Surfing around today I saw this interesting “lifetime” offer from a New England based telco/CLEC where residential users get a phone number and service for life, all for the price of $999.
That’s equal basically to four years of Vonage or AT&T’s CallVantage in round numbers.
What this basically means is you pay them now. They provide you service, and as long as they keep getting new customers they keep the cash flowing and the doors open, and thus you get the service.
Now, given that there is no regulation of VoIP presently allowed by the states, there is no requirement that your unused payment (which in reality is a credit for future services) is placed in a surety or escrow account (which would make total sense), thus insuring that if the company goes out of business, your money, or some part, is returned.
Hardware Geeks seems to also have a similar viewpoint.
I mean, what part of “lifetime” is not clear. If you outlive the company making the offer, then you’re entitled to your money back, just like if you pass on to the perpetual no call zone a day after you begin service, they don’t have to refund anything or provide service. That would be a win-win.
While I think this is an innovative way to get customers, unless it is a limited time offer, no pun intended, then I’d be somewhat suspect of the offer without reading the fine print.
Jeff Pulver also has a view that’s in line with mine.
Now Mark Evans chimes in with another second on the idea that this offer is indeed, “too good to be true.”