What is Voice Over IP (VoIP? ?
VoIP is short for Voice over Internet Protocol. It bypasses the traditional PSTN (public switched telephone network) and uses the broadband internet connection- cable or DSL- to route the calls. It has all the features of your phone and then some more. An adapter connects your regular phone to the VoIP service. Primary reason for its popularity is the low cost and portability. Call quality is the most important selection criteria for most customers. Since most VoIP companies use public broadband (provided by cable and phone companies) to route the calls, their call quality ranges from good to very good depending on when the call is made. On the other hand, the cable companies use their private networks to route the traffic and therefore their customers enjoy very good to excellent call quality. This difference in quality is reflected in the prices charged by regular VoIP companies vs. the cable companies.
The nerds can read more about it at howstuffworks.com |
What are the Advantages and Disadvantages of VoIP ?
Advantages include:
* Significant cost savings.
* Generally flat rate unlimited long-distance plans cost between $20 to $40 per month, which is a great deal for most people.
* Ability to have telephone number with a different area code. e.g. Most of your family stays in New York and you stay in California (or for that matter, say, Australia). You select a phone number with New York area code 212. Now your family can call you as if they were calling a local number. And your calls to them are free too since they are included in the price of your monthly plan
* Features like caller ID, call forwarding, call waiting, call logs and visual voicemail are generally included free.
Disadvantages include:
* VoIP services don't work during power outage though some companies like Cox Cable are providing users with VoIP equipment that has backup power.
* If your broadband connection is choked due to internet traffic, the voice quality will drop significantly.
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Calls are not directed to regular 911 call centers. Instead they are directed to PSAP (Public Safety Answering Point) where you have to provide your name, address etc. which can be a problem during emergency. Due to a federal mandate, some VoIP providers have fully integrated their systems with E911. E911 or Enhanced 911 requires the you to provide your details to the VoIP company so that it will automatically pop up when you call PSAP through 911.
* VoIP numbers are not automatically listed in the directory though many VoIP providers are actively working to resolve this problem
* Generally, you cannot use the internal phone wiring and the VoIP adapter supports only one phone. Most users overcome this limitation by using expandable phone sets.
* Some home security systems that use phone line are not compatible with VoIP.
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What are the Average Costs Associated with VoIP ?
Generally VoIP costs include the following unless there is a special offer :
* Activation Fee- About $30
* Equipment Cost- Generally free but maybe upto $30
* Shipping Cost- About $10
* Contract termination Fee- Between $30 and $60. Sometimes no fee as long as equipment is returned within time frame specified in the terms and conditions.
* Monthly Cost- Varies by plan but generally between $20 and $40. Can be lowered by signing for a bundled plan or by pre-paying the annual cost. Customer has to pay separately for international calls under most plans.
* Charges for international calls may or may not be included in the package. If not included, they vary by destination for each provider.
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Which are the Popular VoIP Companies ?
Tier 1 Companies:
ATT CallVantage,
Cable Companies
Tier 2 Companies: Packet8, Vonage, Verizon VoiceWing
Tier 3 Companies: Lingo, VoicePulse, Viatalk, Nuvio, Skype/ Yahoo |