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Article: Vonage IPO: Too Little, Too Late?
- Article from:
- TelecomWeb News Digest
- Article date:
- February 9, 2006
CopyrightCOPYRIGHT 2006 T3i Group LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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VoIP maven Vonage filed preliminary IPO papers with the Securities and Exchange Commission (SEC) indicating it will seek only $250 million - far less than expected. The filing was a double-edged sword, forcing Vonage to reveal just how deep in the red it really is, so while some folks breathlessly talked of another opportunity to make millions, a la Google, a flood of analyses have found Vonage's strategy wanting.
In its filing, Vonage was forced to disclose some pretty stark numbers, including increasing losses despite an increasing subscriber base. Average revenue per user (ARPU), it admitted, is falling. Competition, it said, is increasing: from the ...