"SMS" <scharf.steven@geemail.com> wrote in message
news:45b54732$0$68952$742ec2ed@news.sonic.net...
> 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.

What is so bad with $25.00/month? Vonage's customers leave, according to
industry reports, because they are unhappy with the call quality, not
because of price.

Does Cingular price their wireless service to be competitive?