In the US today, many telephone and internet providers are competing with each other in getting as many homes equipped with VoIP as possible. Most of these companies offer bundle packages where internet connection and VoIP telephone connection are given for a very small fee. The top two competing companies in the US today are Vonage and AT&T. Let’s talk about the differences and similarities of what these two companies are offering in this VoIP review.

*Monthly Subscription*
Vonage offers a monthly subscription fee of $14.99 for the first 6months of signing up. Then the rate will increase to the regular fee of $25.99 a month. AT&T U-verse Voice offers their service for a monthly fee of $35. This is higher than Vonage but because of the greater service. AT&T U-verse Voice also caters mostly to small business and enterprise VoIP client.

*Minutes of Free Local and International Calls*
Vonage offers unlimited local and long distance calls to over 60 countries. AT&T U-verse Voice offers the same unlimited local and long distance call rates, but limited only to US, Canada and Puerto Rico. If the $35 per month subscription is too much for you, AT&T U-verse Voice also offers a lower rate of $25 for 250minutes long distance call to the countries mentioned above.

*Clarity of lines*
Both Vonage and AT&T U-verse Voice offers clear and quality lines for your local and international calls.

*Added Service*
Added service like call waiting, voice mails and call forwarding are included on subscriptions to either of the two companies.

*Bundle Rates*
Vonage and AT&T U-verse Voice both offer bundle rates, wherein special telephone features can be added to your VoIP line for a very minimal fee. For the complete bundle rates check out Vonage’s site and AT&T U-verse Voice.

*Value for Money*
If you have friends or relatives living in Asia or Europe, it is best to get Vonage VoIP subscription as they offer free calls to these areas. But if most of your calls are within North America and is thinking of putting up a small business, AT&T U-verse Voice is the best for you.

In contrast to Vonage, the MagicJack service which is a relative newcomer to the VoIP industry has proven to be innovative in price and service packaging. With a low cost of $39.95 for both the MagicJack unit and a year of service, and a $19.95 yearly bill, the MagicJack service already beats Vonage hands-down in regard to service price. Adding to MagicJack’s value is the fact that service includes free long distance calling to the United States, Canada, Puerto Rico, and the US Virgin Islands. On top of long distance services provided by MagicJack, the MagicJack service also includes free directory assistance, phone number assignment, call waiting, voicemail, and caller ID.

While MagicJack and Vonage have only long-term service rates, Skype provides service on both a monthly and “Pay-As-You-Go” basis. With rates from 2.1 cents per minute for Pay-As-You-Go, Skype’s short-term benefits are quite apparent. More so, Skype presents itself as quite the competitor in regard to their monthly service plans by providing services starting from $2.95 a month for domestic calling. Along with their domestic (US & Canada) plan, Skype also provides country-selective services at the cost of $5.95 a month.

Skype’s ‘Unlimited Country’ plan allows the user to select a country in which they can make unlimited land-line calls to for the duration of their month subscription. Skype’s third monthly option is the ‘Unlimited World’ plan, at the price of $12.95 a month, Skype provides landline calls to over fourty countries worldwide. Along with the capability of being able to make telephone calls, Skype also provides the capability to make free PC-to-PC calls which also include video services.

Overall, in the competition between VoIP services, Skype provides the most cost-efficient plan without many frills. MagicJack meanwhile provides the most cost-efficient price which also includes a wide range of special services. Vonage, while being a long-time leader in VoIP services has fallen behind with their use of excessive prices, for services which are now common-place and can be delivered at lower rates by their competitors.

The first point relates to sound quality. When I first got the service I thought the sound quality was comparable to “ma bell”, except when I was using the internet intensely (using file-sharing while watching YouTube) in which case the other party reported I sounded garbled. This may have actually been an issue with my router, though, because I changed routers ten months ago and haven’t had issues in about a year. What some people may not notice, though, is when you call someone else with Vonage. I honestly believe the quality to be crystal clear in such cases. There’s less distortion than on phone lines. When you hear a TV or talking in the background, the voices remain distinct. Another case I have for better sound quality is when calling my friends abroad. They no longer sound a mile away due to signal loss. I almost never get a bad connection now and I would say that in those rare occasions I would have to blamed it on the Egyptian telecommunications, because what few times I do get static it’s usually during the afternoon in Cairo. If you have pen-pals abroad, this service is a must-have. The other issue or lack there of would be regarding usage charges.

Though I only just started getting free calling globally (and still at the same low price which I’ve paid without a rate hike for twenty-six months), I’ve experienced significant international savings throughout my history with Vonage. My former phone provider, MCI, could charge me as much as $80 a month for the limited calling I placed to my old college friends in Egypt and Ireland. As soon as I got my first Vonage bill, I noticed the huge difference, at all times paying less than a dollar a minute for international calling, even to rural places that most providers charge an arm and leg to call. Now, I can call for hours without a worry or care. I haven’t had to worry about long distance charges since even before Vonage, but, with MCI, I was paying nearly $75 for unlimited long distance.

I would definitely recommend anyone looking into VoIP to give Vonage a try.

As far as quality goes, the sound is about as good as a cell phone call, and it is not as clear as a landline. I have found that a corded phone works better than a cordless one. Many of the bells and whistles that regular phone companies charge for are included in the price.

You get voicemail, call forwarding, call waiting, and other features included in the bundle. In addition, you can chose to have voicemail messages transcribed and e-mailed to you for an additional price. In addition, you have the option of adding a “soft phone” to your account. This is a phone number assigned to a computer. This is especially useful for people who travel abroad often, as you can make phone calls to the United States at no extra charge, as long as you have an internet connection.

Billing is also very convenient. You must provide Vonage with your credit card number, and the company then charges it automatically every month. You can log into their website to see your bill and usage. One drawback is that you do not receive paper statements.

Another drawback is that your actual bill will be about ten dollars higher than the nominal charge, because of taxes, fees, and surcharges. Emergency calls (911) are different from a regular landline. Since Vonage works anywhere you have internet, your phone number is not attached to a physical location, so the 911 dispatcher has no way of knowing where you are located. If you want the benefit of the emergency dispatcher knowing your location, you must register your address through the Vonage website. You must do this every time you move.

Though I believe Voice over IP technology has a long way to go in order to become as clear and reliable as landlines, the price is a huge incentive to switch. I would not go back to a regular landline after using Vonage for a few years.