of whom wouldn&#8217;t know any better, and upped the size of the deal so as to raise as much money as possible.  If Vonage was really concerned about the aftermarket performance of the IPO, they would have cut the size of the deal and priced it much lower.  This was a &#8220;do or die&#8221; deal for Vonage &#8211; their marketing programs would soon have come to a halt without it.  Nothing in their behavior suggests they had any concern about where the stock traded post deal.</p>
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