jeremy wrote:
>> Todd Allcock wrote:
>>
>>> Agreed. Vonage got in the game early, and seems to think their
>>> continuous advertising will convince people it's a good deal. Again,
>>> it's their reliance on ignorance- people think $25 is a good deal vs.
>>> their landline provider, and it probably is, but competing VoIPs- even
>>> the mainstream ones like Sunrocket, offer better rates.
>
> The fact remains that Vonage is operating in the red, so it would be
> difficult for them to justify a rate reduction.

That's not the way pricing works. You set your prices to be competitive,
it doesn't matter whether you're in the black or the red. You can't
raise prices to raise revenue, as you'll lose customers. Sometimes
lowering prices increases revenue as volume goes up.