Is Vonage VOIP Worth It?

With today's popularity of broadband, the dream of free phone calls on the net has become a reality. The technology is called VOIP, or voice over internet protocol. One of the most popular VOIP providers is Vonage, who promises to lower your phone bill substantially.

In this article, we'll take a closer look at Vonage's VOIP offering and how it compares to other popular VOIP phone providers.

Overview of Vonage VOIP

Vonage is one of the most popular VOIP service providers, albeit the most expensive. But there's a reason for the added cost: Vonage offers the most features of all its VOIP competitors.

Vonage hopes that when you see these 25 cool features along with numerous additional features you can add on, you'll be willing to pay the extra price. The popular VOIP phone provider offers both personal and business calling plans on the net.

How Does Vonage Work?

Like its competitor Ooma, Vonage is primarily home-based.

When you purchase a Vonage router, you plug it into your broadband connection. You then plug your regular telephone into the VOIP router, obtain your new Vonage phone number, and you're ready to place a call. You can find some great deals on new and reconditioned Vonage routers on their website.

To assuage the calling needs of those who are mobile, Vonage offers a cool product called the Vonage V-Phone. The V-Phone is a small USB keychain flash drive that you plug into your PC to make and receive Vonage phone calls and to enjoy all the calling features of Vonage through your laptop computer.

Vonage Features and Service Plans

Vonage offers three calling plans: Residential Basic 500, Residential Premium Unlimited, and Vonage Pro. With each plan, you get free local and long-distance calling anywhere in the United States, Puerto Rico, and Canada; unlimited incoming minutes; and 25 calling features including:

* Voicemail

* 911 emergency dialing

* Caller ID

* Phone number porting (keep your old phone number)

* Call waiting

* 3-way calling

* Call forwarding

* Enhanced 411 directory assistance ($.99 per call)

* Weather information

At $17.99 per month, Vonage's Residential Basic 500 plan gives you 500 minutes of outgoing minutes, unlimited incoming minutes, local and long-distance calling within Canada and the U.S. (including Puerto Rico), and all 25 of Vonage's flagship features.

The Residential Premium Unlimited Plan is Vonage's most popular plan. For $24.99, you get the same service as the Residential Basic 500 plan with the addition of unlimited outgoing minutes and free long-distance calling to Italy, France, UK, Ireland, and Spain. This makes the Residential Premium plan great for those who make frequent calls to friends and relatives in Europe.

For even more features, you can purchase the Vonage Pro plan which runs for $34.99 per month. With this upgrade, you get all the features of the Residential Basic 500 Plan and the Residential Premium Unlimited plan with the addition of Vonage Companion software phone for your computer, free international 411 directory assistance, and Vonage Visual Voicemail (transcribes voicemail messages to text).

Limitations of Vonage

Vonage's principal limitation is its hefty cost. At $24.99 per month for the basic package, Vonage is the highest priced VOIP provider by a longshot: higher than MagicJack, Ooma, and Skype. Its per-month billing structure may turn away some customers who would rather pay one fee annually.

But at the same time, Vonage's numerous features and add-ons in addition to the cool mobile V-Phone product may cause VOIP phone service shoppers to take a second glance.

Vonage offers both basic and enhanced 911 (E911) emergency calling as a standard feature. But like all VOIP phone providers, you won't have telephone service if your electricity goes out. Thus, Vonage is not a replacement for your current landline or cell phone service.

Vonage: The Bottom Line

Over a one-year period, Vonage's Residential Premium Unlimited Plan costs $299.88. As a comparison, Vonage's competitor Ooma charges a one-time fee of $249.99 with no monthly fees. And MagicJack VOIP charges $39.95 for initial setup, then $19.95 per year ($1.66 per month) thereafter.

Bottom line, if you're making frequent long-distance calls to Canada and/or Europe, you'll love the savings from Vonage VOIP. If you want a full suite of really cool features that outpaces any other VOIP provider, go with Vonage.

But if features and international calling aren't that important to you, less expensive options are available that will save you even more money.