Verizon Destroys Vonage

For those of you who haven't heard, Verizon sued the internet phone giant Vonage for patent infringement regarding Verizon's technology over connecting internet placed phone calls to typical land line customers (so VoIP customers calling regular old land line customers). The US Court awarded the win to Verizon and Vonage was forced to pay a large sum in damages. On top of that, Verizon ordered Vonage to cease and desist any additional use of its technology, basically putting Vonage at a standstill.

Now, it appears that Vonage is up a creek without a paddle. They cannot find an alternate technology to solve their problem. What does that mean for you current Vonage customers? Well if you haven't already, I'd start looking for a different provider. Based upon a statement from Vonage, they lose about 2.5% of their customers every month which based upon the estimated 2.2 million customers total, is about 650,000 every year. Not good at all.

As quoted from the article:

Even if Vonage "was somehow able to implement a design around, and was able to ultimately prevail on appeal, it would have no hope of regaining its lost customers, or its lost goodwill, and its loss of revenue would be permanent and …"

The rest of the sentence was apparently removed due to "confidential materials".

[Source]