Telecompetitor Arches

Vonage on Life Support?

It’s one thing to lose a patent infringement case, quite another to be given two weeks to stop using the technology behind the patents. Oh by the way, the technology in question is fundamental to Vonage staying in business – interconnecting with the PSTN. It appears as if Vonage has two choices; they can develop a technology ‘work around’ of the patents, or they can try to negotiate with Verizon to license the technology. Good luck with the latter. Something tells me that Verizon is not interested in throwing Vonage a lifeline. The former isn’t exactly the preferred method either. Two weeks seems a little quick to get the job done. Of course Vonage could get a stay, and delay the court ruling.

It’s an interesting strategy by Verizon. On the one hand they stand to squash a competitor. But on the other hand, is it the right competitor? One could make an argument that it is in Verizon’s best interest to keep Vonage around for a while, because they put pressure on Verizon’s real rivals, cable MSOs. By potentially eliminating Vonage, are they creating a VoIP windfall for cable?

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