VoIP Provider Vonage Planning IPO?

SixDimensionalArray writes "The rumor mill is exploding with stories that large voice-over-ip (VoIP) provider Vonage is planning an initial public offering to raise nearly $600 million. This information is interesting coming out not long after Google's recent release of Google Talk, which overs instant messaging/VoIP services PC-to-PC as well as a surge in marketing by VoIP providers such as Covad and Skype. Could this be yet another bubble?"

Comments

Lots of money to be made

[Eightyford]

The telecommunications industry is huge, and there is a ton of money to be made. That being said though, it's so easy (comparitively) to get into this business that it would be foolish to invest in a single company. I think it will be just like what happened to AOL. People will go with the cheaper provider eventually, and there is just too many competitors (there will be many).

Certainly a bubble

[jaredmauch]

It's the same as the DSL rush in the late 90's, the ILECs will win.

They can easily convert everyone to unlimited plans and put the domestic LD carriers out of the voice business. There's just so much profit to be milked out of $.25/min in-state calling that it's hard to justify dropping the prices since people are willing to pay it.

Vonage and others will face the same challenge others have seen when fighting the ILECs.

Re:TechCom and the future

[ninjamonkey]

He pointed out previous advances in communications technology anymore - specifical AT&T - anyone remember what the second T is? American Telephone and Telegraph - who uses a Telegraph anymore? Exactly: NOBODY. VoIP is the infancy of the next generation of communications technology - not a bubble.

When people speculate on whether VOIP will become a bubble in this context, I think it's referring more to the over-valuation of the stock at IPO.

I don't think anyone argues that VOIP technology isn't the future of communications, though, and may be worthy of long-term investment.