May 4, 2006

Verizon Cuts VOIP Prices, Nixes Discounts

Verizon Communications has eliminated a discount on Internet phone services it once offered to its broadband customers.

The discount’s end and price cuts announced May 3 suggest Verizon is trying to jump-start interest in the feature and starting to market it more aggressively, said Lynda Starr, a senior analyst at Frost & Sullivan.

At Verizon, unlimited calls to anywhere in North America and U.S. territories now costs $25 a month, regardless of whether you get broadband from Verizon.

Since its debut in July 2004, Verizon VoiceWing customers always received a $5 a month discount if they also got broadband from Verizon.

Verizon lowered the overall price of the service as well. It used to cost $30 for broadband customers, and $35 for non-broadband customers.

Since its introduction, Verizon’s VoiceWing has accrued 27,000 customers, or about 5 percent of the U.S. residential market, Starr said.

Ben Charny

http://www.eweek.com/article2/0,1759,1957275,00.asp?kc=EWRSS04069TX1K0000701


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