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magicJack VoIP phone service may win the cost battle in the war of residential Internet phone service providers Vonage vs. magicJack, but it comes up short in other departments. While magicJack offers a competitive range of basic telephony features, Vonage includes even more advanced call control features in all of its monthly calling plans.
Internet phone service provider Vonage is the latest among a slew of leading Net telephony companies to cut prices in a battle for customers. Vonage, which is among the largest and most recognized providers of a technology known as voice over Internet Protocol (VoIP), on Monday slashed the price of monthly unlimited North American dialing from $35 to $30. The carrier's new monthly price puts its subscription rate on par with what's become the industry standard cost for Net phone call plans, made cheaper because they use the unregulated Net rather than the phone companies' highly regulated and taxed networks. Vonage's price cuts are likely to force smaller players into further dropping prices on calls to differentiate themselves. But Holder said Vonage won't likely change prices again, until it has the 450,000 subscribers it expects to reach sometime in the fall of 2005.
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