I can't help it... Vonage is like the school yard kid with "kick me" written on their back:-)
Early on, we called it... no sustainable business plan = no long term value proposition = no long term value. Yet, I have to say that I really didn't see this one... everyone's wanting to sue them. I mean, the news is just littered with new charges and accusations.OK, I understand how a stock sold at $17 and now valued at $7 is a real bummer but if you're stupid enough to buy this stock your smart enough to loose your money. These guys spent some $300-500 per sub to acquire customers! Not counting churn, which is a BIG event, it would take them nearly a year and a half to make back the money they spent today to acquire a new customer. This is not a business plan. Just like the Internet of 1999, brand loyalty doesn't mean a thing if you're not providing highly competitive value to your customers - offering, quality, price... the whole shooting match. Spending wildly, irrationally today does not mean that you'll have the lock on the industry 5 years from now.
There's just so much to say about this business, glad I'm passionate about it:-)
posted by TelephonyBuyersGuide @ 11:39 AM
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