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There are hundreds of VoIP phone service providers offering free online phone calls, but there is usually a catch. They are only free between users of the same service. It's a tried and proven strategy for acquiring new customers. Not only are consumers motivated to get something for nothing, they are also given a reason to recruit friends and relatives as well. Inevitably some of the new subscribers are tempted to try out the cheap home phone service or unlimited calling plan ... and money begins to flow. Skype vs VonageIt may sound absurd, but the offer of a free Internet telephone service can be a far more effective sales tool than the most expensive advertising campaign. Let's contrast Skype with the Vonage phone service. Skype Phone Service
Vonage Phone Service
Mention free online phone calls and most of us immediately think of Skype. It's a strategy that definitely worked for the entrepreneurial pair who founded the business. Almost three years after kicking the business off they had a $2.6 billion pay day courtesy of eBay. The investors at Vonage have not done quite as well as Niklas and Janus. Alternatives to SkypeThere are have been dozens of attempts to replicate the success of Skype by offering free online phone calls in one form or another. They include: Vbuzzer, VoiP Buster, SmartVoip, OoVoo, Google Talk, iChat, Jajah, VoiPium, Gizmo5 ... , but Skype is a hard act to follow. It's the brand that most of the world immediately associates with free phone calls. Successful challengers must now offer more than free calls between friends and relatives using the same service. MagicJack vs OomaThe biggest threat to Skype are the new online phone services that enable users to make free online calls to almost anyone-anywhere. There is always a cost but it's no longer a call cost. Magic JackIt's a free Internet telephone service that secured two million subscribers in it's first year of operation. They happily paid $40+ to buy an over sized thumb drive to plug into their computers and make free phone calls from a home phone. That's $80 million plus in the first year and another $40 million in subsequent years. Not bad for a free home phone service, but we suspect it's just the beginning. OomaWhile millions of people have managed find $40 to buy a MagicJack the cost of an Ooma phone has presented more of an obstacle. At the end of 2009 there were just 100,000 subscribers to the Ooma phone service. For the additional up-front cost users can make free online phone calls without a computer and enjoy superior voice quality. While MagicJack is undoubtedly a threat to the Skype phone service, we suspect that Vonage perceives Ooma to be a greater threat. It's unlikely that many Vonage customers will switch to an alternative that requires a computer to be switched on before a phone call can be made or received. On the other hand the average Vonage subscriber paying $30 per month can recover the cost of an Ooma phone within seven months. From then on the ex-Vonage subscriber can enjoy free online phone calls and save at least $350 per annum without any concern about penalties or charge backs for early termination.. Final ThoughtsIt's every consumer's duty to escape from the clutches of their local residential phone service and spend the savings on a worthwhile cause. It's unlikely that there will ever be a completely free Internet telephone service, but the options above are close. Related Reviews and ArticlesSkype Free Download - since 2002 when the Skype phone service kicked off there have been billions of downloads. There are now over 500 million active subscribers and it has become the most used international phone service. Skype Review - the pros and cons of the world's most popular phone service. It's much more than a free VoIP phone service. Best Skype Cordless VoIP Phones - look no further. From Free Online Phone Calls to Cheap Home Phone Service From Free Online Phone Calls to Best Cordless Phone Reviews and Ratings |
 
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