Vonage Users: Drop or Hold?

Sat Apr 14, 2007 9:17AM EDT

See Comments (27)

Is it just the products that I choose, or is every high tech product involved in patent infringement suits? About a year ago I bit my nails as I awaited the fate of my BlackBerry. RIM, maker of the BlackBerry, was sued for patent infringement and paid $612.5 million to the plaintiffs in order to continue operating. (I have no doubt that I've absorbed some of these costs, but I still have my Blackberry so I'm a happy camper.)

Now, it's Vonage's turn. And I'm right there in the hot seat again (along with 2.2 million other subscribers whose service may be threatened if Vonage loses its latest court appeal).

The Story Thus Far

Last month a jury found Vonage guilty of patent violation for three patents held by Verizon. The suggested remedy? Vonage would pay Verizon $58 million plus ongoing royalties for violating the patents. (I've always had my doubts about whether juries are qualified to understand patent suits, but hey, that's what's made America great.)

The judge later ruled that Vonage should refrain from signing up any new customers to keep the company from continued infringements. That decision was appealed and there's been a stay, pending appeal. If Vonage loses these appeals or doesn't reach a settlement, then service could be interrupted.

Today on the company web site, a brief message informs you that it's business as usual. They're still signing up new customers. If you're a believer in the Patron Saint of Lost Causes, then by all means, go sign yourself up.

Meanwhile, over at Ars Technica, they report that Vonage stands ready with a work-around solution to avoid the patent infringements.

Whatever else you say about Vonage, I think everyone can agree that the feisty company planted the flag in the VoIP space, making VoIP an alien-sounding, but nonetheless household word. Vonage's colorful past includes:

  • Silly and outrageously expensive TV commercials and campaigns;
  • Absurd marketing costs (the financial report says it spent $275 per customer on acquisition);
  • A disastrous attempt at becoming a public company; and
  • A patent-infringement law suit.

Plus, my Vonage service lately has woefully degraded to the point where I start conversations saying, "I'm a VoIP user, so you may have trouble understanding me."

The question for Vonage users: Do we stay or do we go?

My guess is that Vonage is going down for the count. In all likelihood there will be an untenable financial burden placed upon the company when this legal ruckus is over. My second guess is that other small VoIP players like SunRocket and Packet8 will begin to tumble as strong-arms like Verizon entice us with all-in-one solutions offering us VoIP, data, and TV services for a single low price.

Still, the eternal optimist, I'm going to hang on to my Vonage service until the death knell and see how it plays out. After all, I'm still using my BlackBerry. What about you? Are you going to fight or switch?

 

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Comments on Vonage Users: Drop or Hold?

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  • 6 Posted by mydustymusic on Thu Sep 3, 2009 7:31PM EDT Report Abuse

    My son uses Vonage down south and his calls come through clear as a bell and he loves it. He's had the service for a little more then three years now. He said he will keep his service to the bitter end. After that time he will be checking out Verizons voip, called VoiceWing. The price is the same and I hope that there are no other issues with their services.

  • 7 Posted by tkfendersn on Thu Sep 3, 2009 10:12PM EDT Report Abuse

    I simply love my Vonage service. I've been a customer now for nearly 2 years. Things were rocky at first, but over the last year and a half it has been FANTASTIC. I'd had it with all of the junk fees from Bellsouth, and if I didn't need a high speed internet connection from Comcast in order for Vonage to work, I would can them just like Bellsouth. I hope that Vonage is able to pull through because otherwise, the sky is the limit with what Verizon would do with pricing.

  • 8 Posted by woodcutters on Thu Sep 3, 2009 10:49PM EDT Report Abuse

    vonage is portable (you can plug your box in anywhere that has highspeed). cable phone, and verizon keep you tethered to there wire. there is no comparison.

