VOIP Gets Another Hit

Vonage, one of the leading VOIP providers, has been knocked a hard blow. A court recently granted an injunction to Verizon against Vonage that prohibits the VOIP provider from using technology a jury recently found infringed on Verizon’s patents. Vonage is not giving up without a fight. It hopes to be able to win a stay in another upcoming court battle.

The trouble that Vonage has been facing in court is also reflective in the troubles that VOIP has been facing in general. Although the technology is top notch, the revenue is not so much. Companies that are offering services – at least initially – for free are finding that when fees do become necessary, the customers are returning to the other services that they are more comfortable with using.

It doesn’t help that VOIP does not have the networks in place to provide consumers with a quality, reliable service that would entice subscribers on its merit alone. This would require a large investment from providers, and with the revenue future not looking much brighter it is unlikely many (if any) companies will make the investment.

VOIP is on the verge of becoming more of a fun side kick than a series contender in the communications industry. Until providers focus on the needs and demands of the consumer, they will not be able to draw them away from their comfort zone and push the profit lines upwards.