Healthy competition is always good news for consumers. While I am a loyal Skype user, I couldn't resist the temptation to check out another VoIP service called Babble, Launched by a UK company, Babble undercuts the already inexpensive prices of rival service Skype. As well as being able to dial out through Babble, you can also receive calls by purchasing a "real" phone number from them. It also gives your 30 free minutes of calls per day for calling landlines in nearly 25 major destinations around the world.

As advertised, Babble does require ISDN/broadband connections to work and will not operate on even the fastest dial-up connection. Registration is free, the software download is free and there is no obligation to subscribe whatsoever. Voicemail and instant messaging are also free. It doesn't, however, have some of the more sophisticated Skype features like video and conference calling.

So why am I flirting with Babble? Because Babble uses an industry-wide standard called SIP (Session Initiation Protocol), and it may be able to work (not tried yet) on Nokia N80 which has just become SIP compliant.

If you have been waiting for the launch of Wi-Fi Skype phones from Netgear and Belkin – there is something more interesting on the horizon. Philips has introduced a new internet DECT phone that doesn’t need a Wi-Fi network or connection to PC. The VOIP841 plugs straight into your normal land-line connection as well as your ethernet broadband connection. This means you're able to make calls on both Skype and your traditional house phone. So if you dont have wireless network at home, or you are not tech savy enough to play around with your Wi-Fi network, then this phone is for you. It’s expected to be on shelves before Christmas but there's no news on the pricing.