Comcast and Vonage Compared

A few weeks back Ike Elliott wrote about the differences in growth and momentum between Comcast and Vonage.

Here's my take:

1) Vonage churn is one, if not the highest in the telco industry. A lot of involuntary churn isn't even factored in. That's the folks who don't pay their bill and get cut off.

2) Comcast lacks a four-play play that matters. Their offer for mobile is a Sprint solution rewrapped, with the big difference being the bill now comes from the same source. Call that Mobile 1.5 that comes from a Voice 1.5 operator. Customers of Comcast would be better to have two bills, and go with the T-Mobile solution that's being trailed in Seattle and Dallas (see post below) and the HotSpot @ Home solution.

3) Ike didn't compare Comcast to a worthy peer. Cablevision, a company I think is about the best operating MSO in the USA, with a clear handle on market wants and needs. If I could live somewhere other than SoCal I'd want to be in either a Verizon vs. Cablevision Market. That's where the action is. The only other markets that are moving are where Fiber is native to the house and office environment.

4) For Vonage to evolve, they need a "Hail Mary" play. That means maybe XOM from Sprint as a suitor, but more than likely someone else with a services roll up mentality will see some value in what they have. With so many ex-Vonage types now looking for other gigs or engaged in new startup ideas, the reality of the situation is Vonage is acting more and more like an old tired horse that needs to be put out to pasture. It's stud farm days, with the departures, are long since over.

Pal Jim Courtney also has a relevant post about Comcast worth reading.