Vonage Faces Tough Challenges That Threaten Its Future
Saturday March 24, 2007
...and also its customer database!My list of VoIP service providers is topped by Vonage, and I today wonder whether this will be the case for long!
Federal judgement on the Verizon-sues-Vonage case, after concluding that Vonage has infringed on Verizon's patents in at least three elements, had imposed a fine $58 million over Vonage in favor of Verizon, plus a 5.5% royalty for each future customer revenue.
On 23rd March, following demands for stronger actions against Vonage, the Court ordered Vonage to stop using Verizon's technology and deploy its own if it weren't to be closed down. Vonage has no more than two weeks to achieve that. Tough, eh!
However far-fetched it might seem, Vonage still denies being at fault and further ensures that customers will in no way be penalized by these actions. Vonage Chief Executive Officer, Mike Snyder, said, “We are confident that Vonage customers will not experience service interruptions or other changes... Our fight is far from over. We remain confident that Vonage has not infringed on any of Verizon’s patents.”
Read more on the court verdict in these articles from New York Times, CNET and BBC.
What should Vonage subscribers do now? The most sensible thing would be to follow the case, and also the service. Be proactive and do not hesitate to speak to Vonage staff about queries and apprehensions concerning this matter. In case you need to move, service providers don't lack. You have four others here, reviewed. In the meantime, let's hope that whatever happens, VoIP in all its splendor, and its users, do not suffer.
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