Tesco does Voice over IP

TESCO'S Voice over IP (VoIP) offering includes everything (bar a PC and a broadband connection) you need to start making Internet telephone calls.

Similar devices often come with the software and the phone, but don't include any credit to make calls straight away, while some - such as Vonage's kit - offer software and hardware as well as inclusive calls, but no handset, writes Anthony Dhanendran.

For use on a Windows PC (it won't work with Macs or Linux-driven PCs), the Tesco Internet Phone comes with the VoIP software and a voucher for £5 worth of calls.

You can also choose a local dialling code for wherever you are in the country (or the nearest supported exchange). However, we found many area codes were missing and the closest match for a London code was 0203 instead of 0207 or 0208.

It uses a proprietary VoIP carrier so isn't SIP based. This means that although calls to other Tesco users are free, calls to other VoIP users are not.

Calls to standard landlines start at 2p per minute, so while it may not be great news for people who call mostly local numbers, depending on the countries you're calling it can be a reasonable deal for anyone calling overseas regularly. A full list of countries and charges is available on the Tesco website.

Call quality is good, although not up to what you might expect from a landline-to-landline call and we've heard better on rival VoIP services. The software can be controlled using either the on-screen keypad or the keypad on the handset.

Usefully, and unlike some other VoIP handsets, it didn't interfere with the PC's normal sound operation, so we were able to listen to music through the speakers at the same time as making a call using the handset.

The Tesco Internet Phone offers a complete VoIP package for a very reasonable price, but as with all USB VoIP phones you'll need your PC turned on 24/7 if you want to use it like a standard phone, and it ties you to making and receiving calls near your computer.

But it does only cost £20, and until 14 May, Tesco is running a special offer and charging only £14.97 for the phone.

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