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AOL launches VoIP

No price war just yet

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AOL has made its much anticipated jump into the internet telephony business, unveiling a number of calling plans designed both to keep existing subscribers and win new business in the US.

Existing subscribers get the option of unlimited local calls for $18.99 (with an introductory offer of $13.99 for the first three months); unlimited local and long distance for $29.99 a month ($24.99 for the first three months); or a global plan with cheap international calling for $34.99 a month.

New subscribers to AOL Broadband can sign up to the second option for $39.99 a month, after six months discounted at $29.99 a month.

By contrast, the leader Vonage charges $24.99 per month for its "Premium Unlimited" plan covering calls anywhere in the US and Canada, with an entry-level 500 minute bundle available for $14.99 per month. Verizon yesterday cut the tariffs for its VoiceWing VoIP service to $29.95 for unlimited local and long distance, and added an entry-level 500 minute bundle at $19.95 per month. Skype is free between computers running Skype's client software, but significantly undercuts its rivals for calls terminating at a POTS phone.

So AOL has decided, at least for now, not to get into a price war with Vonage, Verizon and AT&T.

AOL's service rolls out in 40 cities. AOL launched a Canadian service, initially only limited to the Ontario province, called TotalTalk in December.®

Related stories

US to embrace VoIP
FCC strikes against VoIP blocking
Skype offers texts
VoIP carriers launch international peering network
Spam gets vocal with VoIP
FCC investigates VoIP squashers
VoIP security group goes on the defensive
Vonage offers VoIP mobile phone

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