Vonage is buying Sonus gear in order to beef up their network. The argument being that this purchase is a direct response to their growing number of subscribers.
Bryan Richard in VoIP Magazine says;
Regardless of the funding source, Vonage is beefing up their infrastructure. Why? To bring their network more in line with possible buyers Sprint and AT&T (both Sonus customers)? Maybe. But whatever the reason, I hope it has nothing to do with voice.Exactly! We had been saying this for quite sometime now that it is going to be acquired right from the time it got fresh funds.
So, do we say either of Sprint or AT&T is going to acquire Vonage this year? (Yes, I do believe that by the year end, Vonage is most likely sell off.) Well, it is a pretty dicey call to make. It can be some other company than AT&T or Sprint; but having said that, I would like to place my bet on AT&T. They have been working on VoIP projects in 2005 like never before. Besides, AT&T needs a company like Vonage to do in the VoIP bazaar what it did in the traditional telephony bazaar as unlike the past with traditional telephony, the VoIP market is not an easy one to penetrate.
Anyway, Bryan’s article doesn’t talk much about this. It however deals with something really interesting. He rightly says that Vonage took on the traditional voice players with its VoIP and forced them to cut their prices and in the bargain got a really huge number of competitors who could offer much more in terms of services at even cheaper prices.
So, with the tie up with Sonus to beef up its infrastructure doesn’t really mean that it is doing all it can to improve voice alone as combating the growing numbers of competitors with just voice is not possible. He thinks that there is something more to it than what meets the eye.
The incredibly great story that Bryan suspects may be the sellout of Vonage or incredibly,- what I thought of before - may be on the verge of acquiring another company!
Thanks Bryan
