TotalTalk, which was designed to replace an existing phone service, had drawn just 2,000 subscribers since it debuted last October. It seems the service didn’t stand a chance next to market leader Vonage Holdings Corp, which has about 1.8 million subscribers.

AOL, which is owned by Time Warner Inc, likely will continue to push its AIM Phoneline service, which is part of AOL’s AIM instant messenger. AIM Phoneline handles both PC-to-PC VoIP calling, as well as calls between traditional phones and PCs, and was not designed to be used as a primary phone line.