Some of my friends use Packet8. It's similar to Vonage. Cheaper by a few dollars.
I've been using Vonage for almost 2 years now and had no complaints. I pay close to $30 a month ($25 + taxes).
I prefer Vonage over Magic Jack simply because of less operational hassle. MJ needs a computer to function which I find very limiting and adds reason to consume unnecessary energy. Vonage simply uses your DSL router and all is set. No need for a computer.
Think of it this way, MJ needs to be connected to an always-on computer to receive incoming calls from abroad. And, if your PC is off, I bet your relatives abroad will be pissed for not getting a line connection.
Why pay $40/yr where you can do webcam chat thru your favorite messenger app FREE. Skype, for one, have the best voice quality on this genre.
My best experience while using Vonage, is that one time, the device malfunctioned so I have to call their service desk. I was relieved to find out that the rep is a Filipino (which is obviously situated in RP). I was told to ship the defective device to an address in NY and they will replace it free. Even the shipping to my home address in CA (from NY) is free. More so, they even reimbursed a portion of my monthly bill for the lost time while I still don't have a functioning unit. Excellent service I should say. My only gripe is that since the Vonage unit is used in RP, they have to send it to me (in the US) and back to RP.
One last note, both Vonage and MJ can't make 911 calls (as if it will matter in the Philippines).