Its monthly dear. Other party has to have a magic jack to make a call but Vonage does not have to be. With magic jack you need to have high speed internet but Vonage does not have to be. Vonage hooks up on your modem and you will never get disconnected. With Magic Jack your computer needs to be on all the time but for Vonage it doesn't have to be. If you need to call anywhere International ( Excluding Nepal) Vonage is the best phone service. I did have Magic Jack but to call Nepal or anywhere International I was charged because the other party did not have Magic Jack.