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May 30, 2005

Sailing aboard the VoIP Titanic?

finance — by TDavid @ 12:14 am PST

Hmm, wonder if I should be concerned about my favorite VoIP company: Vonage? Om Malik says that they are on a spending tear:

Vonage is spending $21.829 million a month on Internet advertising alone, making it the second biggest money spender online.

With all these expenses they are racking up are they ripe for a buyout? I’ve asked this before, thinking maybe somebody like Comcast would step in. Malik points out that high customer acquistion costs and looming churning issues could be a real problem.

Meanwhile, I’ve noticed a few issues with my second favorite VoIP provider: Skype. I have called and left messages from my car and noticed some of these messages are delayed over eight hours. Has anybody else experienced voicemail delays?

Put all this together and add in the new 911 compliance requirements for VoIP providers and it equals a lot of coin.

source CNET: FAQ: Why the FCC is targeting VoIP 911 calls

The FCC has ruled that Net providers connecting in some way to the traditional phone network will have 120 days to find a way to steer 911 calls to the appropriate dispatchers. Those calls also must include data such as the caller’s address and phone number.

The VoIP providers are saying that the 120 window to compliance is not long enough. Is it?

Why, as a 1+ year customer of VoIP (100% for our residential service) do I get this eerie, uncomfortable feeling that the VoIP ship were riding is named Titanic?

No, no, it’s not that drastic. Yet.

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  1. Sailing Aboard The VoIP Titanic?

    A different take on Vonage’s spending spree:…

    Trackback by Phones — May 31, 2005 @ 12:54 pm PST


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