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Mark Evans

the blog - examines the world of telecom  and  technology  from  a distinctly Canadian perspective.

the person - lives in Toronto, CA with  his  wife  and  three children, and  works  as director of community with PlanetEye Inc.
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Re: Vonage Canada: Subscriber Mystery Solved
by Anonymous
Mark, You have the right concept, but not the right answer. Assuming the revenue per user for the Canadian service was $27, then the average number of customers for Q1 would be 52,000. However, the average for the quarter will be less than their current subscriber base. If Vonage Canada finished 2005 with 40,000 subscribers (a crude estimate that assumes smooth growth throughout 2005 to get an average of 23,000 for the year, with very few to start the year), it would have grown to 60,000 to 65,000 by the end of Q1 (and would be growing by up to 8,000 per month). On the other hand, the $27 (US) average revenue is for all subscribers. The Canadian average could be higher (given that prices in Canada are higher). This would reduce the average customer number -- to 45,000 assuming the revenue per user in Canada was closer to Vonage's older US number of $31. The information Vonage provides (as limited as it is) implies they were somewhere close to 60,000 (+/- 10%) as of the end of March. Continued growth would bring them over 70,000 today, and possibly in the 80's.
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My blog has moved. Check out the new Mark Evans. It's part of my mini-blog empire that also includes All About Nortel and Twitterrati. You can subscribe to Mark Evans Tech by clicking on the RSS symbol above.
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