by Mike Masnick

How Low Can VoIP Go?

from the cheap-cheap-cheap... dept

Things are certainly staying busy in the VoIP world, from new entrants to new regulations to incumbents scrambling to protect dying cash cows. However, one thing that has stayed the same is that the price for VoIP service has been consistently dropping lower and lower. Earlier this month, we pointed to the launch of SunRocket, a me too VoIP player who didn't seem to offer anything different other than a promise that the price they offered was the price you'd see on your bill (no extra fees and taxes and stuff). Apparently that marketing hook wasn't catching on, so their latest strategy is to play a little VoIP limbo. They've dropped their prices even further than anyone else (for at least a day until the other cheapo providers follow suit). With over 400 VoIP providers on the market these days (400!), you get the feeling that a lot of these companies are going to lose an awful lot of money before the market settles down. In this case, it looks like SunRocket is probably just trying to drive others out of the market. They're willing to take a loss for a while, in the hopes that others will bail out and they'll be one of the few brand names left standing. It's not likely to be a fun ride.

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