Contents
What Is VoIP?
Types of VoIP Services
Advantages of VoIP
Disadvantages of VoIP
VoIP Requirements
How to Make the Switch to VoIP
VoIP Home Wiring
Advantages of VoIP
VoIP offers consumers three main advantages over traditional phones:
- The opportunity to keep your existing phone number
- Lower costs
- More features
Keep Your Existing Phone Number
Though there are some circumstances in which you can’t transfer your current number, you usually can take your number with you when you switch to VoIP.
Lower Costs
VoIP phone service saves you money in several ways:
- Basic rates are lower: Most providers offer a basic plan that allows unlimited local and long-distance calling for $20–35 a month. Many providers also offer less expensive plans with a limited number of minutes, such as 500 a month.
- International rates are lower: International VoIP calls often cost up to 50% less than international calls on traditional phones. Some VoIP providers even include international calls to select countries as a standard feature in their flat monthly rates.
- Fewer taxes and surcharges: Not only are VoIP plans cheaper than those of their landline competitors, but the federal government taxes VoIP service favorably (for now), so you won’t get hammered by all those little surcharges.
In all, recent studies have shown that the average consumer who switches to VoIP saves $20–50 a month.
VoIP Features
VoIP service plans typically have a vast number of features, most of which are free of charge.
Free Features of VoIP
The free features that most VoIP providers offer far surpass what’s available on traditional phones. Though features vary by calling plan and provider, the most commonly
offered include:
- Voicemail: This includes all the standard features, plus a few more. For instance, most VoIP services notify you by email when you have a voicemail.
- Caller ID: This feature displays the caller’s phone number (and, from some providers, name). You can also block outgoing caller ID, so your name and number don’t appear when you call other people.
- Call waiting: This alerts you when someone is calling while you’re already on the line with another call.
- Call forwarding: This allows you to redirect incoming calls to other phone lines. For instance, if you’re on a business trip, you can forward all calls to your cell phone to make sure you don’t miss any.
- Three-way calling: This lets you to set up a call in which three parties can talk to one another at once.
- “Home phone” portability: This feature essentially lets you bring your “home phone” anywhere as long as you carry your ATA or IP phone. If you have an ATA, plug it into a live broadband internet connection, and plug a phone into the ATA. Then make calls using your own number. With an IP phone, just plug the phone into the internet connection, and you’re ready to go.
- Area code choice: This lets you choose any area code for your phone, regardless of where you live, when you sign up for VoIP service. So if you’re living in Miami but your family is in Chicago, you can get a Chicago area code. This makes your family’s calls to you local.
- Call transfer: This feature lets you redirect a call that you’ve answered to another number.
- Call return: Also known as “*69,” this allows you to call back the number that called you last.
- Repeat dialing: This allows you to call a busy number repeatedly. When the number is no longer busy, your own phone will ring. Once you pick it up, you’ll be connected to the other line.
- Call hunt: Also called “Find Me,” this lets you set a series of numbers to ring in sequence whenever you get a call. For instance, you can set your home phone to ring first, then your cell, then your business phone, and so on. This way, you get the call no matter what.
- Send calls: This feature sends all calls straight to voicemail without making your phone ring.
- Anonymous call blocking: When calls come in from people who have blocked their caller ID, this feature sends the calls straight to voicemail.
Fee-Based VoIP Features
In addition to free features, most VoIP services provide a number of additional services for a fee:
- Additional lines or fax numbers: This feature lets you add additional lines or dedicated fax lines once you’ve set up an account with a service provider. Approximate cost is $10–25 a month plus activation fee.
- Virtual phone numbers: This feature lets you establish a virtual number with the other party’s area code, so if you and a friend or family member live in different places, they don’t have to pay a long distance fee to call you. Approximate cost is $5–10 a month.
- Softphone: This feature includes additional software that allows any computer you own to operate as an additional phone through an on-screen interface. Softphones are particularly useful to regular travelers, since they allow these users to bring their “phones” with them just by carrying along their laptops. Approximate cost is $5 a month plus activation fee.
- Toll-free numbers: This feature lets you establish a toll-free number that rings to your primary phone. Approximate cost is $5 a month.
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