AT&T and Vonage do battle
Print storyVoIP price war
Posted in Data Networking, 4th October 2004 10:09 GMT
Free whitepaper – Virtualization: optimized power and cooling to maximize benefits
Voice over IP calls are getting cheaper - Vonage and AT&T both announced lower monthly charges late last week.
AT&T said it would reduce its monthly charge by five dollars to $30 a month for unlimited local and long distance calls in Canada and the US. In response competitor Vonage announced it would also knock five dollars off its monthly charge. Its package for unlimited calls falls to $25 a month. The firm is also simplifying its other call packages.
The news is the first sign of a price war in the market for broadband phone services.
VoIP services use internet protocols to route calls and so should be able to provide services for far less than a traditional telco using its own network. A spokesman for Vonage said prices could continue to fall as the firm takes advantage of benefits of scale.
Vonage claims 200,000 customers out of a total residential market of 1m subscribers. ®
Related stories
Feds invite comment on VoIP wiretaps
Skype launches Pocket PC software
Say goodbye, then hello to AT&T phones
BT shaves a quid off VoIP service
Free whitepaper – Management strategy for network-critical physical infrastructure
Modular Services - Can Dell Deliver?
The future of SaaS and IT infrastructure management
Should your email live in the cloud: a comparative cost analysis
Hosted security IT manager's guide
Jump start your Application Security initiatives
Micron move heralds Intel 320GB SSD
Steve Jobs finds part-time work
Seagate shines under Luczo's law
HP whips out blades for future