VOIP Price Watch

AT&T Callvantage dropped their price today by $5 (to 30) which was quickly countered by Vonage bringing their price to $25/mo. This is an unlimited local and LD package with enhanced features – a great deal at either price.

Vonage has too be pissed though… They are the small guy here and it’s clear the deep pockets at AT&T could push them down until they no longer make any money on current customers…assuming of course this has been profitable to begin with. As the review goes on for the marketing of their business, we may learn a bit more about their current customer acquisition costs, which I figure are higher than desired given the (perceived) wasted reach they run to try and keep pace ATT. To me that’s a losing battle and they should instead focus on reaching the right kinds of people with the right less techie message. AT&T is doing a great job educating people through mass media and now Verizon Voicewing is getting in the game as well. Vonage needs to be smarter.

Om covers this bit as does Andy and thevoipweblog. By all counts this hurts. The SIPphone lawsuit against their current in-store marketing can’t feel too good either. Michael Disruption Robertson stirring it up again…

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