The cost of a phone call continues to be in free fall. After Skype's announcement that they would offer free PC-to-phone calling in North America, Cablevision has slashed the rates of international calling to a fee of $19.95 for 500 minutes each month. Like the Skype move, it could be seen as another shot to disrupt the upcoming Vonage IPO, though they too have been cutting overseas rates. The timing of the move notwithstanding, it's obvious that more price cuts will be forthcoming, as consumers wise up to the idea that voice is just one class of data. Cablevision continues to demonstrate that they get the appeal of the triple play. While other broadband operators think of it as a way to raise prices and tack on charges, Cablevision realizes that the appeal to the consumer is in adding features and cutting prices. Eventually, the other operators will have to realize that this strategy actually works.
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