Vonage Cuts IP-Telephone Rates


Internet-telephone company Vonage Holdings Corp. cut its monthly subscriber fees for unlimited local, regional and long-distance telephone service by $5 to $29.99.

The move will allow Vonage to undercut competing Internet-telephone packages from major cable operators. Time Warner Cable charges its Internet-telephone customers $39.95 monthly, while Cablevision Systems Corp. charges Optimum Voice subscribers $34.95.

More price cuts from Vonage may be on the way, a spokeswoman said. The move could force cable operators and telephone companies to reduce their monthly fees for burgeoning Internet-telephone services.

Vonage -- which markets its voice-over-Internet-protocol service to existing cable-modem and digital-subscriber-line customers -- counts 155,000 subscribers.