Times are tough for Vonage right now as they struggle to gain new customers. During the second quarter of this year, Vonage only signed up 2,080 new customers compared with 56,691 from the same quarter last year. Their struggles boil down to a lack of advertising cashflow, as well as what we can imagine a tremendous competition increase.
There was a time when Vonage’s snarky commercials filled the prime time airways but that was before the company was ordered to pay $80 million to Sprint. Then throw in new competition from almost every cable provider, along with T-Mobile now too, and it’s easy to spot their troubles from a far.