This article on TechDirt sums up the dismal situation of Vonage very well and the outlook for the company is not good.
Despite the complaints about Vonage’s service it would seem that the unhappiness quotient of their customers is less than that of, say, the customers of the big telcos but that’s not the real problem. The real problem is that Vonage simply made bad decisions about where the market was and where it was going and then tried to paper over the cracks in an effort to salvage a business that started to look like it wasn’t going to be the rocketship management was aiming to build. The reasons for Vonage predicament are simple: Poor strategic planning and lousy tactical execution. The responsibility for this can be laid solely at the feet of the company’s management. Bad luck is excusable. Bad management isn’t.
