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ECT News Community   »   E-Commerce Times Talkback   »   Re: Vonage IPO: The VoIP Race Is On



Re: Vonage IPO: The VoIP Race Is On
Posted by: Theodore F. di Stefano 2006-07-07 15:36:21
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In January 2005, I wrote an article for the E-Commerce Times entitled "VoIP Here to Stay." In that article, I stated, "The future of VoIP is, to a significant extent, now!" It's hard to imagine that the column was written only about a year and a half ago. At that time, Vonage had about 350,000 customers, and the "big guys" like Time Warner, Cablevision, and Comcast were just beginning to focus on VoIP. Vonage was clearly the leader.


Re: Vonage IPO: The VoIP Race Is On
Posted by: appeters 2006-07-07 15:48:28 In reply to: Theodore F. di Stefano
What Mr. Stefano fails to discuss in his article on Vonage is that focusing on marketing as part of your core strategy is fine, but only if you can keep the customer. I recently read an article by another analyst stating that Vonage is suffering from huge attrition. I am not surprised by this since I personally had very bad experience with customer service and the service itself is not great. I've heard this personally from many people - just check out Amazon.com customer opinions! Price without good service is not what customers will endure. Companies forget that we the customer have choices and there are alternatives to Vonage! Skype works very well with no equipment to buy, no connection charges (nor for that matter disconnection) and no long term contract. Even when they start to charge for dialing land lines (supposedly after Dec. 31st), I doubt this smart, customer oriented company will start throwing in contracts, other charges or even be less competitive in any way.
Vonage has a grim future unless it's CEO can stop being so arrogant and remember that customer service is king in a competitive me too company.
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