Paul Kapustka thinks Vonage may be the winner, in a weird sort of way from the FCC’s decision to implement E-911.
Industry insiders estimate Vonage will have to spend $60 million just to get E-911 up and running and about two million a month to keep E-911 working for their customers.
While Paul thinks this is a victory of sorts and that Vonage will be the winner over the other VoIP providers in the USA.
I politely disagree as the cost and added burn rate to Vonage is a burden they and the other early stage companies all have, which companies like AT&T, Verizon and the cable operators don’t have. If Vonage and the other newcomers have not factored te expenses into their budgets, then their previous multi-billion dollar range valuation are likely to flatten faster than the dot.com bubble.
As a matter of fact all of this and what follows speaks directly to the valuation of VONAGE and other VoIP players who have to either buy or build E-911 capability into their system.