For a few years now, Skype has been our first choice for making free and cheap phone and video calls over the internet. Few rival services can compete with Skype's popularity and deals, but there's now a new kid on the block that's looking to challenge that supremacy.

Where Skype traditionally focuses on free and cheap calls, with video calls as a bit of an after-thought, ooVoo has set itself up as a video-calling service from the off. If you've got a webcam with a microphone or separate headset, you're good to go. Chatting one- to-one with other ooVoo users is free, as is sending a one-minute video message (either to an ooVoo account or to an email address), and you can install a video chatroom on your blog. It also does voice-only and instant-messenger-style text-based messaging, should you be having a bad-hair day. Most impressive is that ooVoo also offers a web client, so you can chat to other webcam owners without them needing to have the software installed - just send them a link.

The software works very well but its performance will depend on your internet connection and the distance between you and whoever you're calling. Most broadband users will be happy with the results although those with high-end webcams and broadband connections may gripe at the lack of higher-quality video resolutions in the free version - top-quality 640 x 480-pixel calls are one of the paid-for extras.

The software is straightforward enough to use but the interface is busier than Skype's and there's quite a lot going on. However, one of the big stumbling blocks to video chatting with Skype is that, in order for it to work, you have to persuade the recipient of your call to install the software. With ooVoo, they don't need to.

Because ooVoo's basic services are free, this is great value if you just want a simple way to connect to people with your webcam. The premium services start to get pricey quite quickly though - high-quality video costs 10 cents (about 6p) per minute, in which case, you may be best off with Skype. OoVoo offers cheaper calls to the US than Skype, but Skype is cheaper around Europe, so work out which system works best for you. Premium options can be paid for as you go or with a subscription.

If video calling is your thing, ooVoo has some great options not offered by rival Skype. While your friends may be more likely to use Skype, you can use ooVoo to speak to people who don’t use or want to download a video-calling system. If you want top video quality at the lowest price, however, you’re still better off with Skype.