Internet Phoning Evolves Quickly Into Cheap Commodity

Driven by the expansion of broadband internet access, the once-sparse internet phone business is a crowded — and increasinly fierce — place these days. As Vonage prepares for a possible IPO, the Wall Street Journal sees a replay, in part, of the long-distance wars with that crowded field consolidating back down to a few large companies.
Skype and other free IP phone services increase the financial challenges for the full-phone IP providers. Skype CEO Niklas Zennstrom says the company would rather make $10 a year from a millions of customers than aim for a smaller base of high-paying subs. “Google has $10 average revenue per user, per year … We want to be as good as Google or Yahoo,” he told the Journal.

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