New triple-play strategies from telcos and cable operators, particularly those that offer voice services for free as an element of a voice-video-data package, will prove catastrophic for US-based Vonage. Following 'one of the worst IPOs in recent history' plus a projected $330-million loss by year's end, Pyramid Research says Vonage may well be on its way to its death if it does not cough up enough cash in the next two to three years to beef up its offerings. With voice becoming increasingly cheap, Vonage has to move beyond voice to more lucrative forms of digital content. As this is unlikely to happen, the chances of Vonage surviving appear slim, Pyramid Research says.
The Demise of Voice Pure-Play: Is Vonage Toast‾