Cheap Phone Service

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Cheap Phone Service

Here's an excerpt from Phone Service at $199 per year.

A start-up company will use Internet technology to offer flat-rate phone service for $199 a year.

The service, from a company called SunRocket and started by former MCI employees, includes unlimited local and long-distance calls as well as two new cordless phones.

Serving about 50 markets--including the Chicago area--with fewer than 50 employees, SunRocket illustrates how easily entrepreneurs with little money can start a phone company using what's known as voice over Internet protocol.

Ok, $199/year works out to $16.58/month. I'm not sure why they are offering a "yearly" charge as opposed to monthly. In the article it states, "SunRocket's main appeal is that unlike the $40 or $50 flat-rate monthly calling plans offered by traditional phone companies, there are no fees or taxes to inflate its once-a-year charge. Because the technology is new, government officials haven't settled upon rules for regulation and taxes."

However, as far as I know, Vonage, Packet8, and all the other VoIP service providers that offer VoIP services on a "monthly basis" (not yearly) ALSO don't have to pay fees, taxes, surcharges, etc. I don't get it.

So this looks to me like this VoIP provider has a hefty "up front" charge that most people wouldn't want to fork up. Maybe I'm missing something? Let me know if I am in the Comments. Thanks.

Here's the full story:
Phone service at $199 a year: South Florida Sun-Sentinel

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