UNTIMED Local, STD and International calls for 10 cents: it all sounds good, but is it too good to be true?

'Voice over Internet Protocol' or VoIP, is a technology that allows you to make telephone calls using a Broadband Internet connection instead of a regular (or analogue) phone line.

How does it work?

A VoIP adapter converts the analogue signal from your telephone into a digital signal that travels over the Internet, and then gets converted back to analogue at the other end, so you can speak to anyone with a regular phone number. When placing a VoIP call using specially designed SIP phone or an ordinary PSTN phone with a VoIP adapter, you will hear a dial tone and you can dial, just as if you were using an traditional telephone. You can also make a call directly from a computer using a USB ‘phone or a headset with microphone.

Why is VoIP so much cheaper?

Each VoIP telephone call is routed over the Internet in the same way as any other digital data, so it does not cost anything until it is converted back into an analog signal at the point when it appears in the normal telephone network. Suppose, for example, you were making a VoIP call to a fixed line number in London. Your call would travel to the UK over the Internet and then appear in the local telephone network as a local call when you start talking to the person at the other end.

Many VoIP service providers allow you to make free calls to other subscribers to the same service for the simple reason that it costs them nothing.

Can I use VoIP with any Broadband Internet Service?

VoIP tends to work best with ADSL or wireless Broadband services with at least 512/512 kbps in both directions to obtain a good quality. That is not to say it will not work with a slower Broadband service, but the quality will be significantly reduced.

This means that VoIP may not work with many cheaper 256 kbps Broadband services, because the upload speed is usually only 64 or 128 kbps. You should be able to hear without any problems, but the person at the other end may experience speech distortion problems similar to a mobile phone with a weak signal.

Because of the latency inherent with Satellite Broadband services, a specially configured VoIP adapter is required, but even then the quality may not be the best possible.

What do I need to make a VoIP Call?

You need to set up an account with a VoIP service provider such as MyNetFone or Skype.

Then, depending on the service, you can use a regular phone connected to a VoIP adaptor that connects to your Broadband Internet connection. You can also use a microphone headset plugged into your computer. The number is entered using the keyboard and is routed through your Broadband modem.

In my experience, the Linksys SIP business phones offer the best clarity. These look much like an ordinary business phone, but they have all the software and hardware required for VoIP inside them. You just plug them into a router. Prices range from $99 for a basic handset to $249 for a fully featured business phone with all bells and whistles such as a directory, hands free calling, multiple lines, etc.

The $499 Linksys WIP330 Wi-fi phone offers exceptional clarity and convenience, but clearly the price tag will deter all but the most determined technophiles.

You can also buy a preconfigured device from the service provider of your choice. However, there is a downside in that it is usually locked to the service provider, so you will not be able to transfer the device to another service provider if you find a better deal. The cost is usually from $49 for a basic box with a QoS (quality of service) feature, but expect to pay in the region of $99 for a quality device.

A feature called Quality of Service (QoS) is essential to ensure clarity is maintained by keeping voice data together when travelling over the Internet.

How much does a VoIP call cost?

There is variation between VoIP service providers - some charge by the minute and others offer untimed National and local calls.

The usual call rate to a fixed line is 10c untimed, anywhere in Australia. Calls to mobiles are around 20c per minute, often timed by the second (i.e. no flagfall).

International calls may be more expensive, but there will be substantial savings compared with normal telephone services. Companies such as MyNetFone offer 'Global saver' accounts that enable you to make untimed International calls to many popular destinations for only 10c.

Most VoIP service providers allow you to make free calls to another subscriber on the same service, so it can be advantageous to organize your friends, relatives, neighbours and business associates to all sign up with the same service.

Can I keep my current PSTN number?

There is no current arrangement between VoIP providers and PSTN providers to port numbers from one type of service to the other and clearly it is not in the best interests of the latter to sign up for such an arrangement until legally required to do so.

Can I use my computer while I talk on the phone?

Yes.

Can I use VoIP for my business?

Yes. A standard IP business phone or IP-PBX Internet telephony system has the potential to save any business a huge amount of money in telephone calls costs by using a Broadband Internet connection. This technology is used by many major corporations such as Microsoft

If you have a number of branches all on the same system, calls between subscribers on the same service are free.

However, due to the complexity of the Internet, there will always be the possibility of problems, so it is advisable to retain an analogue telephone service as a backup in case there are any glitches with the VoIP service.

Can I use VoIP for my Fax machine?

The technology is not quite there yet, but there are electronic Fax services that enable you to receive Faxes as an attachment to an email.

What are some disadvantages of VoIP?

If you're considering replacing your traditional telephone service with VoIP, there are some possible pitfalls:

• Call quality can be variable - it is certainly not as good as traditional copper wire phone services. However, for most of the time it is good enough, and the potential for big savings can make it worth putting up with some of the problems.

• VoIP services do not work during power outages.  It is essential to have access to a backup phone in case of emergency – this could be a mobile if you get good reception at your premises or you may need to maintain an analogue line.

• A faster Broadband service is required.

• Emergency services have no way of tracking your location if you call 000. Similarly, central call numbers for taxis or pizza delivery services and the like cannot route your call to the nearest service location.

What are some more unique advantages of VoIP?

VoIP has some features not available from traditional phone services:

• Incoming phone calls are automatically routed to your VoIP phone wherever you plug it into the Internet. Take your VoIP phone with you on a trip to make and receive calls anywhere you connect it to a Broadband Internet connection. .

• This feature makes it possible to work from multiple locations. For example, a company with offices and staff in several locations can easily and cheaply transfer calls without the caller even realising they are not in the same building..

• Many VoIP providers permit you to select an area or country code different from the area in which you live. This can be useful if you do a lot of business with customers in another region of Australia or even overseas, because customers do not incur long distance call charges.

Does my computer have to be turned on?

Not if you are making calls with a phone and adaptor or special VoIP phone, but your ADSL Internet connection needs to be active.

How do I know when someone calls me on my VoIP service?

The phone will ring like any other call.

Which is the best VoIP service Provider?

There are a growing number of small and large VoIP service providers with different pricing structures. www.whirlpool.net.au provides a comprehensive list. If you are looking for a service as a cheaper supplement to your traditional phone, then cheap and cheerful will be the way to go. However, if you want a better quality service, then a more reputable service provider such as Australian VoIP service provider MyNetFone is the way to go.

Will VoIP services take over from traditional telephone services?

Broadband telephony is gaining ground among consumers and there are suggestions by market analysts that VoIP will take over from analogue services, but this may be pure hype.

However, the cheap pricing fundamentally challenges a business model based on ownership of the copper wire network.

My prediction is that VoIP telephony will give the major telecoms a severe migraine by challenging their near monopoly of voice services.

Please check out our range of Linksys VoIP adapters and SIP phones. For a reasonable fee, we can supply and install a VoIP phone connected to the MyNetFone network. We also offer free equipment trials within a 50 km radius - you just pay the cost of any calls you make. We can also supply preconfigured VoIP equipment - all you have to do is plug it into your Broadband router.

Paul Heymans ©