The crows have come home to roost for Vonage. The company has admitted that it has no workaround to navigate past Verizon's patents, and that such a workaround may not even be feasible. Interim CEO Jeffrey Citron has declared that one of the first belt-tightening moves will be to axe former CEO Mike Snyder's dot-com era marketing programs. Customer acquisition costs have ballooned to $306 per subscriber in the most recent quarter.
Old-style telecom business model + new technology = incremental improvement, not disruption.
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I think that's a tenuous argument. Arguably, the public interest is served if they can continue to service their existing customers. I'd imagine they could be profitable with a reduction in marketing expenditures, also. Which would imply to me that if they want to grow they either have to license Verizon's tech, or find a workaround. My bet's on the license.
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