VoIP drives telco prices down

The New York Times has discovered that economics textbooks are actually correct: New, technologically sophisticated entrants in a market really can drive prices down. When it comes to phone service, the Times says, VoIP carriers like Vonage and cablecos are forcing legacy telcos to drop their prices and repackage services. Telcos spin their disappearing lines by saying that most of them were second lines that customers are replacing with broadband, but that may be a Trojan horse: once broadband's in the house, how far away is VoIP for a customer focused on savings?

For more information about falling legacy telco prices:
- check out this article from The New York Times