Vonage: Above Water, but for How Long?

Aggressive cost cutting helped Vonage eke out a narrow profit in its second-quarter results. Still, I believe the earnings news is a last hurrah rather than a sign of things to come.

How can Vonage stay afloat in competitive sea roiled by triple-play cable MSOs and telecommunications carriers on one side and voracious wireless operators on the other? The latter, in particular, are mercilessly eating into Vonage’s subscriber base.

Vonage was a pioneer in bringing VoIP services to the masses. Barring a magical reinvention, it doesn’t have a bright future.

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