By now you know I hate to see VoIP providers compete on price. They should all be looking for ways to move up and not downmarket. Surveys have shown that very low-priced VoIP service is synonymous in user's minds with shoddy quality.
Does it make sense to be the lowest priced VoIP provider when low price is equated with low quality?
I don't think so.
On the other hand I do think that what Packet8 has done by going to an annual calling plan makes sense. My instincts tell me that even though customers are saving with this new 12 month - $199 plan, the high initial cost equates to a higher price which may not have any impact on Packet8 image or branding.
Whoops – eagle-eyed Bret Morrison sent me this message in response to this blog entry. He is right and I was originally planning on blogging this info as well. I guess this is what happens when you blog during your meetings. ;)
You forgot to mention that the consumer gets a $179 corded/cordless Uniden Whole House VoIP phone system with this $199 / year service.
That makes it an incredible deal.
Uniden America Corporation
VoIP and Business Comm. Groups