At Vonage, the company is trying to outpace its competition by offering unique services and strong customer support, according to Grikas. Prices range from $14.99 per month for a basic residential plan, to $34.99 per month for a package that offers visual voicemails, directory assistance and free calls to five European countries.

Skype, meanwhile, has positioned itself as a global service that is cheap, convenient and easy to use, said Christensen. It has about 338 million registered users across the globe, and a significant number are expatriates who use the system to make free calls to family.

For Seiffert, even though his group represents all the suppliers for VoIP products and services, the Internet is still the way to go.

"It reduces first of all your cost, but it's also reliable and flexible to your business environment and your home life," Seiffert said. "People want to be able to have access to their information 24-7, wherever they're staying, and this will allow them to do it."

---

E-mail: nwarburton@desnews.com