The bad news for Vonage just keeps on rolling in. The face of VoIP providers everywhere has reportedly coughed up $80M to make Verizon leave them alone. That's almost a third of their cash on hand, not a pretty picture for a company with high churn rates due to some lacking customer service.
It's only downhill from there. According to a security firm, Vonage could be wide open to line hijacking. Among the key elements cited is a lack of encryption used between their telephone adapter hardware and their VoIP gateways. Combined with weak authentication, it could take as little as a phone number and a name to make Bob Jones of Virgina have his calls ring in Moscow with little indication that anything is wrong.
I've been using Vonage for over three years myself and I can attest to their kind of crappy service. It took me over 4 months to get a simple e-mail problem fixed and about 2 months to get them to swap my primary and secondary numbers (after which they forgot to activate my voice mail box). Despite that, I've been pleased with the service. I am, however, worried that I'll wake up one morning and find I no longer have a dial tone.