Skype vs. Vonage: VoIP services explained!

Many of you have probably already heard about VoIP, or voice over IP. This is a technology that allows you to make telephone calls using the internet. With VoIP you can save money on your monthly bill, get inexpensive or even free long distance, plus get loads of extra services without any additional cost. Unless you have lots of time to explore the more than 1100 VoIP providers that exists today,...

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....VoIP Phone Advantages & Drawbacks....

Michael Lemm

VoIP phone service providers offer many advantages to the residential and small office/home office user. If you have a high speed internet connection then choosing a VoIP phone service might be right for you.

But before you run out & buy the 1st thing you see....arm yourself with a little education 1st. The benefits must make sense to you or you are just following the crowd.

Lower Monthly Fees

The price of a VoIP phone line is a fraction of the cost of a traditional telephone line, the long distance calls are much less expensive if they are made via a VoIP provider, and applicable taxes are far lower with VoIP phone service than with a traditional phone service. Some VoIP phone service providers offer a phone line for around $9 U.S. dollars per month and will charge you for calls you make at the rate of 1-3 cents per minute depending on the provider. Most VoIP phone providers offer a bundled service offering unlimited incoming calls and unlimited long distance calls to anyone in the U.S. or Canada for one small fee. VoIP unlimited calling plans currently start at $19.95 per month. As with the traditional long distance market trend...expect even this low cost to drop over time as technology and competition matures.

Lower Taxes

So far to date governments have taken a hands off approach when it comes to VoIP phone service providers. Since the calls are being carried over the Internet, governments have not heavily taxed VoIP phone services. Right now the only tax you can expect to see on your VoIP phone service provider's bill is a Federal Excise Tax, which is only 3% of the cost of the service. For example, if you were to choose a $19.95 unlimited calling plan, the Federal Excise tax would be 3% of $19.95, or 60 cents. Your total bill would be $20.55. Compare that to your local telephone bill (go ahead and take a close look) and you will see you are spending quite a bit on taxes each month. Therefore, choosing a VoIP provider could add up to significant savings for you and your family.

Included Features

Most VoIP phone service providers offer features that are included, while most traditional phone companies charge an extra $20 to $30 per month for these. Most VoIP phone providers include the following features in their low monthly fee: Free voicemail, call forwarding, caller ID, call waiting, call waiting ID, 3 way calling, speed dialing and much more.

Flexibility

When you choose a VoIP phone service provider, you will be sent a converter to allow a regular phone to use the VoIP phone service. Your phone number is programmed into the converter. This means that you can take your phone converter and phone number and use them wherever you travel in the world, just as long as you have access to a high-speed Internet connection. Because your telephone number is based in your converter (and not your home/office), you have the option of choosing any area code for your phone number. Some carriers will allow you to have more than 1 phone number in different area codes for a small additional fee (called a virtual phone number). For example, you can have one number in your local area code and another phone number with an area code from another city. By having a virtual phone number in another city where you have a lot of friends and family, you will be saving them money because they can call you on a local number instead of paying for long distance charges to contact you. Both phone numbers will ring your VoIP phone wherever you have your converter and regular phone hooked up to a high speed internet connection.

Draw Backs

Connectivity issues with 911 service is still a concern with some providers. Although much progress is being made rapidly in this area across the board......it's best to find a provider already enabling E911 service.

Despite what urban legends you may "hear" about using a VoIP phone with dial-up internet access....this is still a myth. If you want a quality credible VoIP experience you will need to have high speed internet access (DSL, cable, or satellite).

Your VoIP phone is portable & can be taken with you anywhere in the world. However, it's not quite as unassuming & convenient as many of the newer small cell phones. But then.....cell phone calls home from Europe would be a lot more expensive too.

Hopefully the above info gives you a little knowledge to go on if you are considering a VoIP phone. Just remember to shop & compare and you'll do fine.

About the author:
Michael is the owner of FreedomFire Communications http://ld.net/mscprez and http://DS3-Bandwidth.com .......delivering choices to both residential and business consumers for voice and data broadband services. Michael also authors BroadBand Nation http://BroadBand-Nation.blogspot.com where you're always welcome to to drop in and catch up on the latest BroadBand news, tips, and ramblings for the masses.


VoIP

What is VoIP? VoIP, or Voice-Over-Internet Protocol, is literally a phone call placed via an internet connection. VoIP has been a long time coming and early internet phone calls were not that reliable and a bit garbled. But they were free. Over the last decade, VoIP has increasingly made its way into business and is now making its way into more and more homes, as people find better, more affordable ways to communicate with convenience. An internet protocol is a way in which data is handled over networks. It is typically a standard method for passing data from one point to another point via...

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The latest information and news on VoIP:

Google
VoIP is hurting BTC (The Nassau Guardian)
A new report is again indicating that The Bahamas Telecommunications Company (BTC) is being devalued due to illegal competition from long distance companies offering Voice over Internet Protocol (VoIP).
Polycom launches SoundPoint IP 430 VoIP phone (CIOL)
NEW DELHI:Polycom, Inc., provider of unified collaborative communications solutions, has added the SoundPoint IP 430 phone to its SIP based voice over Internet Protocol (VOIP) desktop phones portfolio. The newly launched phone is a two-line phone with a full-duplex speakerphone and graphical LCD.
Samsung SGH-P200 GSM/VOIP Hybrid Phone Sighted at FCC (AnandTech)
Cellular and VOIP services all in one handheld...
Consumers to flock to VoIP (theRegister via Yahoo! UK & Ireland News)
The traditional home phone number could become a thing of the past as more and more people opt for fixed-mobile services and VoIP. That's according to ...
VoIP Will Kill Off Traditional Landlines In Europe: Report (Small Biz Pipeline)
VoIP will kill off the use of traditional landlines in Europe, due to the appeal of new fixed-mobile telephone services, says two new reports by JupiterResearch.
X-Lite SIP VoIP Softphone Download (DesignTechnica)
Today's daily download is X-Lite SIP VoIP Softphone. Users who subscribe to a VoIP or Broadband service will be able to use this description.
Ennovative Commerce Solutions Installs VoIP from TelCove (CommsDesign)
JACKSONVILLE, Fla., June 9 /PRNewswire/ -- Ennovative Commerce Solutions, a Jacksonville-based developer of enterprise-class marketing and sales solutions, has installed a new, company-wide VoIP solution from TelCove, a leading provider of business critical telecommunications services to enterprise customers and carriers.
Consumers to flock to VoIP (The Register)
All change The traditional home phone number could become a thing of the past as more and more people opt for fixed-mobile services and VoIP.?
Tiscali unveils VoIP service (The Register)
VoIPtastic Tiscali - which recently clocked up one million broadband lines in the UK - has unveiled details of a new VoIP service.?
Fusion Softphone Turns Computer into VoIP Telephone (IT Observer)
Fusion Telecommunications International has announced that it has completed the first version of its proprietary computer-based efonica telephone, or 'softphone,' a software application that transforms a personal computer into a VoIP telephone. Concurrent with the launch of Fusion?s new, efonica-branded VoIP services later this month, customers will be able to download a beta version of the

Voice Over Internet Protocol

With VOIP technology, you can now place a phone call to someone on the other side of the world using your broadband internet connection rather than a telephone. VOIP technology, in essence, takes the analog signals from your voice and converts them into digital signals able to travel over the internet. Then, at the other end, VOIP converts the digital signal back to the spoken word. Types of VOIP service vary. Some VOIP providers only allow you to call other users of the same VOIP provider; other VOIP providers allow you to call anyone with a telephone. To break it down, there are three basic...

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