The current study used fMRI to explore the extent to which neural activation patterns in the processing of speech are driven by the quality of a speech sound as a member of its phonetic category, that is, its category typicality, or by the competition inherent in resolving the category membership of stimuli which are similar to other possible speech sounds. Subjects performed a phonetic categorization task on synthetic stimuli ranging along a voice-onset time continuum from [da] to [ta]. The stimulus set included sounds at the extreme ends of the voicing continuum which were poor phonetic category exemplars, but which were minimally competitive, stimuli near the phonetic category boundary, which were both poor exemplars of their phonetic category and maximally competitive, and stimuli in the middle of the range which were good exemplars of their phonetic category. Results revealed greater activation in bilateral inferior frontal areas for stimuli with the greatest degree of competition, consistent with the view that these areas are involved in selection between competing alternatives. In contrast, greater activation was observed in bilateral superior temporal gyri for the least prototypical phonetic category exemplars, irrespective of competition, consistent with the view that these areas process the acoustic-phonetic details of speech to resolve a token's category membership. Taken together, these results implicate separable neural regions in two different aspects of phonetic categorization.