Patent Litigation to Crush Independent Broadband Phone Services, Report Predicts

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.

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