This means that people subscribing to the $24.99 per month Premium Unlimited Plan and the $49.99 per month Small Business Unlimited Plan will be able to call people in these European countries and talk as long as they like for a flat monthly rate, just like they do when they call people within the U.S. Previously, subscribers were billed per minute to locations within these countries.

Vonage, which uses a broadband connection and the Internet rather than the regular telephone network to carry calls, has gained popularity among consumers and small businesses as a low-cost alternative to traditional phone service. The company, which recently filed for an initial public offering, is fighting perceptions that voice over Internet Protocol provider Skype's international presence could limit its growth.

Traditional phone companies, such as AT&T and Verizon Communications, have been offering their own local and long-distance flat-rate calling plans for the past couple of years. For example, Verizon Communications charges $40 a month for its unlimited plan, which includes calls within the continental U.S. and Puerto Rico.

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