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story category Comcast Is The New VoIP King
Vonage posts subscriber loss, falls to second place
(old news - 10:16AM Thursday Aug 09 2007)
tags: business · VoIP · Comcast
Tipped by TKJunkMail See Profile
Vonage has released their second quarter earnings, which note that while the company posted a smaller loss due to reduced marketing costs, they're no longer the largest VoIP provider. That title now belongs to Comcast, who has added some three million VoIP customers in a little over two years.
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Vonage revenue grew to a record $206 million, a 43% increase jump from the $144 million in revenue posted this time last year. The company's net loss narrowed to $34 million, or $0.22 per share, from a net loss of $74 million this time last year.

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The company added 57,000 net subscriber lines during the quarter and finished with 2.45 million lines in service. According to interim CEO Jeff Citron, the decline in subscriber additions is thanks to scaled back marketing efforts. Vonage still pays $287 per user in marketing costs.

Note that fellow VoIP operator Packet8 saw profitability for the first time ever this week. That's not only the first time Packet8 has seen black ink, but it's also the first time any public independent U.S. VoIP operator has posted a profit.

Related:
  1. Comcast Denies Unfair VoIP Discrimination
  2. Comcast Struggles With Subscriber Additions
  3. Google Voice Lets You Use Your Existing Number
  4. Google: We're Blocking Fewer Nun Calls
  5. VoIP Generated $21 Billion In Just Six Months
  6. VoIP Over 3G Still Not Working For iPhone
  7. Comcast Testing WiMax Femtocells
  8. Vonage Settles Over Annoying Cancellation Tactics
Forums » Comcast Is The New VoIP King
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Post a:

Johnny Tinky

@embarqhsd.net

I'm sorta glad for the new king

now maybe my phone will quit ringing during dinner. or at all
reelbigfish

join:2002-06-06
Boston, MA
·Comcast
·Comcast Digital Vo..

Congrats!

I have to applaud Comcast for this feat. Now granted the other cable companies are getting great numbers as well, and they have a smaller population so it is hard to get these numbers, but it has been a great service. When I had Vonage with all the taxes and such it was costing me $33/month. Now I have Comcast for $33/month and when my promo is up, they are offering contracts to lock in the low rates. I have to say it has been more reliable than Vonage and it did work when we lost power for 6 hours a couple weeks ago. I also have gotten better customer service from Comcast for phone than from Vonage. Now, both customer service departments need to improve, but Comcast has been the better of the two.
sdgeiger

join:2001-11-26
Phoenixville, PA


1 edit

Re: Congrats!

In my area (Philadelphia area), Comcast Digital Voice is terrible. I know several people that cannot make calls to their friends and or families and Comcast blames it on their vendors and won't do anything to help them. So, for these people, they have to use their cellphones to call family.

Everyone in this area hates Comcast (which is their headquarters). Everyone is switching to Verizon's FIOS Internet and FIOS TV and anyone wanting to go with a larger VOIP provider (for stability, is going with Verizon's VoiceWing.

I have Verizon's FIOS Internet and FIOS TV, but I went with ViaTalk and I don't have any issues calling my friends or family.

Comcast is good at marketing to the un-savvy, just like Microsoft. So, just because Comcast is the #1 VOIP provider doesn't mean they have a high quality product.

lettcco

join:2003-12-04
Valencia, CA

sigh

it's a sad day when comcrap comes out ahead of incumbent VOIP provider EVEN when they are charging more for the same service.
HyPeRbAnD

join:2006-01-07
Stow, MA

Re: sigh

said by lettcco See Profile :

EVEN when they are charging more for the same service.
It's not the same service. Almost!

Defiance82
Computer Elite
Premium
join:2002-09-11
Reeds Spring, MO
clubs:
·Suddenlink

said by lettcco See Profile :

it's a sad day when comcrap comes out ahead of incumbent VOIP provider EVEN when they are charging more for the same service.
It's not the same service... Comcast VoIP is actually better than Vonage in our area. Not to mention it's a dedicated line unlike Vonage, and has VoIP priority unlike Vonage. No more muffled voices or dropped calls when uploading either
--
Programming is like sex. One mistake - endless support.

odreian615

join:2006-01-18
Chicago, IL

Re: sigh

Isn't that Anti net-neutrality

Ebolla

join:2005-09-28
Dracut, MA

Re: sigh

it doesnt impact upload or download of user as its on a diff. portion of bandwidth used by emta so I would think net-neutrality wouldnt apply.
Ahrenl

join:2004-10-26
North Andover, MA
·Verizon FIOS


1 edit
said by odreian615 See Profile :

Isn't that Anti net-neutrality
Depending on which definition you have of net neutrality.

If they allow other VOIP services to use the dedicated bandwidth for no additional fee to the company, then it's not. That's probably not what they're doing. Hence why they can charge more for a "better service". The incumbant plan will be to rinse and repeat this for all internet services so they can capture the revenue for all their "better services". When in fact the service is exactly the same/or worse.

