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How not to grow your VoIP business
Etrade during the dotcom boom would pay new clients hundreds of dollars to sign up for a new stock trading account. The reasoning was that otherwise the company would have to pay an equal sum on traditional marketing to lure in new clients.
Vonage should consider adopting a similar strategy, now that the company's customer acquisition costs have jumped to $306 for each new account. At $25 per month, the company will suffer a loss on every client that cancels his account within one year – not factoring in maintenance, network traffic and customer service costs.
Instead of spending hundreds of dollars on television commercials and seedy adware banners, Vonage might just as well pay new subscribers $200 for a two year commitment.
The provider doesn't seem to have much choice. Deep pocketed providers such as cable provider Comcast have kicked off an aggressive VoIP offensive that makes Vonage look pale by comparison.
(disclaimer: I cancelled my personal Vonage account earlier this year after the company claimed it would take 1.5 months to port over my number to a competing service)
February 22, 2007 at 11:05 PM | Permalink
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VoiceGuard Solution for VoIP Anti-Blockade
1. Overview
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SpeedVoIP is a leader in circumventing VoIP blocking imposed by ISP or Telco. For vision of Net Neutrality, VoiceGuard is created to address a growing number of ISPs who either degrade or block voice services over their networks. VoiceGuard gives choice back to the subscribers or customers of ITSP.
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VoiceGuard Solution for VoIP Anti-Blockade
1. Overview
Yahoo messenger, Skype, Microsoft Messenger and Vonage offer a subscriber the ability to "call" someone using Softphone/Gateway ATA/IPPhone/IAD. However, several ISPs are blocking or degrading this service in order to force a consumer to use a ISP sponsored service. States such as the UAE block this technology outright while US corporations, such as Clearwire, claim that they might degrade the quality of competing services by adding choppy and delayed services.
SpeedVoIP is a leader in circumventing VoIP blocking imposed by ISP or Telco. For vision of Net Neutrality, VoiceGuard is created to address a growing number of ISPs who either degrade or block voice services over their networks. VoiceGuard gives choice back to the subscribers or customers of ITSP.
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