Financial Times FT.com

New strategy helps Vonage halve losses

By Paul Taylor in New York

Published: August 9 2007 18:26 | Last updated: August 9 2007 18:26

Vonage Holdings, the leading independent VoIP (Voice over Internet protocol) service provider reported a reduced quarterly loss on Thursday after cutting back on advertising designed to attract new subscribers.

The New Jersey-based company, which has also seen customer churn rates climb after the courts ruled in March it had violated patents held by Verizon Communications, has now deployed "workaround” technology that replaces two of the patents in dispute, and has finished developing the third.

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