Vonage Subscribers Go AWOL, Shares Plummet
August 5, 2009
Shares of Vonage plummet on news that the company posted a profit that is largely due to reduction in expenses. Perhaps troubling investors is the fact that Vonage's costs per subscriber are higher and the number of customers is on the decline. Still, the company seems to have a healthy subscriber base of 2.5M "lines". While the referenced article attributes customer decline to mobile, I suspect it might be MagicJack ($20/yr) or Skype ($36/yr), both of which are substantially lower than Vonage ($300/yr).