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

[John Lange]

The business plan is likely to build up an impressive customer base and
then sell the whole company to a telco or other provider that wants to
jump start their own customer base.

Its not about making money, its about building up and then selling.

-- 
John Lange
President OpenIT ltd. www.Open-IT.ca (204) 885 0872
VoIP, Web services, Linux Consulting, Server Co-Location

On Tue, 2005-05-31 at 11:42 -0500, Bill Reid wrote:
> 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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> > 
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