News
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Vonage subscriber recruitment stalls
Internet telephone company Vonage Holdings Corp. on Thursday reported a much reduced loss for the second quarter as it scaled back marketing, but it also saw a drastic drop in new subscribers.The drop in recruitment means that Vonage is no longer the country's largest provider of Internet-based telephone service, a field it pioneered. Cable company Comcast Corp. reported 3 million digital phone subscribers at the end of the second quarter, surpassing Vonage's 2.45 million, an increase of just 57,000 lines from the first quarter.The Holmdel, N.J., company is struggling in court with another old-line telecommunications company, Verizon Communications Inc. In March, a jury found that Vonage infringed on three Verizon patents. The judge barred Vonage from signing up new customers, but that decision has been stayed while an appeals court considers it.On Thursday, Vonage said it had"substantially completed the deployment of workarounds"for two of the patents, and has developed a workaround for the third one."This is a significant step toward moving ahead with our business in the wake of the Verizon litigation,"said Vonage's interim chief executive, Jeffrey Citron, in a statement.
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