Guest Author - Debbie Jacobsen

More and more people are hearing about the tremendous cost-savings associated with internet phone service these days, and are ready to take the plunge. Before you sign up for a VoIP plan though, there are some things that you need to take into consideration. First, here’s a brief introduction to VoIP internet phone service.

VoIP is a technical acronym meaning Voice Over Internet Protocol. It pertains to a set of “rules” and “procedures” that make it possible to make telephone calls over the internet. VoIP is also a term that has come to describe what we consumers refer to as Internet Phone Service.

VoIP started getting popular a couple of years ago, but the technology has actually been around since the mid 1990’s. In the early days of the World Wide Web, internet phone calls were made through a computer that was connected to the internet. Special software enabled a computer (equipped with a sound card and microphone) to act as a telephone. Users simply dialed a phone number from the software interface and could connect to a telephone anywhere in the world.

Today, a special box known as a VoIP adapter or ATA is connected directly to your broadband modem – allowing internet phone calls to be made directly from a telephone that is also connected to the box. This eliminates the need for a computer, and makes calling over the internet as easy as picking up the phone and dialing a number.

The cost savings associated with VoIP is tremendous, which is why so many people are canceling their traditional land line phone service in favor if internet telephony. Depending on long distance usage habits, most VoIP users realize a savings of $500 a year or more. Although VoIP is the perfect solution for millions of people though, it is not necessarily for everyone. Internet phone service works just like traditional land line service, but there are some differences in the technology that need to be considered before you make the switch.

Traditional “land line” phone service requires no power (when used with a regular analog phone), so you never lose service when the power goes out. The VoIP adapter that is used with internet phone service does require power, so when the power goes out, so does the phone. Although this is not an issue for many people who also have a cell phone, VoIP may not be a good choice for you if you don’t use a mobile phone or if you live in an area prone to frequent power outages.

A broadband internet connection is required in order to use VoIP as your primary residential phone. If you still use dial-up for internet access and don’t want to switch to broadband, you cannot use VoIP. For many people, the cost associated with upgrading to broadband internet is irrelevant because of the savings achieved with internet phone service. This is particularly true if you make a lot of long distance calls. For people who don’t make many calls or don’t use the internet much, it may not make sense to upgrade to broadband internet service.

In order to use internet phone service throughout your house, you’ll need to either get an expandable cordless phone system or make a change to your telephone wiring. Because VoIP does not use telephone wiring, your existing phones may not all work unless you make some modifications. The VoIP adapter connects to one telephone only. The easiest way to use VoIP throughout your house is to buy an expandable cordless phone system. Connect the base unit to your VoIP adapter and then place the expansion units wherever you want.

Internet phone service is a great way to save money on phone calls. Depending on the VoIP provider, unlimited calling plans range between $20 - $40 per month, and international long distance rates are as low as you’ll find. Residential VoIP service makes good financial sense for most people, but may not be the best option for others. Before switching to VoIP, learn all you can about the technology and compare the plans of several internet phone service providers to make sure you get the right service for your individual needs.

For more information on internet phone service, see The Best VoIP Providers for the Money.