29 March 2007

The ongoing patent dispute between Verizon and Vonage signals the looming end of independent Internet phone providers as a major force in the residential voice business, market research provider Pike & Fischer concludes in a new report.

The two companies have been locked in a lawsuit over the use of technology that connects Internet phone calls to traditional phone lines, and Vonage faces similar complaints from other companies -- including Sprint. Publicity over the patent disputes will leave many customers skeptical about the future of Vonage, a company already suffering from slowing subscriber growth and ongoing financial problems, Pike & Fischer says in its analysis.