AT&T has trimmed the price of its CallVantage broadband phone service from $40 to $35 a month, further evidence of an unrelenting Net-phoning price war.

AT&T’s price cut comes after critics said the $40 was too high to keep the service competitive, and after No.1 VoIP provider Vonage reduced the price of it’s most popular plan by $5 to $30 a month.

Time Warner Cable has also begun offering Voice over IP telephony, at an even higher price of $39.95 to $44.95.

Analysts expect even more price cuts as the battle for VoIP dominance heats up.

Source: CNET News.com.

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