my telephone service is through my cable and internet company, and Im not 100% certain...but Im pretty sure its the same concept as Vonage. So far Ive been perfectly satisfied with the quality...and you're right without a doubt...its MUCH cheaper than the phone company!!! I was able to keep my original phone #....long distance is free in the continental US...call waiting with caller ID, call forwarding...all included.Theres a modem connecting a phone jack to a cable wire...and after its installed, ya never even know its there. Ive only had to reset it one time after a power outage.