New Jersey firm Vonage has arrived in Ottawa with a new Internet-based telecom service to rival a similar offering from Primus Telecommunications Canada and put more pressure on traditional phone companies.

Vonage's new service, available at www.vonage.ca provides bundled telecom services through the 613 area code.

The services are offered over a Voice over Internet Protocol network, which offers voice and data services over a high-speed Internet connection.

The push is on to sign up consumers for VoIP at the expense of the traditional fixed line phone services that remain the mainstay of incumbent phone companies such as Bell Canada and Telus.

Bell has already taken the initiative to maintain its top position as Canada's largest phone company. In the past eight months, it has signed three deals collectively worth $570 million with Cisco Systems and Nortel Networks for VoIP gear and product development.

The paradigm shift to new Internet-based telecom services has also sparked debate between major service providers and the Canadian Radio-television and Telecommunications Commission over how such services should be regulated. The CRTC wants to slap on the same rules that govern traditional fixed line phone service, while phone companies want much lighter regulation.

Vonage's arrival in Ottawa with its new VoIP service comes four months after Primus Canada, a subsidiary of the Virginia-based telecom firm of the same name, launched its own VoIP service across Canada.

Local residents now have a choice between the services of traditional phone companies such as Sprint Canada and Bell, as well as Vonage and Primus.

Vonage and Primus's services both require subscribers to already have a high-speed Internet connection, which can cost anywhere from about $30 to $50 a month.

On top of that, Vonage's basic package is $19.99 a month. Primus's base service is only $15.95. However, the subscriber must pay about $140 for the hardware that connects a phone or computer to their Internet port. Vonage provides that equipment for free.

Vonage's Canadian rollout also includes the cities of Montreal, Winnipeg, Halifax, Vancouver, Victoria, and Toronto.