Geminimind
Premium
join:2003-12-20
Sacramento, CA
yep dedicated line and way better sound quality not to mention the backup battery

Camelot One
Premium,MVM
join:2001-11-21
Sarasota, FL
clubs:

They are all marketing to the wrong people

I don't get it. Vonage markets to people as the cheaper alternative, yet they don't end up being any cheaper. Comcast markets as the "better customer service" alternative, yet they treat their customers like crap.

I honestly don't understand why any informed human being would use either one. Then again, if they were able to gobble up the uninformed market, they'd hold a 90% or better total market share.
--
Intel Quad Core QX6700 @3500Mhz/Asus P5N32-E SLI/4x 1024Mb Corsair/WD 74Gb Raptor/PNY 7800GTs SLI/Antec 550 True Control/Custom water cooler
reelbigfish

join:2002-06-06
Boston, MA
·Comcast
·Comcast Digital Vo..


1 edit

Re: They are all marketing to the wrong people

It really does depend on area. The Comcast network in my area is quite good. When I did have to call them, they were helpful and fixed the problem. So far none of the problems have been on my end and they haven't interrupted my service, just issues with voice mail. Plus, a lot of people wouldn't have a home phone type service without Comcast or other cable company or Vonage as they would use their cell as their primary line.

Geminimind
Premium
join:2003-12-20
Sacramento, CA

Re: They are all marketing to the wrong people

They are pretty good here in Sacramento
mobbo

join:2005-04-13
Denton, TX
·Verizon FIOS

Believe it or not, Vonage treats their customers even crappier than Comcast. God forbid you ever have to cancel Vonage. It's a 45 minute wait time AT A MINUMUM... even when you are the first caller at 8am... with a looping voice message the whole time. Vonage lost all hope of my return business after what was nothing less than punishment for trying to cancel temporarily.

The Beer
I Love It When A Plan Comes Together
Premium
join:2001-07-24
Omaha, NE
clubs:
·ViaTalk


1 edit

Ummmm.

Karl, you may want to say any publicly traded VOIP pure play company has ever made any money.

I know my company makes money every month otherwise I would not be eating. Your slanted view on this subject hurts the industry, especially the small independents that get shed in the new and improved "They will all implode like Sunrocket".

Then again I assume Comcast makes no money on their VOIP services?

As I say every time one of these stupid Vonage VS Cable VOIP articles is posted.

Comcast is a CLEC, Vonage is not.

Comcast's product is marketed as a wire line replacement, not a broadband phone.

Yes Comcast may use the VOIP technology to deliver their service, it's still not the same service as Vonage.
quatrix
Premium
join:2005-02-11
Davie, FL

Re: Ummmm.

I can run out and use a credit card to "buy" a $20 pizza. That doesn't necessarily mean I have $20. Charter is billions of dollars in debt. That doesn't mean their employees don't get paid.

The Beer
I Love It When A Plan Comes Together
Premium
join:2001-07-24
Omaha, NE
clubs:
·ViaTalk

Re: Ummmm.

said by quatrix See Profile :

I can run out and use a credit card to "buy" a $20 pizza. That doesn't necessarily mean I have $20. Charter is billions of dollars in debt. That doesn't mean their employees don't get paid.
I guess I should have been specific, I eat, get paid, own a small VOIP company and my only personal or company debt is my 1st mortgage.

You can make money, just not be stupid.
Automate

join:2001-06-26
Atlanta, GA
·Comcast

said by The Beer See Profile :

I know my company makes money every month otherwise I would not be eating.
Mind sharing what VOIP company you own? I noticed you gave SunRocket and ViaTalk very bad ratings. You wouldn't be a little biased would you?

ATy78

@optonline.net

wonage

$287 per user holy shit
why don't they just lower there price kill activations fees other crap fees they stick you with

i remember when i sign-up my first month bill when from $25 to (device) $79.99 + (Activation) $29.99 + (phone plan 3month deal) $19.99= 129.97 + shipping/fees =$145.62 there was a rebate of 79.99 for the device but i had to send in upc or something like that after all the fees i had to pay crazy then they wonder why they losing customers anyways i called cancel and when with packet8 sure they offer me to refund the activation fee but still when with packet8 @ that time deal free activation free device free shipping etc.
and for $20 a month + 911& state fees around $24

it was for brother who was going to iraq @ that to time everything work great.

this was about 1.5 years ago.

now is on there cable after them with free install free activation no bull shit fees they are going down.
mobbo

join:2005-04-13
Denton, TX

Re: wonage

No kidding. They could drop their price down to $19.99/month at the most, but to get my business back, they need to improve customer service DRASTICALLY.
madrhino

join:2004-07-03

Fix the core products first

I wish they would worry about getting my HSI speeds up to at least half what I'm paying for before they branch out.
--
Get Verizon FIOS,The Anti-DIOS

LeftOfSanity

join:2005-11-06
Felton, DE

Re: Fix the core products first

said by madrhino See Profile :

I wish they would worry about getting my HSI speeds up to at least half what I'm paying for before they branch out.


