Vonage turns to VoIP Inc.

In a surprise move, parasitic VOIP provider Vonage, battling VZ patent injunctions, turned to a competitor - VoIP Inc. VoIP Inc. owns some VoIP patents as well as some network - unlike say Vonage. Even though VoIP Inc. is publically traded details of the agreement were scarce. Telecomweb has the details here:

Of course, that means Vonage now has yet another expense on its hands at a time when it can ill-afford any new outlays. Even if the ploy of using the VoIP Inc. network works, it still may have to pay Verizon $58 million for past patent infringement -- the amount ordered by the jury. And it's still facing at least one more patent fight with Sprint along with potential class-action lawsuits from investors in its IPO who are angry the shares have fallen off a cliff (the were trading today at around $3, down from $17 at the IPO last May).....Added to that, in its latest financial report Vonage admitted that the pace at which its picking up new customers has slowed down, and its cost for acquiring each new customer now tops the $300 mark (TelecomWeb news break, Feb. 16).

In the same article, Citigroup who underwrote the Vonage IPO says that in less than 2 years it will be BK.