Lisa Minter (lisa_minter2001@yahoo.com) Tue, 07 Dec 2004 19:27:40 -0500

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http://www.lightreading.com/document.asp?site=lightreading&doc_id=64171 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 says. Full story at: http://www.lightreading.com/document.asp?site=lightreading&doc_id=64171

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