WSJ.com - A Price War Hits Internet Calling "Fierce price competition is hitting the fast-growing Internet phone-calling business.
Consumers are used to prices of many new technologies eventually falling. But with Internet phone calls, the industry has begun to lower its rates at a remarkably early stage, reflecting the low cost of providing the service and the cutthroat nature of the phone business.
AT&T Corp. recently extended an introductory offer of $19.95 a month for its CallVantage service, which offers unlimited local and long-distance calling, through the end of September. Earlier, Vonage Holdings Corp., the pioneer in Internet calling, shaved $5 off the price of its primary service, which is now $29.99 a month."