Many companies over the past 5 years have tried to make a business plan using ATA devices. The most popular is Vonage. Vonage has spent literally 10s of millions of dollars on advertising and have established a good market. Their latest adds say they are a million customers strong. I can remember when they were just in a few local markets. Many companies have followed their lead like USP Connect, Packet8, Sun Rocket, etc … All these companies have worked out agreements with national and international carriers like ATT, MCI, WorldCom, etc… to pass to them SIP traffic and vice versa. This allows them to offer full residential telephone service over the Internet. The dirty little secret that telephone companies will not tell you is that, it is whole lot cheaper to route with SIP than normal analogue phone systems. Therefore, since these new companies do not have to pay for copper telephone wire in the ground like most telephone companies, or for big analogue based switches, their prices are a lot cheaper. Also, Internet based telephone systems are not taxed like local telephone companies. It is not uncommon to get telephone service from $9.99 for 500 minutes a month to $24.99 for unlimited long distance and local calls. You may have to pay a federal excise tax of $2.00 or so, but not all of the crazy taxes and fees like a company like Qwest would charge. It is impossible to understand the bill most of time with Qwest. Qwest, Verizon, SBC, Sprint and other local traditional telephone companies can charge more than $20 a month in taxes and fees. They advertise a $20.00 a month special but then add $20.00 in taxes and fees which are never explained to you. They also have a nasty habit of selling your telephone numbers to telemarketers that inundate you until you can get on the National Do Not Call List. On top of that they will charge you extra for Long Distance. I am always amazed the way people are brainwashed to think they are getting a good deal at $20.00 a month when in reality it is more like $55-$75 a month with taxes, fees, and extra packages.

The other thing you get with SIP based phones are all the new bells and whistles like Call Waiting, Call Forwarding, Voice Mail, and 3 Way calling without additional cost. It is just included in their base packages. International calls are also significantly less expensive as well. It is not uncommon to be able to call Asia for 2 or 3 cents a minute or Europe of 1.5 cents a minute.