Friday, May 26, 2006

VONAGE IPO... what happened?

so the IPO came... 31 million shares were sold.. $531 Million were raised..2 days later share prices took a dive of almost 24% so what happened..?
Free skypeout is what happened.. Skype released the news of their promotion a right before it this did not help the existing skepticism by investors on Vonage's model to acquire a customer which is the highest in the industry. Did you think all those yahoo ads are free?
apart from skype.. you got tons of competition from the wireless side..each day there are thousands of people dropping their home line and just keeping their cell phone...Quality of service is another.. My parents switched both their lines to Vonage and Ive been getting complaints from them.. last time i checked I wasnt getting paid by vonage for support?
Competition from other vonage wanabes..theres sunrocket..lingo..packet 8..the list competition for a very similar service at prices sometimes lower isnt helping is my suggestion...NeW FEATURES! even though vonage has some great features like follow me, the softphone and wifi phone amongst others...there is still room for sooo much more applications they could be selling and they already do a good amount of marketing.. they havent released any amazing must have features.. anywho I wish them the best and hopefully they can get their stuff together.. and if they wish to hear some of my feature ideas..feel free to email me..I expect lots of options though :)