The Voes of Vonage

Just a quick mention of the Vonage debacle .. why ? because I get a kick out of under-handed tactics being exposed for what they are. The Citron vehicle is heading for certain legal disability as the VoIP pioneer has cornered itself with;
- a losing business proposition
- an alienated (EXPENSIVE) customer-base
- a class action lawsuit, from it's mom&pop investors (great publicity guys)
- a significant IPO scandal threatening to unravel into (yet another) SEC investigation for Jeff Citron (although he is no longer an active member of the executive committee - for that reason, perhaps?)

On the plus-side Vonage was the first VoIP service to take the challenge with the telcos. They fought a valiant battle and their marketing was definitely pointed towards the David v Goliath positioning that I am a great believer in. Too bad their acquisition cost is more than the lifetime value of their customer (Explain that one to your business school friends, mr CEO!)
Oh - and one other thing .. IF Vonage manage to escape the IPO situation without major upset .. they still have made significant coin to the original investors. You just have to get in before the suckers.
You gotta love capitalism..