VoIP Price War Declared
gardel writes "Voxilla reports that a VoIP price war was declared today. An announcement that AT&T would drop its prices for its CallVantage Service from $34.99 to $29.99 per month was followed quickly by an announcement that Vonage would drop the price on its unlimited calling plan to $25 a month from the previous $29.99.
Analysts say the price cuts show the VoIP market is not only competitive, but it's serious."
Has anyone used Voxilla or AT&T's VoIP services?
Any reason why someone would pay want to pay more for AT&T?
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Even social democrats like myself can appreciate good free-market competition like this.
If only all markets worked this way, I might be a Libertarian. . .
The problem I have with my phone service is that the fixed per-month charge is about 5x what I pay for the actual calls I make.
I'd much rather have more expensive calls, and a lower per-month fee. I have no trouble with paying 5 cents a minute to make a call; it's paying $25+ a month for no calls that pisses me off.
GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
I'm not sure i'm the majority, but I'm really only going to care when they're making these services available in a handset that works not just inside my home, but outside in the rest of the world too. Fancy home calling services are nice and all, but I'm frankly not there that often, I need these fancy services (and higher calling quality) on the phone that sits on my hip all day wherever I go.
$25/mo? Lets see Walmart offer VoIP.. I'm sure they could make it go lower.. then we'd really see the masses come... Heck, why not have Walmart take over the world? They might be able to lower the price of earth.
Never see a price war with broadband.. esp. recently. Is it because of the monopolies had by Time Warner and other giants? Last sign of competition i've personally seen was TWC increasing from 2mpbs to 3 one year ago.
How is the quality of the VOIP services? Are there delays? Dropouts? Access to local 911? What happens when the power goes out in my house?
Strange women lying in ponds distributing swords is no basis for a system of government.
Personally, I'm against all this competition.
What is clearly needed here is for the government to step in and start dividing up different areas of the country and assigning monopolies to the various telecom companies. I think we can all attest to the wonderful customer service and prices that a government sanctioned localized monopoly provides.
Even transferring my phone number was painless. I just faxed them a phone bill and they took care of the rest.
I was a little concerned with "voice lag", where you get that delay effect, but so far it's been unnoticeable. (but I also have a four megabit cable modem).
In short, Vonage has rocked so far. I had my doubts about VoIP, but no doubts any longer.
Sometimes it's best to just let stupid people be stupid.
I realize Americans have the all-you-can-eat mentality more so than the rest of the world, but is an unlimited domestic long-distance plan really the only way they can compete? I don't make enough long distance calls to justify that much for land-line voice service, and I have broadband. I suppose it's cheaper than a POTS line plus unlimited long distance, but of the people with broadband, I don't see a huge market to compete within. Please enlighen me if this is really a fast-growing market segment, because I just don't see it.
I have considered vonage, because of the low international rates, but I don't want to dedicate a certain portion of my bandwidth for my telephone service. My upstream is hosed enough as it is, let alone dedicating part of it to phone use.
I would love to see a drop in prices for my cable modem service however. Since i got a cable modem 4 years ago, my bill has gone up 5 bucks. Meanwhile, new subscribers get their first 6 months at 29.95. After that, if they call to cancel, they are given another 6 months at 29.95 (I know this for fact, my dad called to cancel his account, and they offered him this deal).
Meanwhile, a 4+ year subscriber like myself calls, and says they are thinking of switching to Earthlink from Roadrunner, since it is 3 bucks cheaper a month, and they give 6 months at 29.95, they do nothing to try and keep me as a customer.
Of course they don't tell you that it is essentially the same service, since Earthlink goes through the Time Warner lines. So techinically they are not losing the customer. Which begs the question, how can Earthlink charge less per month?
On top of which, Comcast and Time Warner are working on a coop bid for the remains of adelphia, which will only damage competition even further in the cable industry. *sigh*
sorry for the mostly off topic rant, but it bugs me to see services like this that can slash prices left and right in the name of competition, and the cable companies are still firm in their prices.
I have a plan with vonage that was 25 bucks when the premium plan was 35. The premium plan fell from 35 to 30 to now 25, but my plan has stayed at the same level at 25 bucks. It is an unlimited local plus 500 national minutes free. The remaining option is a basic 500 minutes, which was at 15, and still is at 15.
:(
For some reason, Vonage doesn't want to cut the price on the basic and intermediate plans
S
I just got Vonage.com about 2 months ago for their $15/month plan (500 minutes plus $0.039 for overage minutes). I really like the service. I had a very small issue with installation and the tech support was very helpful. Pretty much no brainer to get running with my wireless router and cable modem. The sound quality is IMHO better than any traditional landline I have had. I would recommended them to anyone.
Great ideas often receive violent opposition from mediocre minds. - Albert Einstein
for the first 6 months, $34.99 thereafter. Thanks slashdot submitter for that fully objective and accurate portrayal of pricing.
AccountKiller
I'm basically happy with my Vonage service. Only a few minor complaints:
If Skype had a service that gives me a phone number and lets me receive calls I might switch to that. I also think that Skype has better sound quality, in my experience.
know what's funny? maybe 5 years ago I used Dialpad.com... VoIP, 'cept through your soundcard... and you could call actual phone numbers. (this was in the day before free long distance was a staple in the cell phone community).
The funny part?
It was free.
Sony ha
I have had absolutely no problems for the last two months. I get an amazing price - $19.99 for unlimited US, Western Europe & Canada, and the first three months absolutely free.
