Vonage IPO Reactions

56 thoughts on “Vonage IPO Reactions”

  1. Vonage controls so little that you keep wondering how it can be called a business model. I am a customer for half a year, but have you ever tried to discuss quality issues with Vonage? Their international lines are hiccupy, the call center is in India, where you spend just half an hour spelling your name, and the standard response is that it must be your ISP problem. The day Comcast rolls out anything nationwide and attractive as far as price, Vonage will have to spend much more money to acquire new and keep the existing customers.

  2. The business model for VoIP parallels the business model for DSL; which is a money loser and no-one has really figured out how to make serious money.

    Vonage’s IPO filing is to flush out a lurking buyer or take advantage of the VoIP buzz at investment banks. Speaking of buzz, take a look at Bidu, the stock is at $79 down from it’s high of $130 (apprx.) This is probably what will happen to Vonage’s IPO.

  3. True the costs are around $9-$15. There is constant pressure on DSL pricing and most DSL subscriptions are tied to “mandatory” telephone service for a given duration. I’m not sure how long they can keep up the margins.

  4. Two years ago I met with Jeff Citron about running Vonage’s retail sales. I was told that the plan was to paint a good picture so Citron could sell the company. What has happened is greed. No one wants to pay $500 million for a company that never had a long term goal. The only reason Vonage was started is to make Citron a Billionair before the age of 40. Don’t get fooled again. Vonage will hirt you in the long run.

  5. I think they will do well with an IPO and get some new employees to answer the phone and reply to E-Mails. I cannot understand the calls I received from India. They need money to hire people to make the company run. They have 100,000 call a week because its a good idea. Any company would love to have this response to their product.It’s to bad that no one is taking advantages of this opportunity.

  6. I have been a Vonage customer for over 2 years. Their main problems are the voice quality is better than cell it isn’t as good as Ma Bell. The second concern is that their service is dependant on a broadband provider that may or may not like Vonage running over its lines. I use Comcast which also has a phone service to offer. With all that being said, I am very satisfied with Vonage and tell people about it every chance I get. I have not had that much need to call Customer Service, which frankly sucks at every telecom company I have ever had to deal with (bellsouth, comcast, savvis, AT&T, Charter, just to name a few) so in short, getting rid of Bellsouth was one of the happiest days of my consumer life. Vonage is a great product/service for the money.

  7. I will say Alex’s reply is a little exaggeration and racially motivated in reference to customer service in India. Vonage has issues with Customer Service right here in NJ. They are growing at a rapid pace from Subscribers prospective but quality of service is going down not from Call QoS standpoint but in their administrative processes like Billing,Shipping equipment and keeping track of customer issues. They need a big time Management revamp. People in India even do not have authorization to transfer the call back to NJ in case of escalation.I hope you can understand further. Vonage is going to be a good stock for short term investment purposes as this company knows how to market its products. Comcast cannot reach the same level as Vonage easily without a acquisation or a better price model.

  8. No, sorry those comments are not “racially motivated”.. He was simply stating the obvious. A different native language, a different culture, and workers generally unfamiliar with the industry mean a lot of miscommunication. Geez what a weenie.

  9. I’ve use Vonage since Feb 2003, and have saved $40 smackers per month after dropping the telco… I’ve never had to call support in 3 years and had no quality issues worth complaining about… other players have not given me a significant reason to even consider their service yet…

  10. Ditto John M. I have been a customer for 3 years and never had a problem or need to call tech support. In addition, I call internationally quite often and have no problems with that as well. Overall, vonage is better than any Telco I have ever used.

  11. Ditto. I’ve had vonage for almost a year and never had a problem. It’s a great value for my small business. I’ve had way worse experience with the entrenched telco’s.

  12. To follow up on the telecom industry my Mother has worked at GTE (now SBC) for almost 30 years. The past 5 have been in customer service-billing where their cutting edge technology has developed a new program to allow for email response to customer complaints! [How long has email been around?] Irregardless her feedback is that they are woefully understaffed in all areas of customer support – technical, billing, maintenance, hardware support,…

    I picked up Vonage just in Nov 2005 and have been relatively trouble free. Two emails sent in for power supply issues to the router were answered promptly. Billing is automatic each month (with no hidden charges) and notice sent via email and statement available on the web. Also email notice of voicemails including the calling # which is awesome when I am traveling and don’t want to waste roaming cell phone calls just to check and see if I even have messages.

