Vonage, a leading VOIP service provider in USA & Canada is facing a lot of heat lately. Vonage really had a tough 2007. They had to freeze new signups in USA and now US courts ruled against vonage in a 2006 USF charges case. USF charges known as Universal Service Fund requiring telecommunications companies to contribute to a fund that supports service for schools, libraries, and rural and low-income households. When the USF charges were applied to VOIP companies in 2006, Vonage went to the court claiming that they won't pay such charges since it should not be applied to VOIP companies. They didnt want VOIP companies to be treated as traditional PSTN telecom companies. However the court has ruled against Vonage, so now it seems they will have to pay USF.
I guess vonage will now keep quiet and play safe. They already lot of trouble to clear up. I wonder if these charges will be passed on to the consumers or will be absorbed as operations cost. It will be really way too much to absorb as cost. That means, its highly likely that Vonage will increase the cost for new customers. That would definately make it more unattractive for consumers in USA when they are looking for a deal.
Recently, there are new VOIP companies trying to get the hold of the market share. Companies such as PhonePower or Lingo or Comcast are offering some unbelivable offers to customers. Vonage will have tough time competing with this new kids on the block. However Vonage Canada is doing pretty well unlike their US counterpart. Vonage can hope to do well in the canadian VOIP market.
0 comments:
Post a Comment