Abstract: A method and system for providing telephony services over a data network is disclosed. According to one embodiment, a service provider enters a service plan with a user. The service plan ensures the user a fixed cost for a substantial long period regardless how long the telephony service is used by the user. Further the service plan requires no purchase of any equipment nor regulates the use of the services in terms of time or distance. The service plan is incorporated in a gatekeeper that is coupled to the data network and administrates all connections over the data network.