Compare VoIP Phone Service - Cheapest V.S. Best

Rock Bottom Monthly Cost: $29.07
Month-to-month cost = $29.07
Total sign up cost and 1st payment: $41.88 (they include a free month but charge a $29.99 setup fee, $9.95 for S&H, plus $2.56 for taxes).

Pros

The market leader. They aren’t going anywhere anytime soon.
WiFi phones available. Make calls anywhere you can connect to a wireless (WiFi) access point.
You have a say in which number you get. You can pick a number with your cities prefix and you can choose from a list of four numbers after you’ve narrowed down your search.

Cons

Most expensive
No yearly plan available.
Some of your money will go towards the creation of even more ads.

Summary
Vonage is slightly more expensive than the others but they provide a high level of service. For the extra few dollars a month they’re probably worth the cost.

Visit Vonage

Rock Bottom Monthly Cost = $26.19

Month to Month Cost: $27.54 (After taxes and fees)
Total sign up cost and 1st payment: – $50.49

Yearly – $209.36 ($17.29/Month) – (After taxes and fees) + $29.95(activation) + $14.95 (S&H)

Total 1st Year Cost:– $254.26 ($21.19/Month) + Monthy taxes and fees (They don’t mention this until after you’ve signed up but you’ll pay an extra $4-$6 in fees even if you do the yearly sign up.

Pros

Selected as Best VoIP Service by Wired Magazine
Owned by Primus Telecommunications Group, a leading global telecommunications company with approximately $1 billion in annual revenue.

Cons

You don’t have any say in what number you ultimately get. After you’ve submitted your order it assigns you a number. Unlike Vonage which gives you a choice of a few options.
Generic prefixes instead of city specific prefixes on your phone.

Summary
If you don’t mind having a number assigned to you Lingo provides a good balance of value and service. They won’t go out of business anytime soon and they offer a yearly subscription plan.

Visit Lingo

Rock Bottom Monthly Cost = $14.08
Month-to-month cost: $23.39 (After taxes and fees)

Total sign up cost and 1st payment – $38.34
Yearly Cost – $238.31 (19.86 Month)

Yearly Total Cost – $253.46
Activation/Setup Fee – Free (activation) $14.95 (S&H)

Pros

6 months free with Year signup. Your first 18 months could be $14.08/Month!
$15 Activation Fee waived for online orders.
Transfer Phone Number

Cons

They are small enough that they might go out of business (like SunRocket did).

Summary
PhonePower offers a very attractive rate for their service. The real only issue is if they can stay in business for an extended period of time. If you’re a gambling type give them a try.

Visit PhonePower

Magic Jack
Rock Bottom Monthly Cost = $3.34 (for 1st year $1.67 thereafter).

Setup + First Year = $39.99 and $19.99/year thereafter

MagicJack offers an unbelievable rate for phone service. Unlimited local and long distance calling for $20 a year! As a customer of MagicJack I would only suggest using them as a temporary or secondary phone. We used MagicJack as my primary home phone number for a few months but there were too many issues to make it work. Hopefully those issues will be fixed and I’ll give them another try. I wrote a post about my experience with them here.

Pros

Cheapest option hands down. No one is even close.
Emergency service is available

Cons

You must have your computer up at all times to have it work. It doesn’t connect straight to your router.
Customer Service is limited and only does chat.
Dependability as a primary phone line is spotty

Visit MagicJack