Incremental business models vs. disruptive
The crows have come home to roost for Vonage. The company has admitted that it has no workaround to navigate past Verizon's patents, and that such a workaround may not even be feasible. Interim CEO Jeffrey Citron has declared that one of the first belt-tightening moves will be to axe former CEO Mike Snyder's dot-com era marketing programs. Customer acquisition costs have ballooned to $306 per subscriber in the most recent quarter.
Old-style telecom business model + new technology = incremental improvement, not disruption.
April 16th, 2007 at 2:19 pm
Vonage : “We have no work-around”
The judge does have the \”public interest\” hook to hang a stay on (and 2 million subscribers validates the public nature of this legal process) but beyond that temporary legal respite, Vonage are going to have to do something to stay alive.
April 16th, 2007 at 2:34 pm
I think that’s a tenuous argument. Arguably, the public interest is served if they can continue to service their existing customers. I’d imagine they could be profitable with a reduction in marketing expenditures, also. Which would imply to me that if they want to grow they either have to license Verizon’s tech, or find a workaround. My bet’s on the license.