Cablevision Latest to Slash Voice Rates

by Bruce Stewart

Hot on the heels of Skype announcing free SkypeOut calling to the PSTN within the U.S. and Canada for the rest of the year, Cablevision has just slashed voice rates in a new and interesting way, by drastically reducing the cost of international voice minutes for their customers. Cablevision announced today a new calling plan that includes 500 minutes to anywhere in the world for a flat fee of $19.95 a month (with additional blocks of 500 minutes also being available for another $19.95). TechDirt applauds the plan and thinks Cablevision has a leading edge among the cable companies in capitalizing on IP communications:

Cablevision continues to demonstrate that they get the appeal of the triple play. While other broadband operators think of it as a way to raise prices and tack on charges, Cablevision realizes that the appeal to the consumer is in adding features and cutting prices.

Cablevision isn't the only VoIP carrier to reduce international rates, Vonage and Skype have been doing this too, but with the surge in VoIP uptake the cable companies have been seeing recently, this is surely another blow to companies like Vonage that are trying to tie their value propostion mostly to the price of voice calls. We've said it before, and we'll say it again: the cost of voice traffic is clearly approaching zip, zero, nada...