How An Internet Phone Can Lower Your Bills

WHAT IS AN INTERNET PHONE / VOIP?

You may have heard of the expression VOIP and wondered what it means. Is stands for Voice Over Internet Protocol, which simply put is speaking over the internet. While this was one of the early holy grails of the internet, the initial systems were cumbersome at best, and images of people shouting over the microphones louder and louder, "Can you here me?" are reminiscent of making international phone calls decades ago.

Today the situation is different. There are many excellent and inexpensive options, some direct PC to PC and other more convenient ones that use with your standard telephone – whether cordless or wireless. What all VoIP solutions have in common is that they take your voice and convert it into data packets that are then routed over the Net just like e-mail.

PC-to-PC Internet Phone
Click here to get your unique SkypeIn number

PC to PC Internet phones are completely free. Brands such as Skype and FreeWorld Dialup bypass the telephone system completely, allowing you to make free calls to other users within their own networks – sort of like the high tech version of two kids in different rooms speaking into cups connected by a string. The sound quality is quite good, but unless all of your family and friends are on this network, it is not a replacement for your standard phone. But it can be great for free international calls to that relative or friend who is overseas. Keep an eye out, however, for merged technologies, such as Skype’s Skypeout service, that let you call mobile and standard telephones for a metered fee.

Click here to get your unique SkypeIn number

Internet Phone Service
This is the most flexible of the bunch, which allows you to use your standard phone and call anyone, usually for a flat fee. This is the system I have installed at both my home and office. There are several companies that offer this service. Vonage.com is the biggest company, but there are many more including as many of your DSL and Cable companies. It pays to compare, especially if you get a deep discount or a package as a current customer.

I have Vonage both at home and at the office. For $24.99 a month, you get unlimited local and long distance and can keep your phone number. They just added free calls to some European countries as well. And for small businesses, for $49.99 a month you get a second fax line included as well. For any of these companies, if you compare the home unlimited plan to an unlimited plan from your local phone company and a long distance plan, you will probably save $50-$75/month. If you are a business, you will save hundreds, plus you save the astronomical installation fees that have been standard for business lines. Vonage, and possibly others have also just launched a virtual number, where you can give friends or family a “local” number for them to call you, so they don’t get hit with high long distance bills.

Concerns

There are two issues one should be aware of with Internet phones. The standard 911 service does not work, but the VoIP carriers have created alternatives which work fine. Just know that if you move your phone, you have to notify the VoIP carrier that you have moved. The second concern is installation. While it is easier than setting up a wireless network, it is still more challenging than just plugging a phone line in, and if you have DSL, there is an extra step that is needed. It took us about ½ hour to get it set up. With our most recent Vonage setup, they at least took the cue from Apple, our longtime favorite for giving easy directions, with an easy, "Do this first, do this second," etc…

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The Bottom Line

For the same, or better phone quality connection, radically cheaper prices, and unlimited calls, there’s no real reason not to explore the potential of an internet phone. Check it out and compare your DSL or Cable company with Vonage and others, and start saving. It could save you $600-$1000 /year.