Price wars in the Net phone biz

by John Borland

AT&T said today it is cutting its monthly charge for unlimited Net-based phone service to $29.99, from $34.99. Vonage promptly followed suit, cutting its fee to $24.99.

Net calling is a high priority for AT&T, and the company has said it's willing to stick it out for the long run. It has a network that allows it to have reasonably low costs. Looks like it's trying to squeeze rivals out of business by driving margins so far down that the profit is gone.

Topics:: Broadband

Tags:: Politics,; Government,; Business broadband,; Personal broadband

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