I can't imagine not having the convenience of VOIP. The online bonuses - email voicemail, detailed billing, etc are good too. Ob. referral - contact my id for a ref bonus:)
The rates to the rest of the world are good too
I don't see how charging $25 per month for "phone" service can be justified much longer. You are just sending and receiving data packets over your broadband connection, which is already paid for. If you consider a phone number is a lot like a IM ID name or a email address, what's the real difference between your phone ringing and getting a IM message window popping up? One costs you $25 per month and the other lets you talk for free. Why don't we just make things that look just like a phone, ring when you get a message, and emit a dial tone when you pick them up and let you dial a number instead of a IM ID or email address? Why pay $25 for this? People think it's a great deal but that's because they are comparing it to the old phone service which costs more and charges by the minute for long distance. Compare it to how you use Yahoo messenger for example and you wonder why pay anything at all for it?
When I signed up for Vonage, it cost me $40 a month which was a huge savings off the $60 a month I was paying for traditional service.
Now the price is going down to $25 a month? This is amazing. I was briefly considering building my own VoIP system, this news makes it not the worth the trouble to go out and buy the parts I would need.
Now I have time to focus on all the other projects I've been thinking about.
M
(Pre-rave disclaimer, I'm unafilliated with Vonage except as a customer.)
I set up Vonage for our company - we're running 4 lines over a 5Mbps DSL with only occasional stuttering problems.
But the real benefit comes from the fact that although we are a small company, we have offices in five countries in Europe which we speak to on a daily basis. So, we signed up with Vonage for five new lines each tied to a New York number, then when we received the adapters we turned them right around and shipped them to the outer offices. They plugged them in and bingo, all five offices are now accessible with a local call. Plus, that local call is free because all in-network calls with Vonage are free.
That plus the super-low international rates for our other business calls have saved us close to $1,000 a month, which for our sized company is huuuuuge.
Just a week ago I used three-way calling to set up a conference call between London, Prague, and New York and ended up paying 6 cents a minute total. Crazy.
Only downside has been number transfer - they haven't made any progress with cutting our lines over, so we're still having to pay Verizon 80 bucks a month for forwarding - but even there Vonage siad they'd credit our service for any time over 40 days.
I'm a fan so far. . .
The only acceptable defense of scientific results is to say that they were the product of the Scientific Method.
I've recently switched from Vonage to AT&T. The call quality on Vonage was not very good. There is often a nagging local echo and there were several times that I had to reboot the telephone adapter to get it to function. This was unacceptable. Everything about AT&T's service has been better so far: call quality, customer service (much lower hold times!), and more features (locate me!).
Also, AT&T's telephone adapter sits on the internet side of your home network - this allows the device to perform QoS functions by prioritizing the voice packets. Vonage's device sits behind your router and therefore can't do anything about a busy connection. There will inevitably be dropped calls if you use your internet connection heavily while on the phone.
Dave
VoicePulse has had prices that low for a while, and they allow you to setup your own VoIP reseller type service, VoicePulse Connect. It works great with Asterisk, which they push as a solution. Very geek friendly.
--
Josh
Everyone is missing the forest for the trees on this one. We already pay a fee to connect a device in our homes to a network around the world.
$25/month is $25/month too much for VoIP (when you already have a cable modem).
What is it that we want to pay for exactly? Is it that we want to rent the VoIP hardware phone? Are we insecure putting our voicemail on our PCs at home instead of a SAN at some over-hyped corp?
Stop, think, repost.
Also, you can use just about any adapter on the market with either VOIP provider, in either configuration (with a little work). I have the Vonage adapter on the router (with QoS) side of the network and have had no quality issues.
I've got Vonage, but since I'm on DSL, I'm paying for a phone number anyway, and with the amount of calls I make Skype is a much better deal.
Now if only I could get some hardware (like my vonage/cisco ATA) which would do Skype instead of vonage....
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I use onesuite.com and pay 2.5 cents a minute within the USA. I pay that same rate for calls to China.
That means that for your "competitive" $25 a month, I could make over 16 and a half hours of calls (to just about anywhere in the world... from any phone... at any time of day... on a regular, echo free phone line no less... and no I don't have to enter a bulky code every time I call... calls from my home automatically bypass the need for a code).
None of the options presented here are that cheap and convenient and until they can at least come close, I will stick with my onesuite.com (which I've used for 2 years now).
Vonage's hardware can sit in front or behind your router. It all has to do with how you configured it.
That being said, it's not 100% service. But it's a lot, a lot less frustrating than using a cellphone.
Small potatoes make the steak look bigger.
It could also be the lack of reliable e911 service. Or the fact that when the power or cable go out, you'd lose VOIP but not POTS.
It is amazing what you can accomplish if you do not care who gets the credit. -- Harry Truman
I use Packet 8 communications at $19.95 with no problem. Since it's cheaper than either Vonage or AT&T why was it not mentioned?
Overall, I'd give it a B+. I've probably saved $100 or so over the past couple of months, at the expense of a really bad headache. Still, if I ever go anywhere I like to know I can take my Vonage box with me and have my number be there.
Small potatoes make the steak look bigger.
Not true about the current vonage telephone adapters. I signed up about 6 months ago, and the motorola box that they sent can sit either in front of the router and perform QoS, or behind the router with no QoS.
I still haven't given up my POTS line, although I've reduced to the bare minimum service with no features. Problems with echo and occasional service disruptions made me hesitant to switch to VoIP exclusively.