Cablevision Cuts Rates Of International Calls, Days Of Voice Profits Numbered

from the cheaper-and-cheaper dept

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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Comments on “Cablevision Cuts Rates Of International Calls, Days Of Voice Profits Numbered”

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Anonymous Coward says:

Don’t get too giddy and worked up over VoIP. Everything that pulls people off PSTN and onto VoIP also adds to the darkside of VoIP; what it can’t and/or doesn’t do. In particular, comply with basic regulatory requirements imposed on the PSTN. VoIP now enjoys some exemptions that won’t last forever.

Google VoIP, E911, CALEA, taxes, quality oversight and see what you find.

And think twice about giving up your telco landline, there are some “oops, didn’t know that” downsides and getting the line back is, suprise, pricey.

JerseyRich says:

I got tired of getting “slammed” (having unauthorized charges put on) on my Verizon phone bill every two or three months so I cut the phone line and the DSL. I now have Vonage and Comcast Cable and couldn’t be happier.

My phone bill is $19.80 a month and I never get slammed!

Sure, with taxes it may go up to $30 a month, but it will be a while before that happens. The market will be more developed then and I can make another choice at that time.

Dave in NJ says:

Hmmm? I currently have unlimited local, regional and long distance via Verizon NJ for flat rate of $29.95 a month. No restrictions or limits, 24/7.

And one phone call can lock your account so no changes can be made without your verified permission. Don’t know why they didn’t explain that when the first slam occurred, unless it happened a long time ago.

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