Friday, May 05, 2006

Verizon's VoIP Offensive

Olga Kharif writes on Businessweek Online:

Take cover, Vonage.

Just weeks before the Internet-calling pioneer plans an initial share sale, rivals are planning their competitive attack. Verizon Communications on May 3 said it would slice the price of its Web-calling plan by $10, to $24.95, below the price of Vonage's comparable package.

Not only is Verizon cutting the price of its VoiceWing service to pennies less than Vonage's most popular unlimited calling plan for consumers, it's also offering free activation. That costs $29.99 at Vonage. What's more, Verizon's price change will automatically apply to current customers.

More here.

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