I do not want to comment much about the credit crunch except as it influences technology. I wanted to bring a warning to people who use Vonage about something from my personal experience with VoIP. SunRocket went out of business suddenly and without warning leaving me and thosands of other people without service including 911. They managed to keep some people’s lines going from what I understand, but mine was immediately cut off. Vonage’s most recent 10Q talks about their debt and gives some warnings. If you have Vonage I encourage you to take a look at their investor relations pages and read this information for yourself. I’m not suggesting that they won’t secure the financing that they need to stay in business, I’m just giving a warning that you may want to do some research now on what you would do should your phone suddenly stop working. It was a mad rush to other VoIP providers when that happened, and I was already testing Packet 8 on the 30 day free trial, so I had it relatively easy.
Just at a minimum make sure you have a cell phone handy – even one without a service plan will work fine for 911 calls and won’t cost you a penny except to keep it charged.
On the same subject, you may want to look at other publicly traded companies that you do business with to see what their financials look like. I’m not suggesting you break off with Vonage or anyone else, because that will only increase the problem, just that you make the most of the resources that you have and make smart buying decisions. It is my opinion that this thing will blow over more quickly than most people expect, but more companies will go under before it is over.
UPDATE: Vonage having trouble selling its debt.
UPDATE (10/20/2008): The criticality of the deal is over, Vonage refinanced its debt, but the terms are not great.
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