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July 30, 2004

Roll up, roll up! Get it while it lasts!

According to El Reg shaves a quid off VoIP service, BT is already cutting the price of its VoIP plans:

BT's Broadband Voice product - which was launched in December - lets phone users make calls using a touch-tone telephone. [...] Now, though, BT has shaved a quid off the cost of its "Evening and Weekend Plan", which has been reduced from £6.50 to £5.50. Its "Anytime Plan" has also been reduced from £14.00 to £13.00 for all BT Broadband customers.

So, only another 13 price drops to go...

[Cultural lesson for all non-UK readers: a "quid" is slang for one pound sterling.]

VoIP plans have been in freefall in the US too (my Vonage bill has dropped over 60% since I started out.)

Marginal cost of VoIP call: zero. Barriers to entry: none. Market price: zero. VoIP telephony market: doesn't exist, except as an arbitrage of the dying PSTN.

Posted by Martin Geddes at 10:45 PM
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