January 2006
| VoIP/Internet phoning pros and cons Like any technology, VoIP has pros and cons. Here are some of its good points. It costs you less. Unlimited calling plans start at $25 a month--sometimes less as part of promotions--and plans with a limited number of minutes may be even cheaper. A plan with 500 minutes of talk time, for example, might cost $15 or $20. While international calls are not covered by flat-rate plans, per-minute rates are often far lower than you'd otherwise pay. Verizon VoiceWing, for example, bills calls to Kingston, Jamaica, at 12 cents a minute; Verizon's lowest rate for a traditional landline plan is 38 cents a minute. Some providers offer unlimited in-network calling among subscribers, even if they're in different countries. One reason VoIP costs so much less than standard phone service is that it's not subject to all the taxes, surcharges, and other regulatory fees that jack up your landline and cell-phone bills. However, the Federal Communications Commission and Congress are examining various tax and regulatory issues, so that may change. It can cost your out-of-town callers less. If you regularly receive calls from someone in another state, you may be able to set up a second number in their area code. They can then dial that local number, which is redirected to your VoIP number. You may have to pay $5 to $8 a month for each extra number. You can use your home phone service from anywhere. Frequent travelers or users with more than one home can use any broadband Internet connection to place calls from their VoIP phone number, no matter where they are. About 30 percent of the users we surveyed have used this feature. To do so, you bring your VoIP adapter on your trip, connect it to a cable or DSL modem providing broadband access, and plug in a phone. You'll get services not found on landline. Because VoIP is an Internet-based service, it offers more capabilities than traditional phone lines. Depending on the provider, you may be able to have voice messages e-mailed to you as sound files, which you can click on to hear; view details of calls on an online log; forward calls to other numbers--say, your cell phone and office--if you expect an urgent call; and set up do-not-disturb times during which calls go directly into voice mail. drawbacks to consider While it has many positive attributes, VoIP still isn't for everyone. Here's why: It requires a broadband Internet connection. If you don't have cable or DSL broadband and get it specifically or primarily for VoIP, the typical $30 to $45 monthly fee will cancel out the savings. You need some computer savvy to get VoIP up and running. Two-thirds of the group we surveyed installed VoIP themselves, and about 40 percent of those do-it-yourselfers had problems. Things may not go smoothly even if a pro installs it. About 40 percent of that group said setup took more than two hours, or it required two visits or replacement hardware. Your VoIP phone won't work if you lose power or Internet access. Like a cordless phone, VoIP won't work during power outages. For about $45, you can buy a battery that provides four to six hours of talk time. But there's no way you can restore phone service if your cable or DSL broadband Internet access is disrupted. There may be potentially serious limitations with emergency 911 service. VoIP isn't yet a reliable replacement for landline emergency service for many consumers. Your location might not automatically be reported to the 911 operator, and your call might be routed differently, possibly causing delays. (See our January 2006 report, 911 when you need it.) As noted, you'll have no VoIP service if you lose power or Internet access. You could also have problems with home-security and medical-alert systems. There are possible security risks. Because VoIP is Internet-based, it's potentially vulnerable to viruses, hackers, and denial of service. No incidents have been reported, but the risk is there. A term has even been coined for one threat--SPIT, for Spam over Internet Telephony. Using the phone and Internet at the same time may affect service. In theory, you could run into problems using your broadband connection for both a phone and a computer. Internet access could slow or voice quality on calls could degrade if you're on the phone while someone uses the computer for bandwidth-intensive applications such as gaming, uploading photos, or downloading video. VoIP may not work well with phone-dependent services. TiVo and satellite-TV services using phone lines for program-guide updates and other functions may not work as easily with VoIP as they do with traditional phone service. |
