FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

ftc.gov FEDERAL TRADE COMMISSION

V O I C E over internet protocol

VoIP:

It’s A Phone, 

It’s a Computer,

It’s ...

V oice over Internet Protocol — VoIP — is one way people are making and receiving telephone calls using a broadband Internet connection rather 

than a regular phone line. VoIP converts your phone call — actually, the voice 

signal from your phone — into a digital signal that travels through the Internet to the 

person you are calling. If you are calling a plain old telephone number, the signal 

is converted back at the other end. If you’re comfortable with new technology, you 

may want to learn more about VoIP. The Federal Trade Commission (FTC), the 

nation’s consumer protection agency, suggests that it’s smart to do some research on 

this technology before signing up for it.

VoIP Technology

VoIP technology is offered by some companies that specialize in VoIP service, 

some traditional telephone and cable companies, as well as some Internet Service 

Providers. Most services using VoIP allow you to call anyone with a telephone 

number — including local, long distance, cellular, and international numbers. Others 

may allow you to call only people with the same service. In addition, most VoIP 

services allow you to use a traditional telephone through an adaptor, but others work 

only over your computer or a special VoIP phone.
Facts for Consumers 

V O I C E over internet protocol

If you get VoIP service that allows you to 

make a call using a phone with an adaptor, 

you dial the same way you always have. If 

you get a VoIP service that works directly 

from your computer, you need to use 

special software, a microphone, speakers, 

and a sound card. If your service assigns 

you a regular phone number, anyone can 

call you from a regular phone – analog or 

digital – without any special equipment.

VoIP Services

Many VoIP services include unlimited 

local and long distance calling plans 

(at least within the United States 

and Canada) for a fixed price, 

plus a range of interesting 

features, like:

• the ability to have more 

than one phone number, 

including phone numbers 

with different area codes. For 

example, if you live in New York 

and your kids live in San Francisco, 

you can have a San Francisco phone 

number, and their calls to you will be 

local.

• integrated voicemail and email 

message systems so you can listen to 

your voicemail on your computer or 

your email on your phone.

• with special software and hardware, 

the ability to take your VoIP system 

with you if you travel with your 

computer. That means personal or 

business calls can be routed to you no 

matter where you are.

Caveats

Any decision to sign up for a VoIP service 

should be based on careful consideration 

of the facts, and your comfort level with 

technology. Investigate the companies you 

are considering for your service. Many 

Internet search engines can lead you to 

a wealth of information about consumer 

experiences with particular providers.

Among the issues to think about are:

Terms and Conditions. Ask about the 

costs, terms, and conditions of service. 

Many VoIP providers offer 

monthly calling plans: make sure 

you know the number and type 

of calls included in the amount 

you’ll be billed. VoIP plans 

generally look inexpensive 

compared to regular telephone 

plans, but don’t forget the cost 

of broadband Internet access. For 

most people, that will mean paying 

separately for cable modem service or 

digital subscriber line (DSL) service.

911 Services. The Federal 

Communications Commission requires 

most VoIP companies to provide 911 call 

services as a mandatory feature. That 

means they must transmit all 911 calls, 

callback numbers, and your registered 

physical location to your local emergency 

authorities or a statewide emergency 

operator. Before the provider can activate 

your phone service, you must register the 

physical location from which you’ll use the 

VoIP service; the provider must give you 

an easy way to update that information. 
Facts for Consumers

V O I C E over internet protocol

Keep your information up-to-date so 

emergency services can locate you. 

But, depending on your area, there 

are exceptions to this requirement 

that could leave you without 

access to 911 call services. 

Confirm with any VoIP 

company you’re considering 

that they provide VoIP 911 

call services and ask if there 

are any limitations on those 

services.

Limits of Service

• Phone Number: Many VoIP companies 

can arrange for your current phone 

number to be switched to your VoIP 

service, but that could take time; in the 

interim, you will have a new phone 

number.

• Directory Assistance: VoIP services 

don’t have the same access to 

directory assistance services as 

traditional telephone service does. 

Your telephone number probably 

won’t be included in directory service 

listings provided by the local telephone 

company. 

• Power or Service Outages: Consider 

backup phone service for power or 

service outages. 

• Do Not Call Registry. When you 

switch your telephone service to a 

VoIP provider, you may need to reregister your telephone number with 

the National Do Not Call Registry 

– even if your number stays the same. 

In addition, some actions (changing 

calling plans or other services, or 

changing the billing name on the 

account) may cause your registered 

phone number to be deleted 

from the Registry — even if 

your service has not been 

interrupted. To verify that your 

number is in the Registry, visit 

www.donotcall.gov or call 1-

888-382-1222 (TTY 1-866-290-

4236). Each time you re-register, 

telemarketers will have 31 days to 

take your number off their call lists.

Equipment and Installation. Installing 

VoIP service is not as simple as plugging 

in a telephone. You may have to connect 

equipment and adjust to a new system. 

Note that there are different ways to 

use the technology: An analog terminal 

adaptor works on your regular phone to 

enable VoIP calls. Or you can use special 

Internet telephones, known as IP phones, 

that look like traditional phones but have 

all the software and hardware necessary to 

connect directly to your computer’s router 

to make or receive calls. If you use VoIP 

to make computer-to-computer calls, you’ll 

need special software, a microphone, a 

sound card, and speakers. If you’re using 

VoIP and a phone adaptor to make calls, 

your computer doesn’t have to be turned 

on as long as your broadband Internet 

connection is working.

Security. VoIP calls are transmitted over 

the Internet, which raises security risks 

that are not an issue with regular telephone 

service. For example, VoIP services can 
Facts for Consumers

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

August 2006

Federal Trade Commission

Bureau of Consumer Protection

Division of Consumer and Business Education

be attacked by computer viruses or worms; 

you can be subject to SPIT (Spam over 

Internet Telephony), a new kind of spam, 

and left with mass voice mail messages 

in your inbox; and you can be caught in a 

denial of service attack.

The FTC works for the consumer to 

prevent fraudulent, deceptive, and unfair 

business practices in the marketplace and 

to provide information to help consumers 

spot, stop, and avoid them. To file a 

complaint or to get free information on 

consumer issues, visit ftc.gov or call 

toll-free, 1-877-FTC-HELP (1-877-382-

4357); TTY: 1-866-653-4261. The FTC 

enters Internet, telemarketing, identity 

theft, and other fraud-related complaints 

into Consumer Sentinel, a secure, online 

database available to hundreds of civil and 

criminal law enforcement agencies in the 

U.S. and abroad.