Internet Telephone Services for Individuals and Small Businesses

In a typical home or small office the traditional wired phone line has undergone many changes. High-speed Internet service and advances in voice and data compression have improved voice quality tremendously, making conversations possible without a telephone network while significantly lowering communications costs. Larger organizations have been using VoIP (Voice over Internet Protocol) for their phone needs for some time. Individuals and small businesses that mix landlines and cell phones can also benefit from this communications revolution.  VoIP technology allows voice calls to take place over an Internet connection instead of the traditional wired phone system. VoIP is a competitive and evolving technology that either requires or works best with a high-speed Internet connection. Numerous companies offer low-cost, high-quality services with an array of benefits. For some people more than one service may be useful. This article explores some of the options. Because these technologies are evolving rapidly, confirm all features and prices before signing up. LANDLINE REPLACEMENT SERVICES Landline replacement services are offered by local broadband providers such as AT&T, Comcast, Verizon, Time Warner and RCN. A technician comes out to replace or bypass the exterior connection from the phone company. You continue to use your old phones, and your phone number stays the same. You don't have to be a broadband subscriber, but you'll need to be within the broadband service area of your new provider. Third-party providers, such as Vonage and Packet8, require an existing broadband connection. Their equipment is designed for self-installation: A phone plugs directly into a small adapter. Professional installation is available in some areas for those who aren't comfortable with this process. Self-installation can be more complicated when dealing with multiple phone jacks throughout a home or office. VoIP services offer attractive rates compared with a traditional landline service. Typically, you get unlimited calling within the U.S. and Canada for a fixed monthly fee, voice mail, call waiting, caller ID, and other features that vary by provider. Broadband providers usually charge $30 to $45 per month for a full featured plan, and often offer introductory discounts or bundle packages with their "IV and Internet services. Since third-party providers require a separate broadband subscription, they typically charge less--about $15 to $25 per month. One drawback is that broadband phone service doesn't work during a power outage unless you and your broadband provider have a working battery backup. Traditional phone service is powered by the phone company and continues to work during a power outage. Also, a traditional phone line is hardwired to the local 911 emergency center. Some broadband phone services offer 911 calling, but this may not work during a power outage. Traditional phone lines are rarely unavailable, whereas broadband connections are occasionally unavailable due to failure or maintenance. Fax machines may not work or may only work at a slower speed. Another thing to keep in mind for multiline installations is whether the service supports a "call hunt" feature, in which incoming calls to the main phone number ring on the next available line. VONAGE V-PHONE Besides offering direct landline replacement ("no computer required"), Vonage also offers a small portable device that requires a computer. The device is called a V-Phone, which is a flash drive with a headset jack. It plugs into a Windows XP computer. The software runs from the device--nothing is installed onto the computer it's attached to. The device costs $29.99, then $24.99 per month for unlimited calls to the U.S., Canada and several European countries. Other plans start at $17.99 per month. The V-Phone only works with wired headsets, only with PCs (no Macs), and doesn't fully support Windows Vista. …

Field of study: Business