Vonage Cuts VoIP Starter Kit To $30

The already inexpensive Internet-telephone service is about to get a little more inexpensive, with the announcement that Vonage is cutting the price of its starter kit to $30 at retail stores. The company said the cost of starter package--an adapter and two months of Vonage service--has been lowered at 5,000 retail stores, including Best Buy, Circuit City, Fry's, and Radio Shack. The limited-time offer costs $79.99; a $50 rebate brings the final price to $30.

The firm also sells different monthly calling plans, ranging from a $14.99 basic residential plan for 500 minutes of local, toll, and long-distance calling in North America, to a $39.99 small-business plan that includes 1500 minutes of calling throughout North America. The services come with several additional features, such as voice mail and call forwarding. With more than 150,000 subscribers, Vonage is considered the consumer-market leader. Large telecommunications firms, such as AT&T, are, likewise, rushing to join the VoIP boom, but they haven't released market numbers yet.

In another VoIP development, i2 Telecom International said it began delivering its InternetTalker MG-3. The device is the platform upon which it plans to develop future releases of its technology. The MG-3 has a feature that enables subscribers to call their i2 Telecom service from a cell phone and transmit calls over the Internet.