AT&T losses are bad news for Vonage
- TAGS:AT&T, Nortel, patent suit, VoIP, Vonage
- IT TOPICS:Internet, LAN/WAN/Broadband/Wireless, Networking
Yesterday the stock market took a nose dive, largely because AT&T announced that record numbers of its phone customers were unable to pay their bills. One of the biggest losers, though, may be Vonage.
Vonage, after all, has built its business on cheap phone service. Presumably, people shopping for the cheapest phone service are those who are closer to the financial edge. And if that's the case, then Vonage may see similar numbers to AT&T.
As I wrote a few days, ago, Vonage is already suffering significant customer losses. If its customers are having a hard time paying their bills, this could be even more bad news.
That being said, Vonage does have one minor piece of good news --- it settled its patent suit with Nortel, and won't have to pay damages. That puts the last of the big suits behind it. Still, Computeworld reports that total Vonage payments for the suits could reach $239 million, a problem for the cash-starved company.
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