    Vonage is a good service and they [or their competitor(s)] is quite likely the future of the land based telephone. As with DSL, however, securing and keeping a large national and international market is a tough business. The business model can be improved through reduction of the Marketing costs translating into net cash flow. This makes good sense especially if their marketing campaign isn’t having the right impact on their target consumers.

    Overall, quite happy with Vonage. If they can translate customer satisfaction into customer base growth with a reduction in Marketing costs this IPO will be a very good investment.

  13. I’ve had Vonage since Nov 05 and the service has been fine. A call to customer service in India about the minutes billed catagories was a waste of time but the rep was as helpful as they could be and diligent in their efforts. I liked dropping BellSouth because their TV marketing is just downright annoying and Vonage was a fresh alternative. Vonage marketing is fresher than BellSouth and kinda funny, too. I’ll go IPO, not because of business models, CEO or the like, but because I like their product, people and service. In the long run, they should be a good alternative choice for consumer migration.

  14. I’ve had Vonage at home for at least a couple years and I love it. Much better than Qwest, ATT, etc and all for $25/mo. Now they have offered me an opportunity to participate in their IPO which will be happening later this month. They are estimating an initial price at $16-$18. I am wondering whether to participate.

  15. I’m a Vonage customer, and can buy into their IPO. But opening the IPO to customers is a potential train wreck — Vonage is the evil twin of the last big tech firm to open the IPO to the individual investor, Google.

    Profitability: Google was wildly profitable, and has become more wildly profitable; Vonage is stupendously UNprofitable, and has promised bigger losses as they grow.

    Prospects: Google made a ship load of money with free products, and had a sustainable competitive advantage in hard-core engineering; Vonage is spending $210 in marketing per new customer to convince them to spend $30 a month on a service that every IM client is offering for much less.

    Reputation: Google was squeaky clean; Vonage founder and “chief strategist” has a whole section in the prospects on SEC accusations, “extensive fraudulent scheme,” “extensive fines,” and getting banned from the securities industry. Would you buy stock from this guy?

    I bought Google – its profitability, prospects and reputation proved to be good indicators of its potential. But I’m staying far, far away from Vonage for all the same reasons.

  16. Yeah “racially motivated” was/is a wienie. You want to market to English-speakers, and you use non-english speakers to handle customer service. “weinie” ignores this incredibly poor business practice and plays a race card. Wienie, wienie, wienie.

    Wats wurse than Vonajes pour kustomer survis communikashuns is their deceptive and dishonest business practices. (You don’t have to be a Pakistani to communicate poorly, do you ?)

    In short, they lie about cost and the ability to cancel in order to get you to “try” the service, and then set-up an impossible process for cancelling the service. Read some customer complaints via Google. The Better Business Bureau and the State Attorney General are a more effective means of cancelling your Vonage line than is Vonage itself.

    A business can only do this only so often before the stink and the stigma will have a permanent effect.

  17. As a Vonage subscriber since January 2004, I can honestly say that it is a fantastic service! It has saved me $10-30 per month and the quality is excellent.

    Prior to Vonage, I had a standard SBC land line with substandard service, basically paying for nothing as the line was nonfunctional more often than not, and with the phone company’s monopoly, there were no other options in my area. With SBC complaints were as frequent as time would permit–it was nearly impossible to reach customer service. When I did, they always tried to tell me it was inside the residence and not their problem… no it wasn’t… a service man told me the trouble was on the pole and under the road… but we went through this month after month, year after year… until Vonage came along and gave me functional phone service. I dropped SBC like a rock.

    So, I want to support Vonage. They may not be perfect, but the quality is there. They provide an excellent, reliable service at a low price.

  18. So, what about that Vonage directed share program for certain Vonage customers? Vonage is offering loyal customers the opportunity to puchase between 100 and 5000 common stock shares at IPO price (between $16 and $18). I received the email and the “system” voicemail, probably hundreds of thousands of Vonage subscribers have received them too. An opportunity or a trap?

