Omma is offering a new telephone service, that will challenge both traditional telcos and VoIP upstarts. After buying their $399 handset, all domestic telephone calls are free. Revenue will come from hardware sales and international calls. (Of course, customers will also have to broadband access.) The initial rollout is by invitation only.
The range VoIP services are still very much in flux. Vonage still facing some potentially devastating legal battles. VoIP startups, like SunRocket, are going under all the time, as their low rates, increasing competition from cable and traditional telcos, and high legal fees have not panned out as viable business models.