Vonage confirms it has no 'workaround' for Verizon technology

20 Apr 2007

Troubled US IP telephony provider Vonage has confirmed that it has no ‘workaround’ plan in place to sidestep Verizon’s patented IP technology, and adds that it doubts whether such an option is even ‘feasible’, given the latter’s comprehensive list of patents. The admission, submitted to a federal court today, is an unwelcome one for Vonage which is accused of infringing Verizon’s patented technology. In its filing the company said: ‘While Vonage has studied methods for designing around the patents, removal of the allegedly infringing technology, if even feasible, could take many months to fully study and implement.’ The statement is another blow to investors who have been hit with a series of pessimistic announcements from the firm. Vonage has seen its share price plummet 80% since it listed in 2006 – it has experienced a 45% drop this year alone – and last week its CEO Mike Snyder resigned without warning leaving the company’s chairman and chief strategist Jeffrey Citron to hold the fort until a replacement can be found. However, even if Vonage can hastily design a workaround it fears it could struggle to retain customer loyalty, goodwill and the loss of revenues this will cause. ‘Current Vonage customers will not wait that long for restored service,’ it writes. ‘Likewise, potential new customers will not even consider Vonage.’

United States