CNET PRIZEFIGHT: Internet phones vs. plain old telephone service

Regular phones vs. VoIP
Round 1: Price
Clobbering the competition on cost

The bell rings, and VoIP comes charging out of its corner, swinging wildly with its low-cost monthly plans. In fact, a price war is raging, with VoIP providers dropping their monthly rates to combat price drops from competitors. Most VoIP providers offer a low-cost, unlimited monthly plan and bargain-basement per-minute rates for international calls. If you have friends and family overseas, VoIP service can save you lots of dough. Even without international acquaintances, you can save money with an Internet phone because your new monthly bill won't include the heavy taxes and fees that you see on your current phone bill. VoIP services charge between $20 to $30 a month for unlimited minutes in the United States and Canada, while your current phone bill probably exceeds that amount each month before you even pick up the phone.

POTS takes a beating as the round progresses. Most POTS offerings, unlike VoIP, nickel-and-dime you for added features. If you want to add caller ID, voicemail, three-way calling, or call waiting to your traditional phone service, you're asked to pay a few dollars each month for each service you choose. A dollar here and a dollar there adds up quickly. With an Internet phone service, these basic features are included at no extra charge.

Winner: VoIP