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Vonage in Canada

From Om Malik — Vonage goes to Canada. Of course, you read it here almost two weeks ago ;).

Om writes:

Vonage announced that it is going to offer its service to Canadians and will charge them pretty much the same price as what it is charging in the US. It is going to put a lot of pressure on the incumbents to offer similar services and force them to match Vonages price. The broadband penetration is much higher in Canada and that is what makes it an interesting and perhaps one of the more lucrative VoIP market.

I’m not so sure he’s right on this one.  Much of the savings of VoIP in the US comes from avoiding the myriad state-to-state taxes.  If you can trim a penny or two per minute off the cost of a call, then you have a compelling value proposition.  We have a flat per call regulatory tax in this country.  The opportunity to avoid the tax isn’t available.

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