SIPPhone (The Gizmo Project)

Based: San Diego, CA
www.sipphone.com
www.gizmoproject.com

When your competition is Skype, how can you possibly compete with free? The Gizmo Project does it by building a VoIM product that's based on open standards. That means that the SIP-based Gizmo works with Google's Jabber protocol, which lets it work with Asterisk as well. It also paved the way for building Gizmo into the popular LiveJoural blogging tool. Calling out to the PSTN costs a penny a minute; calling in costs $3/month. And because it doesn't rely on supernodes, network admins have less reason to be suspicious of personal VoIP.

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