Though not a new technology, VOIP, or Voice Over Internet Protocol, has recently begun gaining ground on the traditional long distance telephone industry. Simply put, VOIP is the ability for a person to talk on the telephone over an Internet connection. Using a variety of types of equipment to switch analog sound bits into digital data packets, VOIP has made placing long distance phone calls more efficient, more convenient, and much less expensive. Because there is no phone company or long distance provider involved, there are no monthly fees, long distance toll charges, or other charges associated with a traditional telephone bill. There are many VOIP service providers out there, and more cropping up on a regular basis. That means there is a demand for these providers to offer even lower cost services than they already do. In an effort to increase customers, some providers are now offering what they call "free" VOIP services. It is important to be aware that this type of service is not truly free.
A primary problem with so-called free VOIP services is the limitations that are often placed on the service subscriber. Many "free" providers limit the people you can call to only just users of the service you are yourself subscribing to. Sometimes you can call members of other "free" VOIP services. Because the commercial VOIP service providers, such as Vonage, connect to a traditional phone network, paying subscribers can call anyone with a telephone, whether it is connected to the Internet or not. As a subscriber to a "free" service, you can't place calls into the public telephone network, and those on a public network can't call you. This restriction negates the potential convenience that VOIP offers.
There are some "free" VOIP service providers that now offer customers the opportunity to call anyone, whether members of the service or not. This, of course, comes at a price. Service providers can offer this possibility to their customers at arguably lower rates than conventional long-distance providers, both domestically and Internationally, covering most of the globe. Though this is still cheaper (and probably a lot more convenient) than traditional long distance phone service, it is not free, and should not be advertised as such.
Subscribing to any of the free VOIP services are not truly free of cost. Chances are if you are interested in VOIP, you already have a home computer equipped with a soundcard and speakers. But if you want to subscribe to a VOIP service, you are required to have a broadband Internet connection, as dial-up just won't cut it anymore. Though prices for broadband Internet have come down, it is still a little more costly than dial-up, averaging $30-$40 per month. In addition, you will probably have to invest in a microphone that is specially equipped with an analog-to-digital converter and a USB connector. This will allow you to talk through your home computer when you place calls. Or, you can purchase an IP phone or headset that plugs directly into your home computer. This allows you to talk into a handset or headset, and have a dialing mechanism, much like a traditional telephone. Many IP phones come with a number of added features. Though these are one-time start-up purchases, it is important to note that service providers claiming to offer totally free VOIP services can't really fulfill their claims.
VOIP isn't too good to be true. It has the potential to forever alter the course of telephone communications. It is flexible (you can travel with your phone and phone number around the world), it is more than reasonably priced for the services you receive (services often include Call Waiting and Caller ID as part of standard service - features you pay extra monthly charges for with a traditional phone company), and it is convenient (you can check your voice mail from your email account, the voice reception is often clearer, and you don't get dropped calls like you do with a mobile phone). But, as with many other products and services, you get what you pay for. So, beware of "free" VOIP services. They are not always free, and if they are, they are most likely very limited in what they can offer their customers.
Free Voip Service Providers
The first category is very similar to that of wireless phone providers, with a monthly fee based on the amount of usage. The second category is similar to prepaid wireless providers, with credits or minutes of calling time purchased in advanced.
This article will briefly discuss how these billing systems work, and also discuss how billing is handled for optional features such as videophone capability and fax lines. For the purposes of this article, we will refer to the two categories as monthly and prepaid.
One important aspect of VOIP billing is the calling area covered by the plan or prepaid minutes purchased. All of the major providers have plans that allow calling to anywhere in the US or Canada. Most of the providers now offer the ability to choose an area code in another country, with that country then becoming the basic calling area.
Calls outside the plan calling area will be billed at set rates for different countries. All of the providers post lists of available countries on their websites with the per-minute cost listed for each country.
Most of the major providers that offer a complete VOIP solution conduct their billing using the monthly method. Vonage and Sun Rocket are examples of providers that use this type of billing. These providers offer a range of monthly plans.
Usually the lower cost plans have a limited number of calling minutes per month, while the costlier plans will include unlimited calling. Most providers offer features such as call ID capability, voice mail, call waiting and call forwarding even in their most basic plans.
This is one area where internet telephones have a major cost advantage over the traditional phone carriers that charge a premium for these services.
Pricing for basic plans with 500 minutes of calling time from most providers is in the range of $15 per month. Plans with unlimited calling fall in the range of $20 to $25 per month.
VOIP providers, like traditional carriers, make a distinction between personal and business accounts. Business accounts are charged a higher rate based on the assumption that business usage will be higher than personal usage.
The rich feature set of internet telephones allows providers to offer many advanced, optional services at a much lower rate than the traditional carriers. Most of the major providers furnish their customers a free PC softphone as part of their basic package. A second line with choice of area code (virtual phone number) is available from most providers for approximately $5 per month.
Dedicated fax lines can be added for $5-$10 per month, usually with a limited number of minutes per month. A 1-800 number with 100 inbound minutes is available from most providers for approximately $5 per month.
Most VOIP providers do not require a contract, but may offer a low-rate for a period of 1 or 2 years with a relatively low ($20-$30) early cancellation fee. Most VOIP billing plans are also offered on a 30-day free trial with no penalty for cancellation within the 30-day period. Also, most providers charge a setup fee, ranging from $20-$40.
The second category of providers, those that offer prepaid calling time, fall in the general range of .03 to .05 per minute for calls made to locations inside the plan calling area. These minutes can be purchased in quantity on a prepaid basis, with the per minute rate decreasing as the number of minutes purchased increases.
This type of provider will usually offer a free PC softphone as a lead-in to paid services. Usually, with this type of provider, PC to PC calling is free, with the per minute cost coming in to play for calls to and from landline and mobile users. Skype and Firefly are two examples of this type of provider.
Both Mark Woodcock & Chuck Parrish are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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