There are plenty of ways to save money on phone calls these days, to local numbers, mobile phones and internationally.

One way is the now popular Skype service, either using the software on a PC or using a standalone handset.

Alternatively, there's the Stickphone from Tesco, which works similarly to the Vonage V-phone and comes in the form of a USB plug with a small headphone socket on the end so you can attach the supplied headset.

The software required to make and receive calls is supplied on the stick - with a 1GB capacity it offers some extra space to store files.

After plugging the phone into a USB port on the computer you need to run through a short setup procedure to register the phone under your name, choose a number and activate your account using the activation code provided.

It then works like Skype - users can make phone calls through the keypad that pops up on the PC's desktop when the phone is plugged in. There are a number of typical phone features, including voicemail, a contacts list, a call log and independent control of the earpiece and microphone. All of the settings and contacts are stored on the USB device, and one of the biggest advantages of this form of internet calling is that you can carry it around with you and make calls from your account using any Internet-connected computer in the world.

There are a range of call packages available that vary from pay-as-you-go to monthly subscriptions (which offer substantial discounts on calls). We haven’t always been very impressed by the clarity of these devices in the past, when it comes to calls, but the Tesco Stickphone was capable in our tests. Audio was a little muffled but clear enough to understand, and although there was a slight echo from the caller’s end, clarity at both ends was good. Considering the substantial savings on offer, particularly if you have friends or family abroad, we're willing to overlook the minor quality problems.

Vista compatible: Yes