  19. I am a happy Vonage customer. So when I received the invitation to participate in its IPO, it made me curious. But after reading about the background of Jeffrey A. Citron (Vonage’s “principal stockholder, founder, Chairman and Chief Strategist” and former CEO) and his run ins with the law, it made me nervous. More importantly, I decided not to participate in the IPO. You can read all the juicy details here:

    http://www.sec.gov/cgi-bin/browse-edgar?company=vonage&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany

    In my opinion, this clearly is an individual who puts his own interests first – above those of his shareholders or customers. Given the increased competition in VOIP from the big players (AT&T, Verizon, etc.), I think the IPO is a desperate attempt by Vonage execs to cash out before the competition beats them down, especially since it was reported that Vonage is now allocating 15% of IPO shares to its customers. In the really hot IPOs, do the customers ever get to participate to such an extent?

    After the IPO, Citron will own approximate 31% of Vonage. If its shares are priced at $14 – $16 dollars (as the company hopes it will be), then Citron will hold Vonage shares worth approximately $775 – $872 MILLION! And you don’t think he’s trying to cash out?!?

  20. I am a Vonage customer and haven’t decided whether to invest or not. I think if we pool our thoughts on this it will help us all come to the right conclusion. Please take this Short Survey about what you think Vonage stock will be worth in the future. I will post the results here on this comment space Thursday evening. Thanks.

  21. Wait…what’s wrong with cashing out or in? Isn’t that what capitalism, and especially the stock market are for?
    1st of all, how come people aren’t considering the possibility that VG stock will hit 32$ or $48 before anyone tries to “cash out.” Won’t that be a better deal for all those involved, especially those you may consider greedy investment people from Citron. Vonage is great, and people should be grateful for its exsistance. It has rescued all of us from the oligopoly of the telecom giants. I have saved thousands of dollars with Vonage over the years because I do a lot of long distance calling. Sprint, AT &T, Bell-South, and those real ‘corporate’ monsters used to charge me per call what I pay Vonage in 4-5 months. I have once recieved a 415$ sprint bill for communicating with Europe. It is true that trans-continental calling with Vonage has had choppy reception issues in the past but it has only gotten better not worse over time. Vonage means freedom, and a different way of doing business, and communicating with the world. What if Vonage starts partnering up with serious ISP’s around the world? Those same ones that are at competition with Vonage’s competitors? Try to tell me that all the .inc (s) of small ISPs would not jump on the opportunity to join Vonage vs. AT & T, Verizon, or those ‘Enron’ types. That’s right I said it…
    😀

  22. RE: In case one of the earlier contributors wants to know,
    English IS the native language of India, so as that contributor wrote, “using non-English speakers to handle customer service” (for Vonage) is simply not true. I’m a friggin American from the backwoods of Tennessee and I know that. Check your facts man before you utter your next inane statement.

  23. I have used Vonage for myself for about 3 years, and my business since I started it. I have been very happy with the service and Vonage in general. Unfortunately, that is not the determining factor in how well a stock will do.
    I have no doubts that Vonage as a company will continue to do well. The question is at what point will their excessive marketing campaign stop. They need to spend money to make money, but they need to do it intelligently. I believe, for the most part, they are doing so. Almost everyone has heard of Vonage now. More and more people are signing up. Everyone I know who has it, loves it. More people want to get it, but are waiting on having access to broadband.
    I know Vonage will do well in the short-term, the question is will it do well in the mid-long term.
    A minimum investment of $1600-1800 is significant for someone like me. I think I’m going to, but I’m not sure yet. And there’s the rub. I have until Friday to make my final decision. I guess we’ll all see then.

  24. I have a quick update to my Short Survey. Please visit and answer a few questions if you have not already done so.

    Min Day 1 price: 9.00
    Min Year 1 price: 3.00

    Median Day 1 price: 23.00
    Median Year 1 price: 22.00

    Average Day 1 price: 26.42
    Average Year 1 price: 30.21

    Max Day 1 price: 100.00
    Max Year 1 price: 250.00

  25. I have enjoyed being a vonage customer for two years with zero problems, including with customer service. I am not sure of the longterm prospects for the stock, but I do feel confident that the early days after the ipo will see some elevated prices. I’ve submitted my conditional offer for 500 shares (all I can afford to risk right now). I am curious about how the allocation will go but looking forward to the whole process.

  26. I am a systems integrator. I work with data, phone, TV and security systems everyday. I set up systems for colleges and hotels. I tried Vonage for our new office phone system. I could not get it to ring through consistently. Calls were not completed, some were dropped. For one week I had no phones at all. Customers would write e-mail or call my cell phone to ask if we were still in business. They would get messages saying that my number was disconnected or that it was not valid.

