AOL to begin VoIP service in Vegas

Thursday, April 7, 2005 | 11:04 a.m.

Las Vegas is one of 40 initial markets selected by America Online Inc. to receive its AOL Internet Phone Service.

The Voice-over Internet Protocol service is being billed by AOL as a cost-saving alternative to traditional telephone service, and it will join several other VoIP services already available in Las Vegas from providers including Vonage and AT&T's CallVantage.

AOL said a recent survey of 2,000 adult consumers found that Las Vegas-area residents spend an average of $52.53 on traditional land-line telephone bills a month. The company said its monthly package for VoIP service will be $39.99, after a six-month introductory price of $29.99.

Industry analysts estimate that there are about 1 million U.S. VoIP telephone lines, compared to the 113 million copper land lines.

VoIP, however, is growing quickly. The fledgling technology had just over 100,000 lines in 2003, said Daryl Schoolar, an analyst with the market research firm In-Stat/MDR.

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