Round 3: Features

There are a number of phone features we can't live without, and Vonage gets that. With your Vonage account, you get free voicemail, caller ID, call return, international call blocking, and call hunt. Within voicemail, you have even more options: you can configure your account to send a voicemail notification to your e-mail account either with or without a WAV file version of the voicemail. Also, when you set up your account, you can choose to either have your current number transferred to your Vonage account or you can choose a different area code altogether. Additionally, for $4.99 per month, you can choose another virtual phone number so that your parents can call an L.A.-based number and your kids can call a N.Y.-based number and you spare them a toll call--even though you're actually in Florida. Vonage also supports faxing, a feature that most VoIP providers lack. Business customers get a fax line for free, while residential customers will have to pay $9.99 to activate a fax line.

When it comes to features, Skype skimps. Free features include conference calling (to up to four additional callers and up to nine if you're on an Intel dual-core machine), instant messaging between Skype users, and Skype Video, a video calling service between Skype users (available in Skype 2). The SkypeIn feature allows you to purchase up to 10 traditional phone numbers so that non-Skype users can still call you (they'll pay their standard long-distance rates, if applicable). SkypeIn users get free voicemail, a feature that otherwise costs a hefty 15 euros per year (approximately $18). Skype 2 also has extra features such as avatars and ring tones, but you have to shell out for those, too.

The winner? This round clearly goes to Vonage.