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In the US Skype is the cheaper compared to Vonage for a VoIP telephony service. The Vonage offering is simpler to understand and install and will be better suited to users who find it hard to program a VCR.

The Vonage VoIP service is a better land-line replacement service than Skype. With Vonage you can keep your existing phone number, emergency calling works, and you can use your existing telephone. None of this is true with Skype. For some people this will be a problem and comparison on price is no longer relevant.

Assuming the above key differences don’t worry you then see below costs a 12 month Skype and Vonage service.

Skype will work directly from a computer so the Phillips841 is not required but for the purposes of comparison lets assume some people actually turn the computer off! The Phillips841 is the cheapest telephone handset available to use with the Skype service that works without needing to keep your computer on.

SkypeIN is the service that provides a real telephone number so other people can call you (not a standard feature). So the Phillips841 behaves like a “normal” phone you need SkypeIN.

The separately purchase of the Phillips841 and SkypeIN makes setup of the Skype service more involved compared to Vonage which uses your existing analogue telephone and comes with SkypeIN features as standard.

Currently both Skype and Vonage have unlimited calling plans that makes differences in call rates irrelevant. Both Vonage and Skype charge for international calls by the minute, but when you consider how cheap they are and the amount of international calls you actually make there unlikely to be a significant difference between the two companies.

So if you live in the US and you want to save money and you can program a VCR then Skype may just be for you.