VOIP's $24,000 Question
Vonage Holdings Corp. (NYSE: VG) added 205,000 new customers during the third quarter -- and spent $254 to acquire each new customer. The company is saying is that it spent $52 million in three months time, just trying to convince customers to sign up for its service.
Put another way, the company spends $24,000 an hour just trying to convince customers to sign up for its service. If VOIP were truly a bargain, doesn't it stand to reason folks would be beating down the doors to sign up (and Vonage wouldn't have to spend so much)?
— Phil Harvey, VOIPY Editor, Light Reading