  • 9 Posted by twelvevoltduckman on Thu Sep 3, 2009 10:25PM EDT Report Abuse

    I've been with Vonage for over 2 years. Yes, VOIP does have its limitations, but it's worth the price since most of our calls are on our cell phones anyway. I checked out our cable company's phone offer. Found it wasn't 'real' VOIP - it uses their internal system to get to the PTSN. It's $5.00 more than Vonage for the base, but I knew it was the same old cable company when I started with the other fees, which included $4.50 a MONTH to have an unlisted phone number. I hope Vonage will survive, but I suspect they will be eaten by some white knight. I am staying put for now.

  • 10 Posted by mauromarzorati on Thu Sep 3, 2009 7:12PM EDT Report Abuse

    Just three connections from my house; water, electric and fiber optic, the Verizon FiOS kind. My phone company is Vonage, and will continue to be so. I'm not even contemplating the what if Vonage goes south; however should it go the way of the dodo I'll continue to have a non-traditional phone company.

  • 11 Posted by jcfriend79 on Thu Sep 3, 2009 4:30PM EDT Report Abuse

    I like very much my vonage service, about $30 with tax and my connection it's always clear as regular phone line, I can even call my cousin in France for free. I don't plan to leave vonage, if the ship goes down I'll try something else like asayedahmad said about Comcast Digital Voice for $33 a month, never heard but my cable is Comcast, so I'll do a little research.

  • 12 Posted by brianscrouch on Thu Sep 3, 2009 3:13PM EDT Report Abuse

    I am also a fan of the Vonage service I have received... I switched because Verizon was charging me $.15 a minute to call Bellevue from Botheck a city less than 6 miles away, while Seatac, another city 20 miles away, was local! Also, it's nice to know any call I make is not a toll call. I hope the new CEO is clever enough to find a way to avoid patent infringement. If Verizon wins this, consumers LOSE!! I am surprised more people haven't made the switch... I think its the technophobia that is keeping the average computer use from getting Vonage set up. I have had no problems and love getting my voicemail messages emailed to me.

  • 13 Posted by navatweb on Thu Sep 3, 2009 7:34PM EDT Report Abuse

    I love my Vonage service. I have three lines. One of the lines are used in India and two of them in the US. I can talk as much as I want to my parents and other family in India. And the call quality is better than landline! I wish Vonage well and hope they survive. I might go all cellular if the VOIP thing does not work out. If Vonage had a problem, other VOIP companies will have similar problems. I suspect this case will settle out of court.

  • 14 Posted by ytech_robinraskin on Thu Sep 3, 2009 10:58PM EDT Report Abuse

    Rumor has it that Sprint/Nextel may buy Vonage! http://dealbook.blogs.nytimes.com/2007/04/18/as-vonage-faces-potential-bankruptcy-deal-rumors-heat-up/

  • 15 Posted by blain_andrew on Thu Sep 3, 2009 3:09PM EDT Report Abuse

    I've had Vonage from the beginning and it has been a great run. As a consultant, I have the business plan with a phone line, 800 number and fax line (I got a fax about a year ago, I think). At the time that I switched from SBC (now At&T) SBC charged me $125 per month for the minimum service on a voice line, voice mail and a fax line. Every outgoing call was an astronomical charge including retrieving voice mail. I used my Verizon cell phone for most of my outgoing calls because it was less expensive. With Vonage, my monthly charges were less than half and my cell phone costs are way down because I call out on Vanage. And the business looks much more professional with the 800 number. It's not just the cost saving that I will miss if Vonage goes, it's all the other features that are so great.

  • 16 Posted by linas58 on Thu Sep 3, 2009 6:52PM EDT Report Abuse

    Why are you guys paying Vonage? You should look into Skype - basically the same VOIP, works great, and Skype has a plan: for $29 FOR A FULL YEAR you can make unlimited call phones to the US and Canada. I dont understand you......

