Internet lowers phone charges

Posted on July 4, 2006  /  1 Comments

Internet Calling Pressures Bells to Lower Rates – New York Times

“The Bells still control the bulk of the country’s 180 million landlines and are far from giving up on what has been a giant cash cow. When pushed, they are even offering their own Internet-based calling, but these services are rarely advertised. It is cheaper to cut prices to keep customers, they figure, than to try to win back customers later from a rival.

During the first quarter of this year, the number of traditional telephone lines dropped by 150,000 a week, according to TeleGeography. At the same time, the number of subscribers to Internet telephone services has increased by 100,000 a week.

AT&T, among others, says the drop in lines is not as painful for the Bells as it looks. Many customers cancel phone lines they used for dial-up Internet service, but then sign up for broadband services provided by their phone company. Other customers eliminate a phone line but buy a cellphone plan from Cingular, which AT&T owns with BellSouth.”

1 Comment

  1. I guess this is in America. In Sri Lanka we still have regulated market in the telecommunication (what happened to free economy?) and VOIP is still illegal for general public in Sri Lanka.