    I spent over 11 hours on-line or on hold trying to get help, most of it on hold. When I called to cancel service I told them that I needed to keep the number and it would take a few days for the phone company to connect me again. They cut me off right then. I had no phone service. Qwest could not reconnect me with that number unless it was active. I had to spend 3 hours trying to get Vonage to activate the number again. Then they gave me a temporary number for 3 days, which no one knew to call, before I got my old number and same crappy service back. When I was finally connected to a land line again they gave me a $12.50 credit for my troubles.

    Vonage should be put out of business. They ruined mine for almost a month. They have a cruddy product, lousy service and tech support and terrible business practices.

    If you have to choose between two cans and a string and Vonage, take the cans and string. You’ll be happier with the service.

  27. I own an ISP catering to business customers. We evaluated Vonage working on our DSL and Leased Line services and found it a good solution. We have been recommending it to customers seeking information on VoIP. I have used it for almost three years. No real Problems to report.

    I have found in discussions with others and my own experiences, that ISP and concurrent utilization make the biggest difference. I can communicate via Vonage to a cable user using Vonage with out issue unless he downloads data. The service gets choppy. However when communicating with others on our network via Vonage, quality does not seem to be impacted by activity. Certain video streams do impact my service. For example if I am watching a CNN Stream, I can hear a difference on the line. But is usualy still usable. However if others on my home network are streaming, then quality will be impacted. Occasional, raley I will drop to cell for important calls. Cell is my backup for when issues come up such a down commection.

    The stock? I did submit the offer. The IPO is being handled by major brokerage firms and the WEB process really hammered home the issues and risks involved. My experience is that any IPO is a risk and there are protections against immediate sales (dumping) of stock by insiders. SOX (Sarbanes-Oxley, Act) has added much more control. There are other investors involved so I recommend making a decision on factors such as the industry, market share, viability and longevity and your personal position. As these posts indicate, there are many examples of positives and negatives for Vonage and other providers. If you believe VoIP will be an important service that can be offered independently of Telcos going forward, then I say take a shot on a market leader.

  28. Been using Vonage for a while.

    Since no one has mentioned, the WEB portal has been a real positive for me. I have an older father who lives about 3 hours away. We talk every night via my vonage. When he and others call my vonage line, I have an email alert me. I can then get on via a web browser and pick up (Play) the messages.

    I believe that the WEB resources work well and are a plus for Vonage. I like the billing process and the confirmation email received each month. For me vonage has been stress free!

  29. I’ve used vonage for over 2 years and although I’ve had a few hiccups I have been extremely happy not having to ever talk with anyone at SBC again. Of course people are going to complain about the customer service issues, etc. But I can tell you one thing, for every nightmare support story from Vonage, there are 100 much worse stories from the likes of SBC. When my vonage line was connected within an hour of getting my terminal adapter, I yelled like William Wallace in Braveheart “FREEDOM!!!”

    In regards to the BS annoucement this week from Skype, etc – the services really do not compare. Just a tactic from eBay to try and create FUD around the market leader. I remember when Google did it’s IPO and I participated in that (still hold 75% of the shares I bought). The week before the Google IPO it was the same deal – negative articles in the WSJ from all the bankers that were pissed off not to be making hugh profits from the IPO as well as competitors spreading FUD. A lot of good it did when it opened almost $50/share above the offering price.

    I do think Citron is a crook and not to be trusted but I have to give him credit for being a visionary and attacking industries ripe for disruption.

    I going to bid for about 4,000 shares and sell most on the first day. I don’t think the long-term prospects are that great but I do think the deal is over-subscribed and will go up on day 1. Hopefully it will go up at least $10/share… we shall see…

  30. Here are the results of my
    Short Survey
    so far. Please visit and answer a few questions if you have not already done so. I will provide final numbers tomorrow before the deadline, if there are many more submissions.

    Responses: 123

    Current Customers: 122

    Plan to participate: 106

    Min Day 1 price: 9.00
    Min Year 1 price: 3.00

    Median Day 1 price: 22.00
    Median Year 1 price: 20.00

    Average Day 1 price: 24.92
    Average Year 1 price: 37.41

    Max Day 1 price: 100.00
    Max Year 1 price: 250.00

    So among current customers who were interested enough to find this blog and take the survey, most will participate. The expected return is rather modest, but certainly worth investing in.

  31. Typo-typo-typo!

    Scratch the Average Year 1 price above!

