TMCnews Featured Article

For almost a decade, techies have been circumventing the long-distance companies by using peer-to-peer software that enables IP-based voice calls via modem. The voice quality on these Internet phones was ludicrously bad, however, and you were lucky if you managed to make and keep your garbled connection. Now, thanks to dedicated hardware processing and increasing support for protocols like SIP (Session Initiation Protocol (News - Alert)), VoIP can be as smooth as a session that uses the regular telephone network, greatly increasing its appeal. Most software-based VoIP providers, with the notable exception of Skype (News - Alert), use SIP equipment, so you can choose your own handset in many cases.

 

Local phone companies are almost as threatened by VoIP as long-distance carriers, and many now offer their own VoIP services to compete with the upstarts. Verizon (News - Alert) has residential VoIP service, and SBC, BellSouth, and Qwest (News - Alert) all have VoIP services aimed at business customers. They join dozens of other providers that already offer high-end VoIP services to corporate customers. Businesses are particularly interested in VoIP's affordability, flexibility and the ability to upgrade via software. They also like its potential for tight integration with email and Web-based services for applications such as call centers, videoconferencing, and click-to-talk Web pages. Many of these features are migrating to consumer customers. For example, most consumer videoconferencing equipment uses the same SIP protocol used by VoIP, and affordable videophone options are available from Packet8, Motorola (News - Alert) (the Ojo), and others.

 

What about voice quality with VoIP? With one of the better services and a nice fat broadband pipe, you're not likely to tell the difference between VoIP and a landline, and you'll probably find it better than your cell phone. Two of the biggest early raps against VoIP -- the lack of white page listings and 411/911 access -- have all but disappeared for the major services (Skype is a notable exception). If these are important to you, be sure to check their cost and availability when selecting a plan.

 

One flaw, however, will always remain: VoIP only works if your broadband connection is working. If your power goes out, or your connection drops, so will your phone service. That's another good reason to look to the coming rollout of hybrid cell/VoIP services, so you have a fallback in emergencies.

 

On the flip side, one of VoIP's biggest savings comes from the relative lack of taxes and fees. That situation may not last forever, but the service should be relatively levy-free for the near future. Choose a good provider and you can expect quality service, cool features, and huge savings.