It's interesting to see how the FCC may force U.S. VOIP service providers to offer access to 911 given Canada's telecom regulator has already implemented this policy. So far, 911 has been the most pro-active thing the Canadian Radio-television and Telecommunications Commission has addressed with VOIP. That will change, however, on May 12 when the CRTC hands down its much-anticipated ruling on whether to regulate VOIP. The 911 decision came out a couple weeks ago - a decision that left the small players gnashing their teeth while larger players simply looked at it as the cost of doing business in Canada.

Mark Evans
Financial Post

Amid all the hype surrounding the emergence of Internet telephony, there has been a missing element: a flurry of initial public offerings.
This is an interesting situation given IPOs were a dime a dozen during the dot-com boom when many companies issued equity based on a sexy idea or soon after signing their first customer.
The most blatant example of a company still sitting on the sidelines is Vonage Holdings Corp., which is raising another US$200-million of private equity rather than do an IPO.
Perhaps the simplest explanation for the dearth of IPOs is the unfriendly ...   more »

All I can say is "wow" in light of Vonage's plans to raise another US$200-million of private equity. (This brings Vonage's financing tally to more than US$400-million) The convertible offering has been sold to 22 investors, including Bain & Co. So why the need for so much cash given the company raised US$105-million last year. For one BusinessWeek believes Vonage is spending US$9 million to US$12 million a month on market to attract new business. If Vonage stopped all marketing activity, it would be cash-flow positive and, perhaps, profitable. The reality, however, is Vonage is in the midst of a high-stakes race to establish itself as the consumer VOIP service provider before the cablecos rumble more aggressively into the market. As a result, it can't afford to stop spending heavily for fear of losing momentum. So why a private round rather than an IPO? Perhaps the biggest reason is you don't have to tell anyone every quarter how you're doing. By staying private, Vonage can spend whatever it wants without being scrutinized and questioned by investors and analysts. Still, it's disappointing - at least for the time being - to not see how Vonage would have been received in capital markets that could best be described as choppy.
Forpeople who read my blog on a regular basis, I've been talking about the VOIP IPO market for months - trying to get a handle on who's out there and why they're not willing to make an offering. In today's National Post, I've got a story looking at why VOIP IPOs are not happening.