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8x8 Lowers Videophone Pricing

4/14/2005 10:48:00 AM Eastern

Santa Clara, Calif. — VoIP provider 8x8 announced today that it is lowering the cost of its Packet8 videophone and related service in an effort to spur greater adoption of its IP video service.

The videophone will be reduced from $250 to $99, and the video calling service drops from $29.95 to $19.95 per month. The hardware price reduction is effective only for videophones purchased directly from 8x8’s Web-site for a limited time while supplies last. The service plan reduction is good for all new and existing Packet8 subscribers, regardless of where they purchased the service.

8x8 is currently selling its videophone package online with a two-year service agreement that includes unlimited voice and video calls worldwide to other Packet8 owners and unlimited local and long distance voice-only calls in the United States or Canada.

New subscribers are charged an initial $29.95 activation fee and applicable taxes. The company is also adding a $1.50 monthly “regulatory recovery fee” to both voice-only and video calling plans.

"We believe that by dramatically lowering the cost of entry, we will diminish the hurdle facing consumers who have shown strong interest in purchasing our broadband videophone but are precluded from doing so because of the price," said Bryan Martin, CEO, 8x8.