    Correct value = Average Year 1 price: 27.41, not 37.41

    Sorry for the error. Please adjust your buying plans accordingly. Again, I will post more info Friday before 3 PM EDT.

  32. I was considering buying the full 5000 shares… Decided against it. I put in a bid for 300 shares instead.

    I’ve worked for a Wireless ISP, run a CLEC and a cellular reseller. It’s very difficult to make money in any of them. Here is my take on Vonage.

    Pros:
    -99% of customers pre-pay so there is very little bad debt and collections. Compared to the money Tradional LEC’s loose to deadbeats providing residential service.

    • They have succeded in their Branding campaign. Vonage is by far the #1 name in VoIP. Even more so than Verizon AT&T.

    • Cable TV companies are the only serious competition, but it’s a very big pie to share and Vonage will work on almost any broadband connection not just cable.

    • Technology is good and getting better.

    -Co-Braned partners include Cisco & Linksys. Retail penetration in Best Buy, Circuit City, Wal Mart etc.

    Cons
    – Core business does not make money and never will at current price levels. They lose money on every customer even before you account for the massive marketing cost. IPO could change this if money is put into devloping a lower cost VoIP box/router and investing in a new network possibly even buying dark fiber.

    • Most of IPO money will probabably end up in Jeffrey Citron’s pocket instead of developing the company. (make no mistake this guy is slime)

    • Churn rate is unacceptably high. Too many user leave Vonage after trying it out. Again IPO could change this if money is put into the company and not the board’s pockets.

    • New CEO is from ADT security systems, another slime company. Although he has been successful in the past markting to consumers.

    • Tivo now selling at 20% it’s orignal IPO Price in 1999.

    Summary.
    This thing has .com written all over it. But some people made a lot of money on “.com”s(Mark Cuban). Jim Cramer has said on his show he likes it in the short term (“because people are foolish”) but not a good long term stock. I trust the current management of of Vonage about as far as I could comfortably spit a rat so make sure you get out before they do. Good Luck

  33. I have been thinking about this a lot. Vonage IPO is clearly a very high risk deal, no matter how you look at it, and if that’s your investing style, I say go for it. I for one have been an extremely happy customer, it’s incredible service incredibly cheap. Skype doesn’t even compare because it isn’t technically double-ended VoIP, there is no phone connection. I have wired whole houses to use two line Vonage systems. It’s full featured with Caller ID, Call Forwarding, and automatic forwarding if the system happens to go down, etc, which Skype and the like don’t have. You don’t even nead a computer to use vonage. Vonage has backing from Cisco via Linksys sytems ready to go with Vonage so readily. Could it tank, yes, absolutely it’s a big gamble. And has anyone made mention that now calls to many European countries, including Italy, Spain, France, England are now free? They could tap a HUGE international market with free country-country calling over real phone lines instead of a crappy headset like you use with skype. If vonage opens up it’s sales and services overseas it could be monumental, an overseas telephone network with an unlimited flat fee to many foreign countries? Could be the next huge marketing ploy. Another question is why open the IPO to customers first? Aren’t they mostly the stingiest of penny pinchers since their service is such a bargain? I would say most vonage customers are extremely loyal and wouldn’t give up Vonage for any other service. At 1.6 million customers, there is a lot to be said for that. Surely a buyout from another company would be a big potential too, considering how much Ebay paid for the much less capable Scype, all the more reason I’m going in.

  34. Ok. Here are the final results from my little survey.

    Valid Responses: 143

    Current Customers: 141

    Plan to participate: 124

    Min Day 1 price: 9.00
    Min Year 1 price: 3.00

    Median Day 1 price: 22.00
    Median Year 1 price: 20.00

    Average Day 1 price: 24.18
    Average Year 1 price: 26.37

    Max Day 1 price: 100.00
    Max Year 1 price: 250.00

    So, the prediction is about a 25% rise over $18/share on the first day. Hmmm, that seems a little optimistic, but I think the 88% planned participation rate is a very good sign. Good luck to all and thanks for submitting.

  35. I’ve been a very happy Vonage customer for about a year and have not thought about changing service once since. Every month we don’t pay a phone bill I feel great!!! Never had to call service but a co-worker that did was very pleased with the level of service they got.

    After thinking long and hard about the IPO I put in for what I could afford on the short notice. I have no idea how long I’ll hold – time will tell. Good luck to everyone – and all you Skype pumpers take a leap.

