[*] Om Malik ¹s Broadband Blog » Vonage Scary Big Spending Ways

[Ron Dallmeier]

At least they can stop the hemorrhage whenever they choose. It is only an ad
campaign. It also comes down to how much their stock value is impacted by
how many subs they have. If the market decides that a sub is worth more than
$400, it might be worth it. Bill is right, however, that the value of a sub
should be somewhat based on the expected future profit from that sub. Subs
in the telco and cableco world are valued much higher (as high as $2000 ea)
but this is based partially on average revenue per sub being much higher and
the anticipation of future services (TV over DSL, VOD, and voice over cable)
Considering there is very little to differentiate voice companies other than
service, branding will be a big deal. I would guess that is what Vonage is
banking on.

...Ron

On 5/31/05 11:14 AM, "Bill Reid" <billreid at shaw.ca> wrote:

> http://gigaom.com/2005/05/28/vonage-scary-big-spending-ways