WSJ.com - Rivals AT&T and Vonage Slash Price of Internet-Phone Service "AT&T Corp. cut the price of its Internet phone service by $5 a month yesterday, only to see rival Vonage Holdings Corp. slash its prices to stay $5 below AT&T's latest offer.
AT&T has stepped up the marketing of its CallVantage service in the past two months, including a slew of ads show during the Olympic Games in Athens. Yesterday, AT&T cut the price of its unlimited calling plan by $5 to $29.99.
Vonage, an upstart Internet-phone company with more than 275,000 subscribers, responded by cutting the price for its unlimited calling plan from $29.99 to $24.99. "We were going to announce this on Oct. 1," said Vonage Chairman and CEO Jeffrey Citron. "Coincidentally AT&T made their announcement today so we accelerated ours." AT&T hasn't said how many Internet-phone customers it has."
I love competition... Vonage is working very well for me these days, incidentally.