  36. The only problems I’ve had with my phone service since switching to Vonage have been the fault of my cable provider. When my cable is out, so is the phone. But come on, everyone that I want calling my house has my cell phone number. So the only ones suffering are the telemarketers.

    BTW – Current happy customer that bid on 100 shares. Plan to sell after 5 days regardless. Life’s a gamble…and wouldn’t we all be a little “slimy” for $800 million?

  37. I have had Vonage for several years now. I had a problem with the first Motorola voip router they sent me. I could not enter tones into interactive voice response systems. I told them I had a problem and they promptly sent me a new Linksys router. No problems at all since installing the new router. I have the voip take priority since it is the first device on my network. I have no problems down-loading and talking on the phone.

    I think Vonage will be a buyout target when the baby bells get IPTV to the home.

  38. I saw the Vonage IPO discussion on CNBC with Sue Herera earlier today (Monday). Learned nothing from the Vonage-nayser nor the pro-Vonage analyst guests. They discussed business model sustainability. No one mentioned the “network neutrality” bills in Congress that may be important for long term growth. Very shallow knowledge of the actual environment.

    One thing about the true competition to Vonage, (the telcos and cable companies) is that it’s unlikely for them to offer VoIP solutions over a competitor’s infrastructure. Vonage is delivery neutral. I use it on Cox. My sister uses it on Comcast. My girlfriend uses it over her Qwest DSL line. So, how can these competitors make much inroads, other than bundling with cable and high-speed internet services? Still, I do the math, and I’m still saving a significant amount per month with Vonage. That’ why I reject Cox’s VoIP phone service, even though I receive cable and internet from them. Their monthly pricing is the same as Vonage’s but they charge $.05 per minute. I also like the ability to travel with my Vonage/Cisco ATA box and phone, allowing me to receive and send calls wherever I travel (that there’s a high-speed internet connection).

    One thing to remember. While Vonage is great at retail marketing, their real boom in sales may be when DSL providers bundle Vonage with their service.

    If telcos offered a $39 per month high-speed internet connection without requiring a basic landline phone contract, their sales would boom and it would be perfect to offer a bundled Vonage solution. Qwest in my area is a pig on pricing, bundled or not. When they offer a just-DSL connection, I will gladly dump Cox (the fascists who along with Phoenix city council killed public access TV for our 3-million person tri-city area).

    So, look for Vonage growth to take-off as last-mile telephone companies see the profitablity benefits of selling “just DSL”. It could happen.

    Oh, did I mention Philadelphia, San Francisco and Tempe? As cities Wi-Fi their entire areas with high-speed internet, Vonage can piggyback that perfectly, without any bundling with actual competitors, relying again on retail customers to do the math and easy installations.

    That may be Vonage’s biggest hope – the WiFi-ing of cities, eliminating the need for potential customers to connect through cable or telcos! Perhaps they should focus their marketing efforts in these areas. I bet they would receive a lot more new subscribers per dollar spent on marketing.

    Best wishes for a happy Vonage IPO day (pricing Tuesday, opening Wednesday?).

    -HR

  39. Don’t you all realize there are only 4 million shares going to subscribers and plenty of people including myself wanted the full 5,000. Most people under 1500 shares won’t be getting filled at all and I will probably only get 1300.

  40. Survey submissions are still coming in, so I will post periodically.

    Valid Responses: 179

    Current Customers: 176

    Plan to participate: 154 (87.5%)

    Min Day 1 price: 9.00
    Min Year 1 price: 1.00

    Median Day 1 price: 22.00
    Median Year 1 price: 20.00

    Average Day 1 price: 24.64
    Average Year 1 price: 26.71

    Max Day 1 price: 100.00
    Max Year 1 price: 250.00

    The latest responses have pushed the averages up just a bit. The planned participation rates point to the reserved shares possibly being oversold. Let’s hope they don’t have to exercise the 75% reduction rule.

  41. Skype has over 75 mil users worldwide. Vonage just 1.5 in US. Skype just started free skypeout. All US and Canada calls to regular phones are free – that puts a pressure not only on Vonage but on all bells combined. AOL is going to roll out VoIP AIM with a free inbound number. Google, Yahoo, MSN are all getting on the VoIP bandwagon. In short, the prospect for Vonage and the widly detested bells looks bleak. The only issue with these VoIP services is that you are tied to the PC. There are a few options – get a bluetooth headset or wait for one of the WiFi phones (Netgear is launching one). In short, this market will be brutal for the next few years and we the customers have all to gain. I predict free (almost) internet and phone service in the next few years. We’ve been milked by the comcasts, bells of these world for way too long. Its pay back time.

