How not to make money in telecom

A jury ordered Vonage to pay $58 million in a patent infringement case brought by Verizon. But that’s okay — Vonage already “reported a net loss of $65 million for the last quarter.” It will just pay the damages by making it up in volume.

UPDATE:  It gets worse.

2 comments

  • craig mclaughlin

    “It will just pay the damages by making it up in volume.” Ah, the dot com business model. Seriously though, any notion how big a hit this is for Vonage– if they’re already losing money mightn’t this send them into bankruptcy? And if so should we care? (I’m leaning towards a no on that last one)

  • “In the unlikely event the monetary award ($58 million) and royalties are ultimately upheld/paid, they will not jeopardize Vonage’s financial position as we focus on achieving profitability,” the company said in a statement.

    http://news.yahoo.com/s/nm/20070309/wr_nm/vonage_outlook_dc_1