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Several years ago, or many generations of Internet time, people saw the worldwide web transform the way people communicate. While E-mail saved millions in productivity by sending messages and files instantly over the net, the dot-com bust deflated expectations and temporarily put the brakes on such widespread advances. Finally the next big thing in Internet communication is gaining traction, and there is genuine, revolutionary potential on the horizon.
Voice over Internet Protocol, or VoIP for short, is a technology that uses your existing Internet connection to make local and long-distance phone calls at a fraction of the cost of traditional phone carriers. Most VoIP providers offer plans in the area of $20 - $50 a month for unlimited calling anywhere in the US and Canada, and pennies per minute for calls to Europe and elsewhere. The only thing you need to make VoIP calls is a broadband Internet connection, not a new phone, expensive hardware, or even a computer. When you sign up for VoIP services, the company will mail an adapter that you plug into your cable or DSL modem. Plug your phone or fax machine into the adapter, lift the receiver, and you have a dial tone.
But before you rush to drop your old phone line remember that any new technology has its share of pros and cons.
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Should your broadband connection go down you will lose your phones as well, but callers will still be able to leave messages for you. There’s no way around this unless you have a backup Internet connection in place.
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If you lose power at your location you will also lose your phone connection. This can be solved with uninterruptible backup power supplies by vendors such as APC, Tripplite, or CyberPower.
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911 emergency service is tricky. Since Internet phones aren’t tied to a physical location emergency operators can’t trace where you are calling from. It is up to the caller to give their address or location during the call, which is not always an easy thing to do in an emergency. Starting November 28, 2005, however, all VoIP carriers will be required to offer “E911” service which is comparable to current 911 calls over your phone line. This should alleviate the problem of operators knowing where you are calling from, but you should confirm with VoIP providers if your area is covered by the E911 service before signing up.
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The quality of calls can suffer during times of high Internet traffic, usually weekend nights. Similarly, if your Internet connection is heavily used for transferring files you will likely notice “clipping”: short clicks, skips, and breaks in the phone conversation. These problems are working themselves out as technology and Internet speed improves.
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PROS
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Cost. Providers offer unlimited calling plans covering the US and Canada starting at $25 per month. Costs are likely to drop further as more retailers enter the market. International calls are a fraction of traditional phone service plans.
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If you use a VoIP line for personal calling you can take it on the road. Simply plug the VoIP adapter into any broadband connection (hotel, conference center, etc) and you can make and receive phone calls using your own account.
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Most VoIP carriers provide access to a web interface to help manage your phone account. You can configure billing options, view call logs, listen to voicemail online, and more.
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Advanced “find me” options allow you to ring multiple phones simultaneously (like your cell phone and your VoIP line), or set up a sequence to ring first at your office, then your cell phone, and last at your home phone before going to voicemail. The additional numbers don’t even have to be VoIP lines.
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Small business packages offer multiple extensions (even if staff members are not located in the same office), dedicated fax lines, and advanced voicemail features. |
Sound interesting? Well it should. Anyone following the industry will tell you that VoIP is the future of telephony. The main question now is who will emerge as the industry leader. Three players top the list right now: Vonage, Packet 8, and CallVantage by AT&T. All three offer competitive rates and feature-rich packages. To win over cautious consumers many VoIP providers also offer free trial periods to test the reliability and performance of their service.
VoIP, as the industry stands right now, is probably not for everyone. The best approach is the same for any new technology; test the water before diving in headfirst. If you run a small office, consider purchasing a trial package of one or two lines to test call quality during the busiest part of your business day. Only if the service is satisfactory should you consider implementing it throughout your business. Also, the people who stand to save the most money are those making long distance and international calls. Review your phone bill at the end of the month to see what percentage is local vs. long distance. If you fall into the right category you could greatly benefit from VoIP service today. Of course, whether you get it now or 10 years from now, we will eventually make all of our calls via the Internet whether we realize it or not.
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