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Monday, June 19, 2006

Vonage: Verizon's latest target of "fear uncertainty and doubt"?

Verizon apparently has sued Vonage for patent infringement related to certain Verizon patents on VoIP-related services.

We suspect this move is as much about Verizon creating "fear, uncertainty, and doubt" for Vonage and its shareholders as anything. This blog has been no great friend to Vonage, but come on, Vonage has been doing business basically the same way for years. We find it curious to say the least the Verizon held its lawsuit until now.

We'll be interested to see if Verizon goes after other providers, like SunRocket, 8X8, Comcast, Level3, Net2Phone, and AT&T for that matter. If Vonage is really infringing, countless other service providers and possibly equipment manufacturers must be too.

Verizon has a history of using the legal and regulatory process to disrupt its competitors, and that may be what's going on here. Remember when Verizon scared the FCC into sticking Nextel with an extra BILLION DOLLARS in fees as part of its spectrum reallocation? Bummer.

If you get in Verizon's crosshairs, watch out. They have a ton of money, and huge number of underutilized lawyers ... a poisonous synergy, to say the least.


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