Skype vs. Vonage

In a way, the Internet is a paradox. Getting access to it in
your home almost always requires you to spend some money. But
once you have that access, you can use the Internet to save
money. You can shop around for lower prices on everything
from electronics to airline tickets. You can also send e-mail
messages, pictures, music and videos without paying for any
type of postage. With Voice over IP (VoIP) services, you can
make phone calls -- even long distance or international ones
-- for free.

Currently, there are several VoIP services on the market. The
two most well-known ones are Skype and Vonage. Although both
of these services use VoIP technology, they're quite
different from one another. In this article, we'll explore
how each of these services works, and we'll give you the
information you need to decide if one of them is right for
you.

Skype and Vonage are similar in that they're both VoIP
services. When you make a VoIP call, you use your computer's
built-in microphone and speakers, a headset, an IP phone or
a phone plugged into an analog telephone adapter in place of
an ordinary phone. This equipment and your computer translate
the analog signal of your voice into a digital signal. The
digital signal travels over the Internet. Once it reaches its
destination, the telephone or computer that answers the call
translates it back into analog sound.

Skype and Vonage are also similar in that they can be
significantly less expensive than traditional phone service.
This is especially true if you make a lot of long-distance
calls. Depending on how you use it, Skype can even be
completely free. But the two services have more differences
than similarities, starting with the steps you need to take
to open an account.

Opening a Skype Account

To start an account with Skype, all you have to do is go to
the Skype homepage and click "Download Now" to download
a free program. This program is the Skype soft phone client,
which includes an on-screen keypad you can use to make calls.

After you install the program, the Skype Getting Started
wizard shows you how to add contacts, make calls and import
contact information from your address book. If you haven't
already signed up for an account at the Skype Web page, you
can also follow a link from the program to create your
username and password.

The Skype application looks and works a lot like an instant
messaging(IM) client. As with an IM client, you can change
your online status, look at your contact list and decide who
you want to talk to. In order to use these functions and to
make calls, your computer has to be on and connected to the
Internet, and your Skype application has to be running.

Calls to other Skype users are free, as are outbound calls to
traditional numbers until the end of 2006. As of January
1, 2007, using Skype to call land lines and cell phones will
cost $29.95 per year (Skype-to-Skype calls will still be
free). To receive incoming calls from traditional phones, you
must purchase Skype Credit and use the add-on SkypeIn
service.

This process is significantly different from what you need to
do to get started with Vonage. While opening a Skype account
is a lot like starting an IM account, opening a Vonage
account is more like getting set up with a new ISP. You sign
up for the service at the Vonage Web page. But rather than
downloading a program, you fill out forms online to
establish your account. Unlike Skype,
the service is not provided for free.

Signing up with Vonage is a multi-step process involving:

* Selecting a service plan (prices start at around $14.99
a month)
* Choosing whether to keep your existing phone number or
get a new one
* Choosing the equipment that will allow you to use the
service
* Entering your name, address and phone number for 911
calling purposes