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Vonage Investors Spooked
Company can't get out of cable's shadow
Vonage shares took a hit today after the company issued fourth quarter results. While the VoIP provider added 955,000 net subscriber lines in 2006, growth is slowing, and competition from cable providers (who control more than 65% of the market now) continues to spook investors. Vonage spent $365 million on marketing last year, or 60% of the company's annual revenue. It costs the company $306 to nab a new subscriber, up from $244 last year, notes Reuters. Meanwhile, Vonage customers in our Vonage forum lament the steady rise in bloated additional fees and surcharges, and many reported an outage yesterday.

Most recommended from 19 comments



FFH5
Premium Member
join:2002-03-03
Tavistock NJ

2 recommendations

FFH5

Premium Member

Losing $'s on every customer; but making it up in volume

Their stock price dropped because it is costing them too much to garner subscribers. And they still have a high churn rate(though slightly better) because many of their customers are deadbeats.