Vonage: Oops! The FTC Is Still On Our Tail

Last week, Vonage announced that the FTC had ended a year-long investigation into whether the company complied with federal emergency 911 regulations. Apparently, the company spoke too soon, because it just announced that the investigation is still ongoing. The issue is a thorny one. The FTC requires that voice providers, including VoIP ones, provide emergency services and connect people to a dispatcher when they dial 911. The dispatcher also is supposed to get the caller's location and phone number.

The FTC began the investigation in January, 2005. Given how slowly the wheels of the federal government grind, it's still going on.

The FTC is not only investigating the company for its 911 services, for also for its telemarketing practices.

The merits of the investigation aside, this is one more example of apparent Vonage incompetence. Its IPO was a disaster, not only because the stock tanked as soon as it went public, but because it was handled so poorly that the company is being riddled with suits.

The publicity from the IPO was bad enough. Now it can't even figure out whether an investigation has ended against it?This is just one more reason I'd stay away from the Vonage IPO. I can't say that the company is in particularly good management hands at the moment.