Is a VoIP Right for You?

I first heard about a VoIP (Voice over Internet Protocol) about three years ago. There was only one company that provided "land line" phone service in the area where we were living, and I was complaining to some friends about the high cost. We had a basic phone line with no additional "frills" such as call waiting, caller ID, or voice mail, and we were paying about $35 each month. My neighbors shared the amount of money that they were saving each month by using a VoIP and I decided I needed to find out more. There are a number of factors that should be considered in making an "informed decision" as to whether VoIP service is right for you.

How it Works

In order to utilize a VoIP, you need to have the right equipment. You typically need a broadband Internet connection (essentially, a high speed internet access connection such as DSL or cable); a modem; a phone adapter (different providers typically offer adapters that are specific to their service), and a phone. Using a VoIP is similar to using a regular phone service. All you have to do is pick up the phone to call others (you call anyone who has a phone line) and your phone will ring when a call is calling through. The logistics are a bit different in that the phone adapter converts your voice into data, sends it through your Internet connection, and then converts it back into your phone when the person on the other end picks up the phone.

What are the benefits?

The most commonly discussed benefit is the cost. You get a lot for your money, especially when compared with basic phone service. Most providers offer service plans starting at $14.95 per month. These basic plans usually include 500 minutes per month of talk time anywhere in the US, Canada, and Puerto Rico. They also include features such as voicemail, call waiting, call forwarding, and caller ID. For $21.95 to $24.95 (depending on the provider), you can typically get unlimited talk time each month including calls to several European countries and you also have the option of keeping your existing phone number. Many providers offer the first month of service for free.

Another benefit is the portability of the service. You can typically carry your phone number with you when you change providers. With most providers, you also have the option of adding a secondary number. For example, if you live in Colorado but have a child in college in Virginia, you can add a secondary number with a Virginia area code so your child does not have to pay long distance charges to call you. This is also ideal if you do a lot of business in one area but reside in another area or if you have a significant other that lives in another area. Most providers charge an additional $5 per month for this feature.

In addition to being able to carry over your phone number and add a secondary number, you can also take your service with you when you travel. You need to have your computer and modem as well as your phone adapter, and as long as you have a broadband Internet connection, your phone calls will ring through as if you were in your own home. You can even keep your number if you move.

What are the disadvantages?

One major complication that you can face if you use a VoIP is service outages. You are relying on both a power source and on your Internet connection. If your Internet connection goes down or you have a poor quality connection, you may lose service. If you experience a power outage, you will also lose service. Some VoIP providers will forward your calls to your voice mail if an outage occurs, but others will simply provide a message indicating that your line is not available.

Another area of concern is in emergency (911) dialing. When you have a VoIP, this works a little bit differently in that your number and contact information are not immediately displayed to emergency response providers. If you have registered your phone number and address with your service provider, you will be directed to a general emergency response center for your area. You may need to provide basic information such as your phone number and address before assistance can be provided and if you are disconnected, the emergency response provider may not have the information they need to call you back. This service will not be available at all in the event of a service outage. Check details for specific providers and this varies from one provider to the next.

Security is also a concern because most VoIPs do not currently support encryption. If you work from home, many businesses will require that you use a secured land line instead. Also, if you have a security system, many monitoring services will not work well with a VoIP line. Check with your provider for specific information.

An additional concern is call quality. In some cases, you may experience a delay in response time or static on the line.

Reviews of providers

One thing that I have learned in using different VoIP providers over the past two years is that service can vary based on the area where you live. What works well for your sister in Illinois may not work well for you in California. It is very important to get feedback from people in your area to find out which VoIPs have the best track record where you live.

Lingo

Our first experience with a VoIP was through Lingo. They are less expensive than other providers and came highly recommended. Unfortunately, this service did not work well in our area. We experienced frequent outages due to servers on their end being unavailable. When this occurred, our calls were not forwarded to voice mail and instead people received a message saying that our phone was out of service. In one case, we did not have service for two days due to difficulties with their servers. We were not compensated in any way for this inconvenience.

Reliability was also limited in that calls often did not ring through and there was often a delay in transmitting voice mail messages. The call quality was poor and we would often experience delays in transmission. For example, if we called someone, a few seconds would pass before the person on the other line could hear us. The same thing would happen when answering calls. In addition, we frequently experienced static and dropped calls.

We also were not impressed with our interactions with customer service. They outsource their calls which results in long wait times (at one point when we were experiencing an outage, we were on hold for 30 minutes before we were able to speak with someone) and once you are able to talk with someone, communication can be difficult due to language barriers.

Vonage

If you watch TV, then you have likely seen a Vonage commercial. After talking extensively with people in our area who use VoIPs, Vonage seemed to have the best track record. Vonage has a number of plans to choose from ranging from a "residential basic plan" that is $14.99/month to a small business premium unlimited plan that is $49.99/month.

We noticed an instant difference in call quality (from Lingo) the minute that we plugged in the adapter and picked up the phone. The connection was much clearer. We have never had any problems with outages (other than those related to power outages), dropped calls, delays, or poor connection quality. We also love that we can take care of our account (billing, adding features, etc.) online and that we can view a log of both incoming and outgoing calls each month. We receive e-mail notifications when we receive a voice mail and can listen to our messages through the computer. This enables us to easily access voice mail from work.

When we had Lingo, even though caller ID was an included feature, we found that phone numbers were only displayed if someone who was on the Lingo network was calling us. Since we switched to Vonage, we have found that most numbers (along with names) are displayed for incoming calls.

We have only had one interaction with their customer service department when we called to ask a question about our bill during the first month. They were friendly and quick to address our concerns.

Additional Considerations

Overall, we have been very pleased with our VoIP experience. We love all of the additional features and enjoy being able to keep in touch with friends and family all over the world without having to spend a fortune on phone bills. We do have cell phones that we can use as a "back up" in the event of an outage or emergency.

After weighing the pros and cons, if you have decided that a VoIP is right for you, here are a few additional things that you may want to consider:

What is the track record for service in your area? (talk to neighbors, family, and friends and consult local review websites)

Do they require an annual service contract?

Can you keep your current phone number?

What additional fees may be involved with starting service (installation fees, equipment purchases, shipping, etc.)?

What features are included as standard options? (Do your research and compare features offered by different providers to find the company that will best meet your needs)