A View on View :: Vonage Hits 500K Subs

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Vonage Hits 500K Subs

by Mark Evans on Mon 07 Mar 2005 07:53 AM EST | Permanent Link

Hoping to make a splash as Spring VON kicks off, Vonage is poised to announce it has blown through the 500,000 subscriber mark. If the company can maintain its momentum - and doesn't suffer from any more embarassing network outages - its year-end target of 1M customers seems attainable.
So what do Vonage's subscriber numbers mean - other than sales are running at an annualized rate of about US$150M? For one, Vonage has a critical mass of users - at least in the U.S. From a strategic position, its easily the 'Amazon.com" of its market, and able to do an IPO when and if that day comes. It's also a more attractive acquisition target for anyone who has the appetite these days to spend $1.5 billion to $2 billion.
In Canada, Vonage is apparently doing well, although it is impossible to quantify because the company doesn't release actual subscriber numbers. If the Canadians market reaches the 250K customers target forecast by some analysts, my guess is Vonage will have 50K to 100K customers.

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Re: Vonage Hits 500K Subs

by Anonymous on Mon 07 Mar 2005 12:52 PM EST | Permanent Link

Does size really make it a better experience? OK: say Vonage has tons of cusomters.... it seems like they have upset a high percentage of them with technical and service problems. Something inside me says it is better to go with a smaller company that is focused more on customer support and quality, than on becoming huge via sales. Have any thoughts on that?

Re: Vonage Hits 500K Subs

by Anonymous on Wed 09 Mar 2005 04:23 PM EST | Permanent Link

How many companies have you started and run successfully based on "something inside" of you? ;) There is always a leader and lots of followers. First there was Yahoo! Then came along excite, lycos and a few other names... There's only 1 left...

It will be interested to see Vonage grow and how others attempt to grow along or attack their growth...

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