Bogen agreed it was too early to say Vonage was launching a price war. "It isn't really a war yet, but there are some skirmishes," he said.
The competition, however, is expected to get very intense when cable companies enter the market, Bogen said. They're expected to offer Internet calling in a bundle with standard Internet service and cable TV, giving telephone companies a serious challenge for consumers' wallets.
Besides clashing in the market, Vonage and AT&T are also fighting in court. Vonage sued AT&T after it launched CallVantage in March, claiming the name was too close to Vonage and AT&T was trying to leverage the smaller rival's success. The suit is pending.
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