8x8's half-off sale

8x8 has announced a year-end 50 percent off special for new subscribers to its Virtual Office Phone service.

Businesses who sign up for the Virtual Office hosted PBX service can now pay $24.99 per month per extension if they subscribe by December 31, 2008, instead of the usual $49.99 per extension. They also can choose to pay $250 per extension in a one-time annual fee for the first year. New customers have to purchase 8x8's new IP phones and agree to keep the service for at least one year to be eligible.

Interestingly, we don't expect to see "relief" business packages from other VoIP and IP communications providers by the end of the year. All the others are sticking to the "we save you money over traditional phone service" line and seem to be reluctant to engage in a significant price cut/discount package for fear of trigging a price war - something no one wants at this point in time.

Life may be more interesting over on the consumer side in larger markets, however, with cable companies attempting to add more ARPU and/or suck up more market share from phone companies. Since October, Comcast has been offering free cable service with the purchase of Internet or phone service.

For more:
- Read the press release [1] from 8x8.