The Vonage & VoIP Inc. deal mess

Updated: Yesterday, I wrote about the Vonage-VoIP Inc., deal that seemed to be perfect for Vonage to get out from under Verizon’s thumb of death. A few publications and some Wall Street firms had pointed out that VoIP Inc., had some patents and cited a 8-K filing. Instead of checking the facts, I went along with what others were saying.

Unfortunately, that doesn’t seem to be the case. A few vigilant readers wrote in and prompted us to further investigate the claims in the previous Vonage-VoIP Inc. report. A Vonage spokeswoman in an email said:

The VoIP Inc. 8-K filing has caused much confusion in the marketplace. Vonage’s deal with the company is a termination deal, and is completely unrelated to the development of workarounds. Basically, VoIP Inc. is no different from any of the carrier partners Vonage utilizes to get inbound calls from the PSTN to customers, or vice versa, IP calls to the PSTN. Again, this deal is completely unrelated to the pending litigation between Vonage and Verizon.

So for this less-than-mediocre reporting, I would like to offer my apologies to the readers and hopefully learn from this episode.