Stop the (pricing) Insanity!
April 7th, 2005 Posted in Main Page
Clearly, the message that the real power of VOIP is compelling features rather than low prices is not resonating with service providers. As Om Malik pointed out, Verizon has launched a $19.95 package that provides 500 minutes of local and domestic LD calling. It will only be a matter of time before Vonage and CallVantage counter with their own price discounts. At some point, these guys are going to wake up and “gee, how come there is no money in this low-margin business?”. If they were just a little smarter and less concerned about market share, Verizon et al would realize you can probably charge a premium price for service with compelling features. It seems crazy to offer a better product but charge less for it.
