Vonage’s decision to settle with Sprint was probably one of the most foolish decisions it has made up till now. Vonage existed as a thorn in the eye of the big telecom companies because it offered consumers actual value at reasonable prices. You can actually get service for 30 dollars or so that would cost you sixty dollars with the big companies. Naturally Vonage had to die and the instrument of destruction was patent blackmail.
Verizon was the first to leap into the fray since its business, its monopoly on domestic calling, was the worst hit by Vonage’s low prices popular with urban customers who have traditionally never had a choice. Then Sprint saw a target of opportunity to cash in some worthless patents by grabbing a piece of the pie, and in settling with the Sprint hyena, Vonage only attracted more patent scavengers looking to mine their patents for gold. Which is why AT&T has now sued Vonage over its own patents. And of course since all the big telecom companies have tons of useless broadly written patents that can apply to just about anything, it’s safe to say the lawsuits won’t end until they can carve up Vonage, sell off the pieces and raise their own rates yet again.
When you pay danegeld, you never get rid of the dane.