Vonage: One More Market Problem

This column was originally published on RealMoney on May 24 at 10:17 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.

Vonage(VG Quote) is the problem of this market writ large. Here is a company that is in the single-most competitive space in the world, delivering phone service to a home. This is a company that, arguably, loses money on every single customer.

This is a company that got off the ground because Comcast(CMSCA Quote) dragged its butt in offering VOIP. Now Comcast has gotten aggressive and you have a vicious competitor.

Not to mention that the only thing that kept eBay(EBAY Quote) from becoming your phone company via Skype was that it charged for calls outside its system. Now that barrier's gone. ...