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Vonage Cuts Price Of VoIP Retail Kit

Edison, N.J. — Broadband VoIP provider Vonage announced today that it has cut the suggested retail price of its VoIP self-installation kit by $10, bringing it to $79.99.

Customers who purchase the Vonage self-install kit and phone service at retail will also receive a $50 mail-in-rebate, making the total price only $29.99. Vonage kits, which package a Motorola Multi Terminal Adapter, Ethernet cable and power converter, are currently sold at Best Buy, Circuit City, RadioShack and Fry’s.

The price-cut for the self-installation kit follows a reduction in Vonage’s unlimited North American calling plan from $34.99 to $29.99.

The cuts from the VoIP start-up come amid the rapid increase in VoIP service competition from big-name telecom and cable companies. AT&T has begun an aggressive roll out its CallVantage VoIP service, aiming to reach 100 markets by the end of the year. Cable MSO Comcast recently announced that it will begin offering VoIP telephony to the markets it serves on a large scale basis by 2006.

According to a recent report from the research firm Juniper Research, VoIP telephony will contribute $32 billion, or 12 percent, of total global telephony revenue by 2009.