Vonage is expected to file for public status any day, and it may just rival the hoopla that surrounded Google’s IPO. Vonage is one of the biggest providers of VoIP (voice over IP), taking a large share of the market.
The biggest concern right now amongst investors is whether or not Vonage will truly perform due to the overwhelming number of competitors (Vonage’s share of the market dropped from 60% to 30% this year). Cable and other telecom giants pose a large threat to their business. Just do a Google search for ‘VoIP’ and you will see what I mean; there are currently 1,110 VoIP service provider. Number of subscribers to VoIP by 2009 is expected to reach 28 million.
There is most certainly some money in the space, but ask a colleague of mine and he will tell you that Vonage provides terrible service. According to him he couldn’t get through to customer service and when he did he couldn’t get through to their inept staff. To make matters worse there has been recent concern about the inability to dial emergency numbers from VoIP. There was a law suit that accused of Vonage of being negligible but Vonage claims to have made the ‘inability’ extremely apparent in their packaged materials.