TELECOM Digest OnLine - Sorted: VOIP for Life?

VOIP for Life?

Lisa Minter (
Tue, 07 Dec 2004 19:27:40 -0500

VOIP for Life?

Just when you thought the VOIP price wars could go no further, Dedham,
Mass.-based RNKVoIP announced Monday that it will offer a $999
'phone for life,' an unlimited VOIP calling service. RNKVoIP, a
division of RNK Telecom is a privately held telecommunications carrier
that provides wholesale services for broadband providers, carriers,
and retail distributors.

The move is not a huge threat to Vonage or any of the other VOIP
carriers with nationwide or international reach. But it is significant
in that it calls out residential VOIP service for what it really is --
a low margin service differentiated mostly by clever marketing and
cutthroat pricing.

[The carrier's president and CEO Richard Koch] says that based on
residential customer calling averages, RNK's costs to maintain
phone-for-life customers are miniscule. "If you stay our customer for
ten years, we'll have only spent about $400 of the $999 you paid," he

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