Vonage deal with VoIP Inc is not for a work around
Filed in archive Companies by gautam on April 06, 2007

but it set a path of confusion that this deal was struck to ward off Verizon which is circling its head ominously. This caused Vonage to step in and clear the air of confusion surrounding the deal. Brooke Schultz, spokeswoman, Vonage stated:
The deal, mentioned in an 8-K form filed by VoIP Inc. with the Securities and Exchange Commission on March 28, is a standard network termination deal. VoIP Inc. is not providing technology to Vonage. We're simply dumping minutes onto their network. It's no different than any other carrier partnerships that Vonage has with companies such as Level 3 or XO Communications. We've had dozens of these partnerships for years.
This caused many of us to speculate that the deal was an alternative solution to ward off Verizon. Our sincere apologies on this issue. Now the focus shifts on whether Vonage will get a stay on the issue so that either it gets time for workaround or appeal or even work out on a pact with Verizon on the issue. Vonage has been consistently harping on innocence on this issue but the final decision rests with the honorable court, isn't so?
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