Monday, May 17, 2004

How cheap can it get?

Already it is significantly cheaper to use VoIP providers like Vonage for your telephony needs, but now there is a price war between the low cost providers! According to this NetworkingPipeline story, Vonage Cuts Prices for Internet Calling

The company insisted it was not launching a price war in a market that is just starting, saying that the price cut reflected its decreasing costs in doing business.

Right. And as the article goes on to point out, AT&T announced their CallVantage plan just 6 weeks ago with an introductory price of $19.99 a month for the first six months. I am guessing that would have slowed Vonage's customer acquisition rate.

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