Sunday, July 22, 2007

Vonage - Fifth wheel loses a leg

Vonage (VG) reached a new all time low this week. This comes as competitor SunRocket suddenly ceased operations.

Voip-only providers are the fifth leg of the telecommunications industry. In order to use their services, you must have a broadband internet connection. You would generally get broadband internet service from your cable or telephone company, who usually offer voip telephone service. Most offer this as part of a package, with rates competitive to even the most aggresive voip-only provider.

Why does Vonage exist? They must still have some IPO money left over.

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