Vonage Wins Permanent Stay in Verizon Case
kamikaze-Tech writes "The US Court of Appeals for the Federal Circuit in Washington DC today issued Vonage a permanent stay of a previous court's injunction that would have barred it from signing up new customers. Vonage sought the stay following an April 6th decision by the US District Court in Alexandria, VA enjoining the company from using certain VoIP technology to add new customers."
The problem is that Vonage is relying on Verizon's infrastructure (DSL, PSTN) in order for their business to function. If it wasn't possible for people with Verizon DSL to use Vonage or to call a Verizon PSTN customer from Vonage, Vonage wouldn't have a product.
This is like buying your hamburgers at McDonalds and selling them at a discount from a cart in the parking lot. OK, so McDonalds made a deal with you to sell you the burgers at a big discount because you bought so many. Well, at some point they will notice what you are doing and stop. And like Vonage and Verizon, when the supplier pulls the plug, it's over.
This is what happens when you build a business model leeching off of an established supplier. The established supplier hates you and will do just about anything to get rid of you. It's not like Vonage has a product that can exist independently of Verizon or any other existing telecom company. We have seen this business model go down several times in the past 10-20 years or so and while it is a fun ride for the investors, it has no staying power.
Vonage is going down, it is just a matter of time. If they can't be shut down with patents, they will be shut down by some other means.