  • 17 Posted by immrlizard on Thu Sep 3, 2009 4:23PM EDT Report Abuse

    I am also a Vonage customer and have been for about 3 years. I became one because of the shoddy service I got from sprint. I have a brand new house and was having constant buzzing on my line because they buried the phone line over top of the electric line. After 5 or 6 trips out to try to fix it they said that there wasn't anything that they could do for me. Each call I made to request help I told them what the problem was and they never corrected it. I have heard of a few people having problems hearing or having others hear the calls that they are making. I would look more to the "high speed" connection that you have if you are having these problems. In several states ISPs were purposely degrading the connections to cause these types of problems. Vonage took them to court and won. Shortly after, the ISPs in question started their own VOIP services. My advice for those using vonage is to buy good quality cordless phones or hook your system into existing phone lines. I haven't heard anything good about their phones that they offer. I haven't had one single problem with my system and if Vonage goes belly up, I will go to one of the many other voip services.

  • 18 Posted by morris.gatlin@sbcglobal.net on Thu Sep 3, 2009 7:26PM EDT Report Abuse

    I'M out. You get what you pay for. Terrible customer service, if you lose power you are dead in the H2O (as well as home security systems). You need a hard line to prevent loss of protection durning power loss. Yes the service is cheap, but depends on other services DSL (which is not cheap). When there's a problem, who's is it? the DSL company's or Vonage? You always have to call and walk through both! What a pain! There's too much to lose!!!!!!!!!!!!!!

  • 19 Posted by rogerwynn20714 on Thu Sep 3, 2009 8:49PM EDT Report Abuse

    i'm going to fight - I think my vonage service is great and had it not been for small upstarts such as this to challenge the staus quo we'd still be stuck in the rotary phone universe. I'll stick with them until they die

  • 20 Posted by robin_baker_uk on Thu Sep 3, 2009 8:46PM EDT Report Abuse

    I rely on my Vonage service to stay in touch with my elderly father in CA as I live in Turkey. I just bought the kit last time I visited, activated it at his house and brought i back to Turkey now I have Turkey CA at US rates. Unlike Skype or Yahoo etc etc I dont need a computer turned on all the time, all I have is my Voip adapter. I am praying they settle this and I can keep my service.

  • 21 Posted by smilevt976 on Thu Sep 3, 2009 9:28PM EDT Report Abuse

    enough with the bad aditude Robin, Vonage has provided excellent service and continues to. Vonage has returned my faith in companies providing a good product at a good price if they desire.

  • 22 Posted by unitic22 on Thu Sep 3, 2009 10:28PM EDT Report Abuse

    Let me echo the good service comments. Two years and not one problem. Every. Of any kind. I'm rooting for you, Vonage!

  • 23 Posted by bob.suzuki on Thu Sep 3, 2009 3:10PM EDT Report Abuse

    I heard that Vonage is good a service. If you are having trouble with it. Consider AT&T Callvantage. I been using it for more than 3 years now. I have not had one issue since a started the service nobody have notice that is VOIP phone, remember something, if you have a slow internet connection this will influence the quality of the call. I have 10 MBPS Cable connection, this helps greatly the quality of the service. Callvantage is one of the best if not the best service I have used in my life. Is 29.95+ tax. I pay 41.35 for 2 phone numbers including taxes. I was spending over 150.00 monthly before this a started using this service. including the internet connection a saved over $2,000.00 with the same quality and more advance features. Bob.suzuki

  • 24 Posted by caennor on Thu Sep 3, 2009 3:16PM EDT Report Abuse

    Northeastern United States customer for a very long time and never a single issue. If anything, it is better than my Verizon service and Vonage doesn't look for ways to nickel and dime me until I am bankrupt. If Vonage goes down, I will not have a landline. I refuse to return to Verizon's poor service and high rates.

  • 25 Posted by ytech_robinraskin on Thu Sep 3, 2009 10:58PM EDT Report Abuse

    Update to the Vonage saga. They won their appeal to the US Courts in which they asked to be allowed to continue to sign up new customers while they appeal the patent infringements. A good sign for Vonage users. For more see the Wash. Post story http://www.washingtonpost.com/wp-dyn/content/article/2007/04/24/AR2007042400954.html

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