benjamin All propositions are of equal value Premium join:2000-12-20 New York, NY
Losses exaggerated? Or perhaps a typo...
quote:...the company's "churn" or turnover rate remains unchanged at 3%. At that rate, Vonage is forced to replace a third of their customer base every year.
Perhaps I am missing something but how does a 3% churn rate force Vonage to replace 1/3 (i.e. 33%) of its customers every year?
reply to benjamin 3% per month for each of the 12 months per year = 36% = more than 1/3 of their customer base. Of course, this is reduced somewhat by any customers that dump service and come back in the same year. I can't imagine there are too many of those considering all the change fees and associated headaches.
I read it as either the yearly or quarterly loss... but you must be right. Makes much more sense.