What happens when dozens of telcos, cable companies, P2P developers and even beer companies decide to rush into offering VoIP? We're about to find out. CNet reports on the recent price warfare going on in the industry, where many providers are willing to take losses in order to gobble up the most customers.

Our VoIP forum maintains a list of the current hardware-based providers. There's also an increase in the number of free providers out there, including one sponsored by Labatt's beer (see ZDNet report), and services such as Skype (see "Skype Hype"). While companies have been busy trying to undercut one another, $30-$35 a month has emerged as the industry standard, with analysts essentially in agreement that anything less isn't sustainable.

Qwest this week became the first bell to officially throw their hat in the ring, saying they'd soon be offering VoIP service in Minnesota, with other markets to follow. Since a Minnesota federal judge ruled that VoIP providers in the state don't need to adhere to telco guidelines, Qwest jumped at the chance to join the fray. They've yet to offer price details or dates, but it puts them in the odd position of having to compete with themselves for voice service.

As discussed in our VoIP forum, AT&T has been conducting a beta of their own VoIP system, which offers free service until the trial ends on February 29, 2004. Users interested in the beta can sign up at the AT&T Consumer Digital Solutions website.

The majority of cable companies are also feeling the pressure and are accelerating deployments. Time Warner is busy applying for rights to offer cable telephony services in its markets, with Comcast and Cox speeding up their own trials. Adelphia is holding off on their deployments because, as we mentioned yesterday, they've got bigger fish to fry. Users in our forums recently gave their impressions of Optimum On-lines new "Optimum Voice" service.