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AOL Canada to Drop Prices
by
Mark Evans
on Wed 20 Apr 2005 04:43 PM EDT | Permanent Link
Looks like AOL Canada has decided if you can't beat 'em, join 'em amid expectations it will lower prices of its TotalTalk VOIP plans this week. AOL is currently selling VOIP two packages: $44.95 a month for plenty of features and 1,000 minutes of LD in North America, and $34.95 for 60 minutes of LD. This compares with Primus, which offers unlimited North American LD for $29.95; Vonage Canada, which sells its unlimited North American LD plan for $39.95 and 500-minute LD plan for $34.95; and BabyTel, which unveiled an unlimited North American LD plan for $30 earlier this week.
As much as service providers would love to sell VOIP on features, price still rules the day. At VON Canada, you could feel the growing sense of frustration among executives struggling to build new businesses while the economics continue to crumble. Maybe this is a battle of the fittest. When the dust clears, the survivors may be able to raise prices. But there is also a risk consumers will equate VOIP to cheap, and resist attempt to price it otherwise.
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