Comments on: Vonage Wireless or a desperate move? http://gigaom.com/2007/02/20/vonage-wireless/ Tracking the Internet Evolution Sat, 11 Oct 2008 23:33:32 +0000 http://wordpress.org/?v=MU hourly 1 By: Om Malik http://gigaom.com/2007/02/20/vonage-wireless/#comment-88259 Om Malik Mon, 26 Feb 2007 06:55:44 +0000 http://gigaom.wordpress.com/2007/02/20/vonage-wireless/#comment-88259 <p>Michael,</p> <p>the interesting question is what do they offer in the long term.</p> <p>I think Vonage needs to figure that out: the cheap voice game isn't going to work, but it is an attractive hook to get customers. they need to figure out a way to upsell the customers.</p> <p>i have some ideas but not sure if i can share them right now, and will post later when i have totally thought it through and done some reporting.</p> <p>who could buy them? I think that is anyone's guess. I think Vonage itself should just start gobbling up smaller players, and bulk up through acquisition, instead of blowing millions on advertising campaigns.</p> <p>they can lower their costs and get some kind of scale going for them. at that point an alternative carrier like embarq might want to pick them up as a way to get into the bell territories.</p> Michael,

the interesting question is what do they offer in the long term.

I think Vonage needs to figure that out: the cheap voice game isn’t going to work, but it is an attractive hook to get customers. they need to figure out a way to upsell the customers.

i have some ideas but not sure if i can share them right now, and will post later when i have totally thought it through and done some reporting.

who could buy them? I think that is anyone’s guess. I think Vonage itself should just start gobbling up smaller players, and bulk up through acquisition, instead of blowing millions on advertising campaigns.

they can lower their costs and get some kind of scale going for them. at that point an alternative carrier like embarq might want to pick them up as a way to get into the bell territories.

]]> By: michael http://gigaom.com/2007/02/20/vonage-wireless/#comment-88258 michael Sun, 25 Feb 2007 12:01:20 +0000 http://gigaom.wordpress.com/2007/02/20/vonage-wireless/#comment-88258 <p>Or you could just ignore the questions, as per usual....</p> Or you could just ignore the questions, as per usual….

]]> By: Jesse Kopelman http://gigaom.com/2007/02/20/vonage-wireless/#comment-88257 Jesse Kopelman Thu, 22 Feb 2007 04:33:02 +0000 http://gigaom.wordpress.com/2007/02/20/vonage-wireless/#comment-88257 <p>Just as Vonage is getting whacked by Cableco VoIP this year, they will get whacked by Cableco MVNO next year or the year after. What is it about Citron that he loves getting into these plays that have such a short lifespan? If this were a small company, I wouldn't question it, but these guys are too big and owe too much money to play such games.</p> Just as Vonage is getting whacked by Cableco VoIP this year, they will get whacked by Cableco MVNO next year or the year after. What is it about Citron that he loves getting into these plays that have such a short lifespan? If this were a small company, I wouldn’t question it, but these guys are too big and owe too much money to play such games.

]]> By: Peter Radizeski http://gigaom.com/2007/02/20/vonage-wireless/#comment-88254 Peter Radizeski Wed, 21 Feb 2007 17:09:04 +0000 http://gigaom.wordpress.com/2007/02/20/vonage-wireless/#comment-88254 <p>MVNO is a tough road. ESPN couldn't make it. Helio with a 100k lines and Amped with 30k lines are considered big. No a big market. It would be a great for both ELN and Vonage of that phone was a Helio phone. "Marketing costs were up 50% this quarter to $96M - just 53% of revenue." Sub acquisition cost is over $300 (and I would argue even higher than $400). How do you get that back with an ARPU of $27????</p> MVNO is a tough road. ESPN couldn’t make it. Helio with a 100k lines and Amped with 30k lines are considered big. No a big market.
It would be a great for both ELN and Vonage of that phone was a Helio phone.
“Marketing costs were up 50% this quarter to $96M - just 53% of revenue.” Sub acquisition cost is over $300 (and I would argue even higher than $400). How do you get that back with an ARPU of $27????

]]> By: Markus Goebel http://gigaom.com/2007/02/20/vonage-wireless/#comment-88256 Markus Goebel Wed, 21 Feb 2007 06:37:01 +0000 http://gigaom.wordpress.com/2007/02/20/vonage-wireless/#comment-88256 <p>Maybe you are not right, Om.</p> <p>I think there is still enough space for a great cellular/Wifi MVNO. A company that lets you make mobile phone calls wherever you are, using always the cheapest way possible: When in a Wifi zone for the small Vonage prices and outside Wifi for the normal cell phone prices, hopefully with a seamless handover.</p> <p>Taking these ideas into account I see for Vonage the Truphone modell as applicable, but directly starting whith a much broader base of clients and Wifi hotspots.</p> Maybe you are not right, Om.

I think there is still enough space for a great cellular/Wifi MVNO. A company that lets you make mobile phone calls wherever you are, using always the cheapest way possible: When in a Wifi zone for the small Vonage prices and outside Wifi for the normal cell phone prices, hopefully with a seamless handover.

Taking these ideas into account I see for Vonage the Truphone modell as applicable, but directly starting whith a much broader base of clients and Wifi hotspots.

]]> By: Michael http://gigaom.com/2007/02/20/vonage-wireless/#comment-88255 Michael Wed, 21 Feb 2007 04:06:51 +0000 http://gigaom.wordpress.com/2007/02/20/vonage-wireless/#comment-88255 <p>Om, if things go bad for Vonage, as the story sounds, what happens to the customers? Not so much the wireless, but their traditional business. More so out of curiosity, but I did happen to sign up with them this weekend, for my rental properties line, strictly based on price. Do they get snatched up, and if so, by whom/what types? Thanks, Michael</p> Om, if things go bad for Vonage, as the story sounds, what happens to the customers? Not so much the wireless, but their traditional business. More so out of curiosity, but I did happen to sign up with them this weekend, for my rental properties line, strictly based on price. Do they get snatched up, and if so, by whom/what types?
Thanks,
Michael

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