I meant to blog this but it just slipped by, so read Jon Arnold, who did.
The price drop by AT&T further goes to support my belief that cost of phone calling will continue to drop to zero, and that the business models of companies like TelEvolution with PhoneGnome and iotum, GizmoProject (i.e. SipPhone) and even AOL with AIM PhoneLine's future plans will be the real winners in the straight out VoIP game as they all get the applications angle very clearly.
AT&T from the start with CallVantage focused on an advanced feature set that delivered smart "locate me," conference calling, do not disturb, speed calling and more. So too did TelEvolution's PhoneGnome, which has continued to add features that people want and need to have as they desire more connectivity and a single solution.
Vonage on the other hand has not added much, if anything since their inception, and only dabbled with even looking at anything new, other than some spam, um, email lists to lure new customers.
So with AT&T and likely others lowering their prices, Vonage will at some point either have to lower prices, thus putting more pressure on their stock price, or find a way to innovate.
The latter could occur, but there will need to be many more changes inside the company for that to occur. AT&T on the otherhand will likely roll CallVantage into a cross over play with Cingular Wireless, plus their IPTV and WiFi efforts, as the IP platform is built for the future, not for the past.
Rich Tehrani has some points on this as well that he posted late last week.