Hardware VoIP with no monthly fee
Ooma is less expensive than Vonage (*Est. $10 to $25 per month) in the long run, since the only fee for basic VoIP service is the cost of the Ooma hardware (you will have to pay government taxes and fees, about $3.50 per month). The Ooma Telo, which you can use with your existing cordless phone, is an upgrade to the original Ooma hardware and promises better call quality. However, you'll need to buy special Ooma Telo handsets (*Est. $50) if you want any extensions or to take advantage of the Ooma Premier services package (*Est. $10 per month), which includes three-way calling and voice mail forwarding. Reviews say call quality is similar to that of Vonage, and you get a virtual second line so two people can use the system at once. Basic features such as voice mail, call waiting and caller ID are included.