In 2004 the terms VoIP, internet phone service and IP phone were
foreign to almost everyone except technology professionals and
geeky computer types. Now most people I talk with are at least
slightly familiar with these terms, as the internet phone
service market is now starting to take off. Contrary to what
many people believe, VoIP is not a new technology. It was
introduced to the public in 1995, by a company called Vocaltec.
By using internet phone software, registered users could make
phone calls via their computer using a dialup internet
connection. I made my first internet phone call in 2000 using
my computer, a headset, a dialup internet connection and a free
account with Net2Phone. The sound quality was terrible, but it
was an absolutely fascinating experience to be making a free
long distance call over my computer. Now in 2005, ten years
after the first commercial use of VoIP, the technology is
finally ready for prime time!
Significant improvements have been made with VoIP in the past
five years, and communications companies have started investing
heavily in the technology. The quality and reliability of
service has improved so much within the past year or so that
VoIP is now suitable and reliable enough for everyday
residential and business use. In fact, so much attention is now
being given to the continued improvement of VoIP technology that
it’s well on it’s way to becoming the PREFERRED method of
communication by home users and businesses alike.
There were around 1.5 million internet phone users in the USA in
2004, and around 2.1 million today according to
Telecommunications Industry News. According to various
statistics I’ve seen, the number of VoIP users in the United
States is projected to be around 17 to 18 million between 2008
and 2010. This in an increase of over 1000% within the next 3
to 5 years! Experts also estimate that by 2007, 75% of long
distance calls worldwide will be made via the internet. The US
is currently not the biggest user of VoIP technology - there
are about 7 million users in Japan out of approximately 12
million worldwide today. The internet phone industry is
booming, and will continue to grow over the next decade. It
seems that everyone including EBay wants in on the exploding
VoIP market now, as evidenced by their purchase of VoIP provider
Skype in September 2005.
More people are showing interest in obtaining Internet Phone
Service because they are starting to hear more about it. This
is due in part to more “converted users” raving about the amount
of money they are saving and the great features they get for
free (I love my Packet8 VoIP service so much I wrote a website
about it!). A greater awareness has also come from increased
advertising efforts by major cable and communications
companies. Many cable television and phone service companies
(like Verizon) have been pouring money into VoIP technology in
order to capture some of this new market share.
In an effort to hold on to their customers, many regular PSTN
(public switched telephone network) phone companies are now
offering “unlimited long distance calling” for a flat monthly
fee of around $39 per month. Current subscribers are starting
to cancel their traditional phone service as they are convinced
that VoIP is a better option.Not only is VoIP cheaper (under
$25 a month for unlimited calling), but most providers throw in
all of the optional features for free. Phone companies charge
extra for services like voicemail, caller id and call waiting.
I think phone companies have missed the boat when it comes to
competing with VoIP, but that’s a topic for another
article……
With all of the telephone service options now available, it is
becoming difficult for consumers to choose the right provider
for their needs:
Should you subscribe with a true VoIP service service provider
(like Vonage, Packet8, SunRocket, Voip.net, etc…), or should
you choose the phone service that your cable company
provides?If you compare VoIP provider rates with those of
the cable company, “pure” VoIP providers are clearly the
winner. Cable companies do provide free installation, but
VoIP is really very simple to install. Many cable companies
offer discount through “package deals”, but it’s always smart to
compare total cost and included features with VoIP providers
before making a decision. For a comparison of major VoIP
providers, visit http://www.saveonphoneservice.c
om.
Should you switch to VoIP and get rid of your landline phone, or
keep what you’ve got and pay for unlimited long distance
calling? If you don’t use the internet, keep your landline
phone and forget about VoIP for now. To get the most bang for
your buck out of VoIP service, you need to have cable internet
service. This eliminates the need for a phone line and “dial
tone” that you have to pay the phone company for. To use VoIP
in the most cost effective way, calls shouldgo through your
cable broadband connection - this eliminates the need for
standard phone service. VoIP does not work well over dial up
internet; you really need broadband in order to get the best
audio quality.
Depending on your long distance calling habits, VoIP internet
phone service can save you between 40% - 80% per year vs.
traditional PSTN phone service. The technology is mature now
and the quality of service is great (and getting better all the
time). It’s hard to beat unlimited local and long distance
calling for less than $25 per month; plus you get free
voicemail, caller id, call waiting, call return, and all the
other features that normally cost extra.
VoIP is definitely here to stay, and cost savings is only one of
the many benefits it offers. Internet phones will change the
way the world communicates. It’s now possible to live in
another country and have a US phone number, you can have several
“virtual” phone numbers in different states or travel the world
and bring your home phone with you. It’s an exciting time in
the world of communications - are you ready to switch to VoIP?
© Copyright 2005, Debbie Jacobsen. All rights reserved.
This article may be used without permission as long as it
remains in original form, including live links.