Wednesday, July 16, 2003

Is VOIP ready for prime time? | CNET

Is VOIP ready for prime time? | CNET

Vonage's CFO stated that he thinks Vonage is going to have a million customers by the end of 2004. I got to find out what he is smoking.

First, even if Packet8 did not exist, Vonage could not get to 1 million customers by the end of 2004. Let's see, Vonage launched its service in March 2002 and by July 2003 they have 34,000 customers. Do they think we are stupid? Do they really think that we are going to buy them getting 1 million customers by the end of 2004, at this rate, they are no where close to that.

Second, with Packet8 now priced at half of what Vonage costs and more features coming for the Packet8 service, Vonage will have trouble holding on to customers they already have. I was a Vonage customer, then I found Packet8 and dropped Vonage in a heart beat. I could not be happier with my decision. Not only is Packet8 cheaper, but their customer service is so much better than Vonage (that is not saying much because Vonage's customer service in notoriously horrible). But in actuality, Packet8 has the best customer service of any communications service provider I dealt with. Furthermore, the quality on Packet8 is much better than on Vonage.

Vonage must be feeling the heat. In the article their CFO also states the Vonage will have to lower their rates due to competition, aka Packet8.


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