The VoIP Value Equation
| Wait! Come back! You didn't think I'd bring you this far only to drop some heavy math on you and leave, did you? And for the guy who thought he knew which equation I was talking about? Sorry! The value of Internet phone service is much more common-sense than some equation. It is the money you will save with unlimited local and long-distance dialing, the free calls made by family members and friends to your number, and the inexpensive toll-free line you can add to your home business. More than unlimited minutesSure, you have seen the "unlimited long distance" plans from the long-distance telephone companies. But how many of them can offer this plus local telephone service for less than $25 a month? This is where VoIP brings the value home. Let's look at the ways VoIP providers save you money on long distance. All Local and Long-Distance Calls for One PriceWith VoIP, local and long-distance calls use the minutes in your plan. This is very similar to the way billing for cell phones is done. The main difference is the price for additional minutes. Cellular phone carriers charge various rates for overages; some charge for each block of 100 additional minutes, and others charge per minute. VoIP providers? Nada. If you choose one of the many plans available for $25 a month or less, you pay nothing for additional minutes. Long-distance carriers have similar plans. For a minimum fee usually around $25 a month you get unlimited long distance. But this is on top of whatever you are paying for your local phone service. Total cost? $50 to $100 per month. You save $25 or more by switching to VoIP. VoIP Peers Call Free with In-Network CallingIf your friends or family members use the same VoIP provider, in most cases they do not pay anything to call you (Figure 8.1). This means you can send your daughter off to college with VoIP, and she can call home all you want at no additional charge. You can even choose a simple softphone plan for about $10 per month that she can use from her dorm-room computer. Total cost for all the calls Mom wants? $10. Figure 8.1. Vonage's Web site explains its In-Network Calling feature. Free in-network calling even works for overseas calls. Get your relatives in the United Kingdom set up with VoIP, and call them for free at any time. (Just remember that it might be 4 a.m. over there when you're watching the Wimbledon-highlights show.) Virtual numbersIf your parents steadfastly refuse to make the switch, or if their home is not accessible to broadband Internet services, you can choose other options for low-cost calling. Virtual numbers are extra numbers that are added to your VoIP account. Costing $2 to $5 per month on average, they provide a phone number in another calling area that will ring on your home phone. Family and Friends Call FreeIf some of your family members cannot use VoIP for some reason, you can add a number in their area. This lets them call you at any time as a local call. When they call this number, they pay no long-distance charges. Overseas for Free?Many VoIP providers are adding the ability to obtain overseas virtual numbers. This allows you to get a number in Dublin that your aunt can call that will ring your phone in Dallas. She has to do nothing but memorize the new number. Tip Use care when choosing the provider's rate center (city code) for this line. Make sure the rate center you choose is within the same Local Access Transport Area (LATA) as your caller. Calls within a LATA are free, but calls between LATAs (Inter-LATA) incur a toll charge. Use Google to search for "LATA map" to locate resources to help you determine whether you can use this feature. International PlansMany VoIP providers offer excellent rates on international calls, connecting many parts of the world for no additional charge after the monthly fee. Table 8.1 shows a comparison of per-minute calling rates to several international cities from New York, USA.
Toll-free numbersFor as little as $5 a month. you can add a toll-free number to your VoIP account. A toll-free number typically comes with a pool of minutes, and you are charged by the minute after the pool is exhausted. Check with your chosen provider to see whether it offers this service. Note Inexpensive toll-free numbers are a great benefit to small home businesses. They give you that "big business" look for an affordable fee. They are also a great way to let traveling friends and family members call you for free. VoIP direct saves even moreIf you can do without the actual telephone, you can make VoIP-to-VoIP calls on the Internet for free. There is no charge to register and use services such as Skype, Free World Dialup, Yahoo!, and MSN for VoIP calling. You can call anywhere in the world with these services. Tip If you need to call someone who has a landline phone, a service like SkypeOut costs only 1.7 euro cents per minute (about 2 cents U.S.) and is run on a prepaid basis. This is fine for occasional use. More extensive use may justify moving to an international plan with a VoIP provider. |
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