  42. You should all know that a lot of the positive comments here and everywhere are posted by Vonage employees themselves. This is a common but very hush hush job responsibility over there. Key marketing, PR and technical employees have been tasked with refuting bad user experiences online with better ones while posing as customers. They consider it viral marketing.

  43. I have used vonage after quitting verizon. I called once to to setup the system. After that the phone works. Quality is good.
    You cannot beat the rate. The international calls aslo has excellent connections and voice quality. The only draback I have to shellout to Charter 50$ for cable internet!

  44. Nice open on the market, great valuation. Glad they let the people the depend on the most loose money out the gate. I was not “in”, as I declined their ploy to prop up the price of the stock. It will be a good buy when it hits $9.00.

  45. So much for your survey and the “Wisdom of Crowds”, Goak. I suggest you look into another theory widely embraced by the financial community, called the “Greater Fool Theory”. I really can’t throw stones though. I was also off in my first day closing estimate. I thought it would close at $11.50. Looks like it won’t hit that until today or tomorrow.

  46. I have been Vonage customer for over a year and am fairly satisfied with the service. It is not perfect but the bellsouth service that I previously had was also not perfect. Vonage has great international rates. As regards customer service, the only time I needed to call them was at the time of installing my equipment and they were very helpful.

  47. Used to be an SBC customer with a DSL subscription. With my wife talking long distance to her parents, our phone bill was regularly around $150.

    Got broadband from Comcast for $40/month and signed up for the unlimited long distance plan at Vonage for $29/month.

    So we ended up with:

    1) Broadband much faster (Comcast cable modem instead of SBC DSL, 8000 Kbps instead of 1500 Kbps)

    2) Unlimited long distance and very cheap international rates.

    3) Excellent service. In the past two years I don’t remember my Vonage phone being down once.

    We now spend $70/month instead of $150/month with much better service. I completely cancelled my SBC DSL and phone – I don’t even have a land line anymore.

    How can anyone think that Vonage and VOIP won’t succeed? The big phone companies are the dinosaurs that move slowly and will eventually loose.

  48. I certainly hope Vonage succeeds. If it doesn’t I will probably go totally cellular. I will not pay for a land line from Qwest, with long distance charges ever again. The local cable company wants $15 more a month for a similar service ($39). If I was living alone I would get $14/per month package from Vonage saving even more. I basically want the landline to put on resumes, do an occasional fax and for giving out to others you don’t want to give your cell phone number to (etc).

    While I don’t know if Vonage will survive or is really good investment, I will strongly reccomend it if you wan’t to keep a landline it is certainly more affordable than the usual suspects.

  49. Posted by Goak

    “Don’t you all realize there are only 4 million shares going to subscribers and plenty of people including myself wanted the full 5,000. Most people under 1500 shares won’t be getting filled at all and I will probably only get 1300.”

    I hope you got the full 5,000 shares dummy!! Hahaha

  50. has anyone had problems running Vonage over a SBC/ATT DSL line? I have been paying for Vonage for nearly 3 months, and have ot been able to get it to work nor get Vonage or ATT/SBC DSL service to help me with my problem. Could it be I have a MAC? Or is DSL not the way to go if you plan on using Vonage?
    Any Ideas???

  51. I tried to cancel Vonage in June of 2006. Now it is August of 2006 and I’m still being charged. My service was down more than up. I can’t stand any of the numbers I’ve called. Everyone appears to have a heavy accent & have trouble spelling my name. (forget about pronouncing)

    The Vonage person (heavy India accent) told me she’ll cancel my account.
    Needless to say..this never happened. Even though there is a June 2006 comment on my account that says the customer wants to cancel his account, they will not refund for the past 2 months.
    Vonage refuses to refund the charges saying that they have a strict policy & my situation could not have happened.
    Their policy dictates that the Vonage person I spoke too should have transferred me to an Account Mgt. Dept.<-never happened.
    Now I am sunk 2 month charges + early cancellation fee.
    They never refunded me for the down time nor my time on the phone with their technical support dept.
    Bad service, poor equipment, Watch out!

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