What area are you in?
--
Fighting on the Internet is like winning the Special Olympics. Win or lose, your still Retarted!
madrhino

join:2004-07-03
·Verizon FIOS

Re: Fix the core products first

said by LeftOfSanity See Profile :

said by madrhino See Profile :

I wish they would worry about getting my HSI speeds up to at least half what I'm paying for before they branch out.


What area are you in?
DC.At night time the last month you might as well be using carrier pigeon.
--
Get Verizon FIOS,The Anti-DIOS

pokesph
It Is Almost Fast
Premium
join:2001-06-25
Sacramento, CA
clubs:
·Comcast

comcrap is still too expensive

when i can get a POTS line, including LD, for under 10 bux a month, why on earth would I want to pay $33 - 60 a month for a shady, not always working VoIP solution..

Now I may order one when, and if, the prices come WAY down.. like to 15 bux a month or so, otherwise, I'll stick to my tried and true POTS line for now.

as for the numbers, as I read above, there are indeed way too many uninformed consumers out there that really don't know any better and just jump on the first good offer (at least to them) shown to them
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Webmaster - Steve
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hobgoblin
Sortof Agoblin
Premium
join:2001-11-25
Orchard Park, NY
clubs:

Re: comcrap is still too expensive

said by pokesph See Profile :

when i can get a POTS line, including LD, for under 10 bux a month, why on earth would I want to pay $33 - 60 a month for a shady, not always working VoIP solution..

I make at least 90 hours of calls to Canada a month
I make at least 8 hours of calls to the UK each month.

Can you price that with your current service for me?

Hob

slashman
Don't do it . ..
Premium
join:2003-10-01
Batavia, IL
Wow who are you using. By me a POTs line with no features and no LD with taxes & fees is closer to $20.

Geminimind
Premium
join:2003-12-20
Sacramento, CA

Re: comcrap is still too expensive

Dont even get me started with at$t

caddyroger
Premium
join:2001-06-11
clubs:
·Comcast

said by slashman See Profile :

Wow who are you using. By me a POTs line with no features and no LD with taxes & fees is closer to $20.
I would like to know to if he isn't just blowing smoke.
--
Caddy
MySpareBrain

join:2000-06-12
Pearland, TX
·Comcast
·AT&T U-Verse
·Vonage
·AT&T Yahoo


2 edits

Re: comcrap is still too expensive

Even though Comcast may have a dedicated VOIP Line, my short lived experience with them early last year was atrocious. I switched from Vonage to Comcast. Went straight back to Vonage 3 weeks later and have never looked back.

At least with Vonage I didn't get complaints from people telling me I sound like a robot, or like a bad cell phone call when it is about to go out of range or just plain static.

I would rather stay with Vonage and pay less, and not be locked into a contract.

I have had a few very minor issues here and there but Vonage fixed every one of them almost instantly. I can also upload and talk at the same time without losing audio quality.

Geminimind
Premium
join:2003-12-20
Sacramento, CA

Re: comcrap is still too expensive

I quess it depends on the area and the network or you just had a bad install. people tell me i sound clearer than the pots phone
MySpareBrain

join:2000-06-12
Pearland, TX
·Comcast
·AT&T U-Verse
·Vonage
·AT&T Yahoo

Re: comcrap is still too expensive

said by Geminimind See Profile :

I quess it depends on the area and the network or you just had a bad install. people tell me i sound clearer than the pots phone
I'm not sure but after 3 different techs coming out on 3 different days, and no one could figure it out, I gave up.
reelbigfish

join:2002-06-06
Boston, MA
Actually, I'm not locked into a contract with Comcast Digital Voice and it is costing me $33/month. With Vonage, if you cancel in the first year, you have to pay $40. Vonage says no contract, but there really is in the first year.
rradina

join:2000-08-08
Chesterfield, MO

said by pokesph See Profile :

when i can get a POTS line, including LD, for under 10 bux a month, why on earth would I want to pay $33 - 60 a month for a shady, not always working VoIP solution..

Now I may order one when, and if, the prices come WAY down.. like to 15 bux a month or so, otherwise, I'll stick to my tried and true POTS line for now.
Why would you want $15/month VOIP when your POTS is less than $10/month with LD? It doesn't make sense. I have a hard time believing your price for POTS unless local calls are metered and the LD plan is something outrageous like $1/minute.

Geminimind
Premium
join:2003-12-20
Sacramento, CA

Re: comcrap is still too expensive

he must have a special plan cause my pots was over $40 with ld and features at least with CDV they don't charge for features

SparkChaser
BURY BECK
Premium
join:2000-06-06
Downingtown, PA
·Verizon FIOS
·Comcast

said by pokesph See Profile :

when i can get a POTS line, including LD, for under 10 bux a month,
I'd sure like to see a copy of that bill. Just taxes and fees from my Verizon is $15

--
"The only reason for time is so that everything doesn't happen at once." -Albert Einstein
Forums » Comcast Is The New VoIP King


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