Yesterday’s tragic bomb blasts resulted in overloaded cellular and landline voice networks as Londoners used their phones to contact family members, friends and business colleagues. Major carriers reported call rates at more than double the usual volumes, which led to service delays and bandwidth reductions. VoIP systems, on the other hand, weren’t affected by the increased network traffic volumes, according to UK carriers.
That Vonage is pouring money into advertising in an effort to attract customers and raise its profile isn’t news. What is interesting is that as Vonage reportedly spends about $10 million each month to add some 15,000 new subscribers, it is still lagging behind Skype in terms of both usage and public perception. One estimate finds that at its current spending rate, Vonage is paying about $400 for each new subscriber it acquires. At that pace, in order to simply to break even, Vonage will need to retain each of those customers for about 2 1/2 years. Therefore, Vonage’s VC investors must hope that the company is on the verge of releasing some type of technological or strategic breakthrough that will allow it to cuts costs and leap far ahead of its competitors. Otherwise, it’s uh-oh, oh, oh, oh.
For more details on Vonage’s marketing strategy:
– read this KarnellKnowledge blog entry