Morpheus used to be the leading P2P client and formerly one of my favorite P2P applications - that is before they were sued by the RIAA, then "revamped" their client and started bundling spyware. In any event, they've cleaned up their act a little and offer a decent P2P client app, that can access multiple P2P networks at once (i.e. Kazaa, eDonkey, iMesh, Overnet, Grokster, Gnutella, LimeWire, etc.). I haven't checked it out yet, as I am still partial to eMule Plus.

In any event, Morpheus has partnered with i2Telecom to launch a new VoIP service.

Here's the news release:
i2Telecom and StreamCast's Morpheus Global VoIP Solution Now Available

Some keypoints:
1) You have to buy Morpheus' VoiceBox for $49.95. oy! Another VoIP gateway box? I hope it's at least standards-based (i.e. SIP or H.323)
2) Their news release says "Unlimited free calling to other Morpheus Voicebox(TM) customers anywhere in the world"
3) If it's "free" Then what's this? "Unlimited Global Community calling plan for $6.95/month." Is it free or is it $6.95/month? Make up your minds!
3) Calls to all U.S. and Canadian telephones cost only 3.9 cents per minute.
4) They offer a "Vonage-like"service by offering "North America Unlimited Plan - additional $18.95/month."

Of course Vonage has both inbound & outbound phone number capabilities, i.e. they give you a real phone number. As far as I can tell te Morpheus/i2Telecom service is outbound only to telephony numbers. The only inbound service is via fellow Morpheus/i2Telecom users. Not very useful if you want grandma to call you!

And I should point out that P2P Kazaa founders Niklas Zennstrom and Kazaa co-creator Janus Friis announced a similar venture with Skype

In fact Skype is fast becoming a very popular VoIP client since:
a) it's free to call fellow Skype users and it doesn't require a hardware box like Morpheus
b) it works through NAT firewalls
c) the voice is encrypted.

Still, the Morpheus news bodes well for the Internet telephony industry.