ZDNet has details on the $600 million Vonage IPO -- the surest sign yet that the area of voice-over-Internet communication is hot. Make that sizzling hot, considering that Google is jumping into the market. The Edison, NJ-based company did not provide any juicy details on the offering, but that hasn't kept bloggers from speculating about the ramifications the deal. Suffice it to say that the company has already raised $400 million in VC funding and now provides close to 800,000 U.S. households with Internet-based phone connections. With another $600 million, the company will be able to blanket the airwaves with its "People Do Stupid Things" commercials.

Over at Gigaom, Om Malik has assembled blogosphere reaction to the deal, with Mark Evans noting that the company probably made a "strategic mistake" by waiting too long to do the IPO, while TechDirt questions why the company needs to raise so much capital. Om Malik also weighs in:

"I find the timing of this news pretty interesting! There is clearly lots of competition, including cable companies which are just cranking their sales machine and pushing VoIP like crazy. Skype, Yahoo, Microsoft and Google’s Voice-over-IM offerings are going to put some if not a lot of deflationary pressure on the prices. Price pressure is going to be rampant. Good time, to re-read my Telecom Death Spiral essay. And that’s not even taking into account some of the problems incumbents can create for all indy-VoIP people (without risking the ire of FCC, of course!)"