Skype vs Vonage
Which is the Best VoIP Phone Service?

Skype vs Vonage: the comparison of these options is an excellent starting point when selecting a cheap home phone service. It's an exercise that highlights the differences between the first and current generation of voice over IP providers. The Vonage phone service is one of the best known residential VoIP services, but it operates very much like a traditional land line phone service provider. Skype on the other hand has little if anything in common with traditional home phone service providers.

Skype vs Vonage - No Bills

For a start don't expect Skype to send you a phone bill. It's a prepaid home phone service. Customers either buy credits or a subscription that entitles them to use the service. If they decide to move onto another provider they simply stop buying credit. Because Skype doesn't generate phone bills, it saves hundreds of millions of dollars that would otherwise be blown on billing systems and administration. It's one of the main reasons why Skype can provide a cheaper online phone service than Vonage.

Which is the Cheapest VoIP Service?

Most of us get a Skype account so we can make free online phone calls to other Skype users. While not everyone has an account there are at least 500 million active users (versus 2.5 million Vonage subscribers), which means you can call a lot of people for zip.

But Skype isn't a completely free home phone service. To call land line phones and cell phones, or anyone who doesn't have a Skype account you must first buy some Skype Credit or a subscription. Unlimited Country or World subscriptions provide the cheapest call rates.They are an ideal solution for anyone who needs to make a lot of calls. Alternatively, simply buy some credit and pay as you go.

On the other hand the Vonage phone service is substantially more expensive. Subscribers pay at least $14.95 per month for a basic service, but the average is closer to $30 per month.

Phone IP Equipment

From day one subscribers to the Vonage phone service have been able to use their existing handsets and cordless phones. They are plugged into a Vonage router or adapter and generally that's it. On the other hand the great majority of first time Skype users connect via a computer. As most already own a PC or Mac it means that they don't need to acquire special adapters or other Skype hardware to use the service.

There's nothing to stop Skype users from hooking up their land line phones via a Skype adapter. They are cheap and there are dozens to choose from. Alternatively there is an enormous range of third party Skype hardware including cordless phones, corded phones and WiFi phones. In addition there is Skype for iPhone, Skype for Blackberry ... and almost every brand of mobile phone.

Online Phone Numbers

An Online phone number or Skype phone number can be used like a regular phone number, but they are much more useful. They can be used as a toll free number or point of presence in one or more overseas locations. They are also excellent for staying in contact with friends and relatives when traveling.

Quality of Service - QoS

We would be skeptical about any Skype vs Vonage comparison that indicated either service delivered better QoS than the other. There are too many variables beyond the control of either Skype or Vonage that can affect the quality of the service. Not the least of these being the speed and stability of broadband services, incorrectly configured routers and interference from WiFi networks.

Video Conferencing

Free video conferencing whether for business or personal use is one of Skype's best features. While most of us have joined a Skype video conference via our computers, there are now Skype video phones that can be used without a computer. For whatever reason the Vonage telephone service does not offer web video conferencing as either a free or paid service.

Skype vs Vonage - Summary

While Skype continues to acquire new customers and grow at an impressive rate, it's difficult to see how Vonage can hold it's existing customer base. There are now hundreds of SIP based voice service providers offering a similar service. Furthermore, consumers in 2010 are much more familiar with residential VoIP services than when Vonage signed up it's first subscriber in 2002. We wonder how many new subscribers will be willing to sign up and pay a premium for a phone service in 2011 and beyond.

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Broadband Internet Phone Service VoIP - so why hasn't everyone switched to a cheap home phone service?

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Skype Security - anyone with concerns about the privacy of their land line phone calls should consider getting a Skype phone number.

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