Vonage (NYSE: VG) thinks the answer to its ongoing recovery will be found in new devices including Apple's iPad device. After hitting a rock bottom low last year when it stock plummeted to 33 cents, Vonage is now trading at more than $2 and even saw a profit in Q4.
Marc Lefar, the former AT&T executive who helped broker an exclusive deal for the iPhone, according to a Bloomberg article, already has put together an application for the iPad and is looking at other devices. In addition to voice, Vonage said it can add video and messaging to its VoIP service.
"Our legacy is one of replacing the home-phone service and giving it enhanced features," he said. "We've got plenty of additional work to do to get the business growing."
Although Lefar would not say what companies he's talking to about establishing new applications, Vonage is getting serious about expanding its service profile. One move Vonage has gone public with is the appointment of Amichay Oren as VP of research and development, who brings his experience in new service creation to the company.
Still, as a standalone VoIP service provider, Vonage does face the ongoing challenge of staying viable at a time when more and more consumers are cutting their landline cords for a wireless phone. "The inherent risk, though, is how long does our industry need standalone voice-over-IP providers. More and more people are cutting their landline," said Zeus Kerravala, an analyst at the Yankee Group.
- Bloomberg has this article
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