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Jason Wood


Don't get me wrong, I think Vonage's strategy to offer IPO shares to customers was, at best, gimmicky, at worst, a very bad marketing and retention decision. But plenty of others are beating up on Vonage and championing how the KNEW it was a bum deal; I just felt the need to point out that anyone "burned" by this deal on the retail side was doing so with visions of a quick profit dancing in their heads.



Your point is well taken and the financially-wounded Vonage customers who invested in the IPO do not deserve immediate sympathy. However you must agree that Vonage advertised their IPO as kind of a beneficence to their supposedly valued customers when in reality, they most likely aimed to take advantage of their powerful brand name to lure their ignorant victims into a fiscally unwise move. Reversing their increasing churn rate trend was Vonage's goal, not showering quick riches on its upper middle class customers. Vonage figured that they would ride their customers to a higher level, but failed to consider the opposite effect...now they must!

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