[*] Om Malik’s Broadband Blog » Vonage Scary Big Spending Ways

[Bill Reid]

Sean A. Walberg wrote:
> Sell it at a loss, make it up on volume eh?
> 

That only makes sense if the volume generates some other revenue like selling 
cell phones at a loss but make up on a 2 year commit and additional revenue from 
charges above the monthly fee.

I do not think this applies to Vonage. The only rational hope would be that new 
customer uptake increases so that the acquistion costs become reasonable.


>>Boy this seems like deja vu. Spending $400 to get a customer with no long term 
>>committment is hard to justify.
>>
>>http://gigaom.com/2005/05/28/vonage-scary-big-spending-ways
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