VOIP provider Vonage has begun selling its product through RadioShack's 4000+ retail locations. Often times you will see companies trying to stuff retail channels with products that are not ready for the mainstream. For example Segway launched their much hyped Human Transporter through Amazon. This was an interesting decision considering how many people do you think would buy a $5,000 product whose value proposition was unclear to the masses?
Vonage's move into broader distribution channels is a smart strategic decision. Broadband penetration is on the rise across the country and cable/DSL companies are ramping up to sell VOIP services to consumers directly. This would in effect shut out players like Vonage before they can get going, much in the same way TiVo faces the potential of being shut out by Cable & Satellite companies offering generic DVR capabilities.
While TiVo has tried to sell it's product as a lifestyle product, Vonage has sold its product based on price. This is an important distinction because it provides TiVo the opportunity to move up market by adding capabilities and features, while Vonage could be stuck in a price war soon. Vonage's best bet could be to get broad distribution (think Wal-mart, Best Buy, RadioShack) to push adoption before the companies controlling the broadband connection into the house get into the business.
