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Vonage service to retail at CompUSA outlets

The deal raises the number of stores that sell Vonage service beyond 8,000.

Retailer CompUSA on Tuesday agreed to sell Vonage's Net phone service at 229 of its stores.

The deal will increase the total number of North American stores selling the company's VoIP services to more than 8,000, Vonage said. Because they bypass regulatory fees levied on traditional wireline networks, calls made over Internet Protocol are cheaper.

Users who already have a high-speed Internet connection can get the Vonage service at CompUSA by purchasing a wireless Net access device sold by Linksys, a division of Cisco Systems.

Vonage recently struck a deal with Linksys to offer a $50 mail-in rebate on the company's WRT54GP2 Wi-Fi router, priced at $130. The rebate is available only after 90 days of Vonage service.

The options available to users are a $14.99 package for residential users and a $49.99 plan for small businesses. Both allow unlimited local calls in the United States and Canada.

The phone service provider has also recently revealed its plans to debut a videophone service by first quarter 2005.