Posts Tagged ‘Real Money’

VOIP Telephony – The Benefits and Limitations

January 25th, 2010



Previously we explored the history and technology that gave
rise to VOIP Telephone service (*see footnotes). Today we will examine
some of the benefits and also the drawbacks of this new opportunity.

In previous articles we discovered that traditional “Landline” type
phone service is set up much like a “Toll Highway”. Billing starts
when the “Circuit” is opened, and continues until it is closed.
Just like travelling down a Tollway, the longer you stay on, and the
farther you travel, the more “Toll Booths” you pass through. These
toll booths are the phone company’s switches, and you get charged
for every one that you pass through.

In contrast, VOIP phones use “Packet” switching. As the broadband
Internet connection is always open, digitized voice signals are
sent to the receiver in discrete packets. The result is that no
“dead air” exists on the line, as no traffic is sent when there is
a lull or pause in the conversation. This allows several two-way
conversations to use the same “bandwidth”, or space that previously
was tied up by ONE call.

This has resulted in great economy for VOIP providers who in turn
pass along the savings to the end user. Most top VOIP plans run
around 30 dollars a month, and the best include International calls
to many countries worldwide within that base fee along with a host
of features like Voice Mail, Caller ID, Call Waiting, Three-way
Calling, Online Access, Etc.

While most major traditional carriers have an “all inclusive” plan,
none that I know of include International calling, and most of their
“basic” plans are double the cost of VOIP. In my experience, the most
coveted features are also charged extra for. Add in the taxes and fees,
and all of a sudden you’re talking REAL money!

The other great benefit of VOIP is the ability to take your device
anywhere and make calls just like you were at home. The best services
are fully find-me, follow-me capable. This means that wherever you
happen to be, your phone number will find you and ring at THAT location.
I use mine with a Laptop, a cheap cigarette lighter a/c converter,
a wireless card, and an old “princess” phone in my truck parked outside
of hotspots all the time. That’s huge. You can have your office in
whatever hotel or airport or Starbucks you happen to be in at the moment.

Having covered most of the benefits of VOIP, let’s examine some of
the drawbacks. The major one is spotty 911 service availability. As
the device is portable, any call to 911 will result in emergency
crews being sent to the device’s address of record, which is set up
when you activate the VOIP device and service. Obviously this doesn’t
do you much good if you are in a hotel in Montana but live in Ohio.

One way around this is to change your address with your provider when
you travel, and then change it back when you return home. Of course,
this only works with domestic addresses, and you must remember to do it.

A better way is to ignore the issue entirely, and keep a very basic,
cheap, no frills service plan with your local phone provider. This will
still be cheaper by far than a full blown plan. Also, you avoid the other
main issue with VOIP- Power Outages. If power goes out, or you lose your
Internet Connection, you lose your phone service. Of course, you run
that risk with today’s cordless phones too, so it’s always a good idea
to have an old hardwired phone around the house, or at least a cell
phone available.

By: Glenn Grundberg