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Technology Stocks : Covad Communications - COVD
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From: rrufff5/19/2006 7:09:05 AM
   of 10485
 
In response to an article in the WSJ blasting Vonage, this is a great email from a poster on the Yahoo group.

From: "dmh748" <dmh748@...>
Date: Thu May 18, 2006 9:30 am
Subject: Re: Vonage Faces User Complaints As IPO Looms dmh748
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Just for the heck of it I sent the following email to the authors of
the WSJ article:

---------------

Hello Shawn & Li,
Thanks very much for the informative article regarding the Vonage
service quality issues.

Just one thing: I hope that your readers don't get a bad impression
about VoIP in general.

In the case of Vonage, a call travels over the open internet and is
therefore subject to slowdowns, disruptions, and traffic jams at any
number of routers along the way. As long as Vonage doesn't own or
control the routers there is nothing they can do to improve the
service quality.

But other VoIP services (e.g. Comcast) confine the data packets to a
private network and thus don't suffer this problem.

Even better yet, the Earthlink / Covad Line Powered Voice service
not only has all VoIP traffic running on a private network but also
works indefinitely during a power outage.

One thing that Vonage could be doing is to start selling its VoIP
together with something like Covad's "Voice Optimized Access" DSL,
which separates voice and data traffic right at the source and keeps
the voice traffic off the open internet.

ATT is probably getting close to doing so with their CallVantage
service, since ATT also offers a DSL service (provided by Covad)
which could be sold together as a bundle.

Thanks, dmh748

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