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Big Telecom News day: Verizon sues Vonage?

Verizon sued Vonage claiming the VOIP provider infringed Verizon patents…. and, Nokia and Siemens come together.

What a news day.

  1. 1. Verizon sues Vonage to 'vigorously protect their rights.' Give me a break. Big telco sues upstart to stifle innovation, should really be the headline. This proves the whole issue around net neutrality. It's about extracting $ from every single endpoint of the network and every single server in-between. Phone companies that deliver lots of services above and beyond the packet service of DSL, are organizational anomalies in that vertically integration is the path of the dodo bird. Technologies market (Computers) and automobile market evolution have consistently shown that vertical integration leads to weakness from attack by specialists in one particular layer of value who can do it cheaper/better than the vertical behemoth. Note IBM and Apple versus Microsoft and Intel. Phone companies should stick to what they do best – manage billions of miles of copper and glass. Give it up Verizon!
  2. Nokia and Siemens. Naturally. This is only the telecom equipment units. Siemens Enterprise is left alone for another transaction soon. So who will pick up Nortel? Motorola? Maybe, Ericsson?