Vonage plagued by service problems

As Vonage moves closer to its planned $494 million IPO, it's encountering more bad press. It has come to light that Vonage's VoIP service is plagued with service problems as message boards and consumer forums continue to fill with complaints about poor sound quality and dropped calls. Remember last week folks were irritated by the company's move to spam its own customers to urge them to buy in to the IPO. "Our growth has caused some unforeseen customer service issues which we are working hard to fix," said Vonage spokeswoman Brooke Schulz. Meanwhile, the prospects for a successful IPO just don't look that great. Profitability looks like it's a long way off. It doesn't help that Skype recently introduced SkypeOut calls that allow users to make VoIP calls from their computers to any land-line number for free for a short time.

To read more about Vonage's service problems:
- take a look at this article from The Wall Street Journal (sub. req.)