Why Change to VoIP?

What is VoIP?

It may be a funny acronym, but VoIP is changing the way we make phone calls. Short for Voice over Internet Protocol, VoIP transmits sounds over the Internet using Internet Protocol (IP). It replaces traditional phone lines and enables voice communication to be more mobile and less costly. VoIP can be used at home, at work and on the go with VoIP service providers offering many different options. Before choosing a VoIP service and a plan that’s best for you, here’s a guide that provides more information about VoIP technology.

VoIP At A Glance

Instead of using phone lines for data transmission, VoIP uses the Internet. It transmits voice data within milliseconds by compressing data being sent and then decompressing it to be received. In order to use VoIP, you need Internet access with a good broadband connection, a VoIP service provider, a computer, phone, or other device with Internet access, and a phone number. VoIP offers all the same phone and calling features as traditional landline phones, including Caller ID, Call Waiting, Call Forwarding, Call Blocking, Redial, Voicemail, Fax, 411 Directory and 911 Services.

VoIP Uses

Because of VoIP’s global accessibility, it offers residential, business and mobile uses. Here’s a look at each one:

Residential VoIP – A VoIP phone system replaces traditional landline phones and offers a wider calling area for free or a minimal price. There are two options for residential VoIP service: Plug in a phone adapter to your regular phone system and be charged a monthly fee for calls, or download VoIP software and use your computer and a headset to make unlimited free calls to other computer-based VoIP users. Computer-based calls to landline and mobile phones are charged, but the rate is low.

Business VoIP – Whether a small business, a one-person office, or a large company with a network, VoIP provides global internal and external communications and enhanced functionality at lower costs than landline phone systems. VoIP residential services can be used for small businesses, or various business plans are available depending on the size of the company and its calling needs. Besides reducing business costs, VoIP enables employees to work remotely.

Mobile VoIP – If a mobile phone has Internet access, free calls can be made with VoIP services. However, the mobile phone must be compatible with the VoIP service. The software download allows callers to talk for free with others worldwide, as long as they have the same service on their mobile phone or computer.

VoIP Advantages

The greatest advantage of VoIP is its inexpensive rates. Generally, VoIP is free to use with computers and some mobile and landline phones. When used to replace a traditional phone line system entirely, VoIP offers one low monthly rate, eliminating per minute rates for long distance and international calls. According to a study comparing VoIP rates to standard phone line costs, VoIP users save as much as 40 percent on local calls and 90 percent on international calls. Here are other advantages to using VoIP:

  • Ability to make calls anywhere in the world for free or at reduced rates.
  • Unlike a standard phone line where only two people can speak to each other at a time, there’s no limit to how many people can speak in real time in one phone call with VoIP. You can conference in family members or business associates to your phone call.
  • Besides talking, VoIP can be used to send photos, video and text, even during your phone call.

VoIP Challenges

Although VoIP offers many advantages, it is a relatively new technology, so some challenges exist. However, these problems are not without present or future solutions as technology continues to evolve. Here’s a look at the main problems associated with VoIP:

  • Voice Quality. Some VoIP users experience noise, an echo and delays when talking over VoIP. However, these issues are resolved with a good broadband connection, quality hardware and a top-notch VoIP service.
  • Security. As with any Internet application, security concerns are present. However VoIP service providers are taking steps to prevent identity and service theft, call tampering, viruses, phishing and spamming.
  • Bandwidth Dependent. VoIP uses your broadband connection, so when it goes down, you’re without phone service. The same holds true if electric power goes out. This can be a major challenge for homes and businesses without a backup landline or mobile phone.

VoIP’s Popularity

Since its inception in 1995, nearly a million people and hundreds of businesses have switched to VoIP. VoIP usage is expected to grow significantly over the years. Surveys show that cost is the main factor for its popularity, followed closely by portability. With VoIP, calls can be made using an existing phone, a computer, or a mobile phone. For people on the go or who travel a lot, VoIP keeps them in contact with family, friends and business associates without paying high long distance or international rates.

VoIP Service Providers

VoIP Service providers are the portal to getting started with VoIP. Most VoIP service providers are subscription based and geared towards homes and businesses who want to replace their traditional landline phone with VoIP services. Among the top providers in this category are Vonage, AT&T CallVantage, Viop.com, Lingo, Packet 8 and BroadVoice. Other VoIP service providers offer computer to computer and computer to phone service. Among these providers are Skype, Gizmo, iChat, Talkster and iCall.

When deciding on a VoIP service, consider your phone calling habits and needs, and compare them with the costs and features of service providers. Look closely at whether equipment is needed and if it is included in the rate, as well as any added fees for activation or termination.

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