VoIP stands for Voice over Internet Protocol. Simply stated it is a means for routing voice conversations over the Internet or Internet Provider network. Disregarding the commercial applications for business users, I will focus on what VoIP can do for the average consumer.
VoIP takes standard analog audio signals (your voice) and turns them into digital data that can be transmitted over the Internet. This means you are bypassing your local phone company and all of their charges, giving you free phone calls. Assuming that you already have a high speed Internet connection there are several ways to place calls.
These are examples of how to hook up a single phone using VoIP. Hooking up several phones or wiring an entire house gets more complex and will be covered later.
1. Your computer to another computer is the simplest form of VoIP. Software is free or inexpensive and all you need is a microphone, speakers, sound card and your cable or DSL modem. There is no charge for any calls regardless of the distance of the call.
2. Internet Provider phones look like normal phones except that instead of the standard RJ-11 type cord that you would plug into your existing phone connection, they have a RJ-45 connector that goes into your cable or DSL router, and have all of the software and hardware needed built right into the phone.
3. ATA's or analog telephone adaptors are analog digital converters and are usually provided free from providers like Vonage, whose lowest monthly rate is $14.99 per month. You simply take your router and plug it into the ATA and plug your phone into the ATA.
Advantages to using VoIP are obvious if you talk a lot on the phone, especially if you make a lot of long distance calls. Most of the service providers do not charge for any call placed within the US or Canada. So if you are calling Aunt Ruth at the tune of $40 per month, you will now call her for free. Billing for international calls vary by the vendor, SunRocket provides up to 100 minutes per month free on certain plans.
You will keep your existing phone number, but dump your phone company. Phone rates are based on the population using phone service. So if you live in downtown Chicago where there are a lot of phones your rates could be around $20 for basic service. That same service could cost you $45 if you live in a sparsely populated area. Adding on options like call waiting and call forwarding could make your basic bill around $75 per month. By switching to a company like Packet8 who charges about $20 per month for their service, you could end up saving $25 per month or more depending on your calling habits.
Another advantage of VoIP is portability. If you travel with your computer and have a high speed connection at a remote office, hotel or WiFi hot spot, you simply plug a portable IP phone into your computer and start making calls. If you already have a high speed phone card you do not have to rely on any of those to make calls.
Disadvantages to using VoIP vary depending upon your knowledge about computers, software, routers, wireless routers, home phone wiring and home computer wiring. For instance if you live in an apartment and have only one phone which happens to be on the desk with your computer and your router, setup should take five to ten minutes. If you live in a three story home with ten extension phones and four computer terminals, you better be adept at running wire or working with wireless routers and software.
If your cable or DSL provider is not the best at keeping your service up and running you will be without a phone whenever your internet connection is down. If you have a cell phone you can live with this for a short time, but if every service disruption takes hours or days to repair, you might want to rethink switching.
In review if you are not technically savvy, you can always hire someone who is and save $300 to thousands a year on your phone bill. It might be time to consider making the switch.
