Skype had found some serious competition when SIPphone launched the Gizmo Project on July of 2005. Gizmo Project is a peer-to-peer VoIP network that basically offers free VoIP calls and get this - free calls from Gizmo to landline in over 60 countries around the world! Unlimited calls for an unlimited time! That may be a very difficult offer to beat - and it's definitely not a promo, it's an ongoing service SIPphone offers for anyone who registers an account with Gizmo and downloads its free messenger/ phone software.

Since Skype had been in the lead in the free phone industry, SIPphone had the chance to pry on Skype form a distance, discovered what it lacks and deliver to the market the features that were overlooked and not offered by Skype.

Gizmo Project features call recording and voicemail-to-email. These features may not sound new to you - but Gizmo added a new twist to Free VoIP calling. Now you can receive incoming calls on your computer or on your landline of mobile phone. They call such service as "Area775". Customers are charge £1.00 per received incoming call or they can also opt to pay a monthly fee instead of a per call charge.

Getting started with Gizmo is quite easy. Go to their website and get a free Gizmo Project downloadable to start making free calls. You can choose your desired username and an SIP phone number would be assigned to you. You can use the software with Windows 2000 & XP, Linux (Linspire) and Mac OS. You might need to double check and modify your firewall (specially if you are using an office computer) before you can get the Gizmo Project to work perfectly in your computer.

The Gizmo Project pretty much works the same as the rest of the instant messengers when it comes to PC-to-PC messaging. It comes complete with address book and familiar icons that you can play around with. You can also use your Gizmo to IM your friends on Google Talk. The Gizmo messenger has several features that would definitely make your instant messaging experience more interactive.

On to the phone features of Gizmo Project - the sound quality of voice calls is superb. It uses the same technology as what Skype presently utilizes - the Global IP Sound's Voice Engine Technology. If you pair up Gizmo with a top-quality headset, you would most definitely say that it has better sound quality compared to a standard land phone.

Gizmo Project also leveled up on how conference calling is done. Unlike other messengers, Gizmo uses a server-based system that yields approving results. It can run using its own system or can be used together with the services of FreeConferenceCall.com.

Gizmo Project also provides PSTN services at .05¢/minute, which is by far cheaper than most VoIP phone services. Members can buy call out times for a minimum of £5. Sound quality is superb and you would get (almost) instant activation upon payment. If you are in the US and UK, you can also purchase a Direct Inward Dialing (DID) where you will be given a series of phone numbers that you can integrate with a PBX system.

Gizmo project has indeed taken VoIP telephony a step further and UK Broadband Providers are going to build on it. It uses internet-based technology to provide beneficial features that can be used for your personal and business communication. And the good thing about it is - it's free!