Reader Question: Is Vonage Going Out Of Business?

Posted by Erik on November 4th, 2008

Q: I have heard that Vonage might go out of business because they have a big debt coming due and they are being sued for patent violations. Is this true?

A: No! Vonage is not going out of business or going bankrupt. As we've all learned in the recent financial crisis, with companies worth tens of billions of dollars one day and nothing the next, we should never say never, but Vonage is probably the most stable VoIP company out there. Yesterday, Vonage completed a refinancing of their debt that was due in December, ensuring their financially stability for several years to come. And over the course of the last year, Vonage has settled all outstanding patent litigation against it.

So while some small, private companies like SunRocket have gone out of business and huge phone companies like AT&T have exited the VoIP market, you can be certain Vonage is going to be around. To learn more about Vonage phone service, read our Vonage review.