Is VOIP Calling Right for Your Home

If you’ve been reading newspapers and magazines or watching TV, chances are you’ve heard about VOIP calling. What is VOIP calling, why is it such a big deal, will it save you money on my phone bill, and what do you need to make it work.

Let’s go over the basics first, VOIP is an acronym for Voice Over Internet Protocol. The quick explanation is a VOIP system takes your voice converts it into a digital signal, and sends it over the internet. Your voice is then decoded back into a voice signal and comes out of the phone on the other end. The reason this is such a big deal and will revolutionize the telecommunications industry is pricing structures are going to change dramatically. The distance your voice has to travel, no longer plays a role in its price. Your phone costs will now consist primarily of usage, equipment, and maintenance.

Should you switch to VOIP? You need to look at your situation and decide if it makes sense for you. Does your average monthly phone bill have $20 or more in long distance charges, if so you may be able to save money with a VOIP calling plan. Do you have a dependable DSL, cable or other broadband internet connection? If your internet signal is unreliable this will affect your ability to make and receive calls. If you do have a dependable internet connection then you will be able to use VOIP. Some companies install a central box in your house allowing you use your existing phones and phone lines, Other companies require new lines be run and new phones equipment to be used, exact installations will vary by location and from provider to provider. Find out who pays installation and new equipment fees and factor them into your decision before you sign any contracts.

VOIP plans will vary in price depending on features, and calling minutes. In 2006 basic plans with 200 minutes and calls limited to the United States can be found for $10 to $15 a month. The more minutes you want to use the more expensive your plan will be, if you want unlimited calling prices start around $30 per month. VOIP service providers usually give discounts for longer term contracts, just be sure you are aware of any early termination fees.

The last two features you should be aware of are number portability and 911 services. Emergency or 911 service varies tremendously from one provider to another. Most providers don’t interface well with 911 services. When you use a traditional phone to call 911 the operator has immediate access to your address, with a VOIP plan, you have to communicate your address to operator before they can dispatch any emergency services. Most telephone companies and VOIP providers allow you to transfer your existing telephone number to your VOIP plan. Usually it takes a few days for the transfer to occur, however it can take longer. Many VOIP providers don’t have provisions to allow you to transfer your number back out. This may present a problem if you want to switch providers or go back to a standard telephone service. While VOIP may not be for everyone, for many it can offer significant savings with a loss of quality or service, so be sure to do your homework, know the upsides and downsides before you switch to a VOIP calling plan for your home.

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