Vonage struggles after tough year

By Justin Mann on February 26, 2008, 8:03 PM
Vonage has so far managed to survive many beatings from the likes of Sprint and Verizon, and more recently a costly settlement with AT&T, but the company hasn't come out unscathed. It seems that the VoIP giant is struggling to stay afloat, also fighting problems over customer service and bad PR.

According to Wired, this year Vonage will be sitting on well over $253 million in debt. Two and a half million customers aside, their growth has also slowed. This is also paired with increasing competition from vendors such as Qwest and Comcast, who are heavily promoting “all in one” bundles to their current base of customers. The future does not look bright for Vonage, and a change in business plan might be in order. A year from now we might be hearing about Vonage being acquired by another company.




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