Verizon announced that it lowed the cost of its VoiceWing service from $34.95 to $24.95 per month if taken with Verizon broadband. That is way cheaper than Vonage's comparable, $24.99 plan. But unlike Vonage VoiceWing the activation will is free.

AOL said it would launch AIM Phoneline, a free service that will let AOL IM users receive incoming calls from any phone. The service will also come in an AIM Phoneline Unlimited version which will let users call any number in the U.S. as well as in 30 countries for a flat monthly fee of $14.95.

Verizon squeezing Vonage from 'above'- as a deep-pocketed provider with enough resources to drive down the pricing game and recruit the type of VoIP customers Vonage needs to cover its massive marketing expenses as well as the confidence level of investors once the their stock goes public.

And AOL is squeezing Vonage from below. Let's see, $14.95 for 30 countries and the U.S., vs. $24.99 for North America and a handful of European destinations? And instant messaging on top of it all?

Truely Vonage has a tuff competetion here.


Source: Znet


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