Vonage has been on our minds lately. A UBS Research report reminded us that we were right in our skepticism about the future growth prospects, and there are signs of a slowdown.
The company had ended the second quarter with 1.8M lines in service. Assuming the company crossed the 2 million mark yesterday, it would imply a pace of roughly 2,220 net adds per day. This represents a slowdown from the roughly 2,800 subscribers added per day in the second quarter. The current pace would imply 2.057M subscribers at the end of 3Q06, roughly in line with our estimate of 2.128M.