Not Such Great News

Though it isn't yet clear how serious Verizon's patent infringement case against Vonage will turn out to be, it is hard to see how it is positive, overall, for any service provider targeting the VoIP replacement market as an "over the top" basis. We would assume that cable operators have not chosen implementations Verizon thinks infringing. At the very least, the royalty payments now impose a revenue drag of about 5.5 percent of revenues, if the judgment stands. Vonage still has the single largest number of VoIP subscribers, according to TeleGeography, but what that asset will be worth is just slightly more open to question.