Choosing a VoIP Service Provider (complete check list)

You have likely heard of Voice Over Internet Protocol phones by now, commonly called VoIP Service or Internet phones. VoIP Service has been around for many years, but in the past few months the service quality and number of VoIP service provider has greatly increased.
After trying my first VoIP phone in 2003, I was sold on the idea that you no longer needed a wired telephone landline to make calls. VoIP Service opens up all sorts of new possibilities and conveniences that are just not possible with wired landlines these days.
VoIP is definitely not an alternative to a cell phone and I suspect that many people in North America will continue to rely on their "landline" phones for years to come, despite marketing attempts by wireless service providers to drop their "landlines". No VoIP service provider truly offers a plan that is the same as a landline service, nor are you able to pick and choose your long distance service provider with a cell phone plan. Both cell phone and landline plans are often sold on airtime (or usually unlimited airtime on landlines), but extra features like call waiting, call display, or voice mail are charged extra. Now with VoIP Service all the extras are included and the price might be a lot more reasonable, but there are other issues that you need to know about before making the switch.

What is VoIP?

A VoIP phone uses an existing high speed internet connection (Cable, ADSL, office LAN, etc) to make phone calls over the internet. You use a regular telephone, but instead of your voice being carried over a landline wired connection, your voice is digitized by a VoIP interface and then is sent over the internet. The caller on the other end could be on a regular landline, cellular phone, or even another VoIP connection. In most cases the other caller will not be able to tell that you are using a VoIP Service Provider connection.

Where is VoIP available?

If you have a high speed internet connection, then you can have a VoIP phone. There are many VoIP Service Providers in both the US and Canada that are now offering VoIP Service.

What equipment do you need?

Signing up with a VoIP Service Provider is just like signing up with a landline service provider or a cellular provider. They sell you a monthly service, but first they must provide you with some equipment to use their service. Landline service provider likely install wires into your residence and cellular phone providers sell you either a phone or a SIM card. VoIP Service provider will give, rent, or sell you an interface box that you then plug in both a regular landline phone and a high speed internet connection. Beyond the interface box, you'll obviously need a stable high speed internet connection - dial up internet service will not work with VoIP Service. Your current Internet Service Provider (ISP) must allow provide you with at least 2 IP addresses since your VoIP phone will need one address all to itself; the second IP address would be used by your computer.

What plans are offered by VoIP service providers?

Like cell phone plans, VoIP plans vary greatly between service providers. Features offered by plans vary, but expect some or all of these in a typical VoIP monthly plan:

• Call Display (with or without name)
• Call Waiting
• Conference Call (3-5 way calling)
• Web Interface Portal
• Unlimited North American Long Distance
• Fax-to-Email
• Virtual Number
• White Page Listing
• Free calling between VoIP subscribers using the same service provider
• Repeat Dialing
• Do Not Disturb
• Call Return
• Speed Dialing
• Voice Mail
• Call Forwarding

Almost any VoIP Service Provider offers either a set amount of outgoing airtime per month (incoming calls are usually free) or an unlimited airtime plan. Many VoIP service providers also offer business plans that require higher amounts of airtime.

Can I choose my long distance provider on VoIP?

Like cellular phone service providers, the answer is no. Your VoIP Service Provider will also be your long distance provider. The positive news is that your VoIP Service Provider will likely offer FREE long distance anywhere in Canada and the US under your service plan. Some of the cheaper plans with some VoIP Service Providers may limit your long distance to one province or state, so make sure to check before signing up.
Because you don't have the choice for long distance with VoIP, it is important that you consider your long distance usage prior to signing up. This includes any international calls you might make or calls to locations that are often excluded in "North American" plans (usually this means Alaska, Hawaii, Yukon, Northwest, and Nunavut territories). Like regular landline long distance, rates vary greatly between VoIP Service Providers. Most VoIP service provider websites have links where you can see their rates.

Can I take my VoIP service with me?

Because all you need is the interface box and a high speed internet connection, you can take your VoIP service anywhere in the world. For example, you travel to Italy for two months and plug your VoIP service into a high speed internet connection there. You now have a telephone line that you can make and receive calls on, just like you did at home - same number, same long distance and everything. Callers to your number would not even know that you are overseas!
This feature also means that you can have a local number in another city and callers will not know where you are physically based. For example, a business VoIP line could have a number in Toronto, but the phone is physically located in Calgary.

What about 911 services?

Because your VoIP is not physically tied to an address, 911 services could be an issue since a 911 call would not be routed correctly. Recently VoIP Service Providers have been addressing this issue and now many VoIP Service Providers allow you to set (and change) the physical location of your VoIP service. If a 911 call was made from your VoIP line then the physical location on the VoIP file would transfer your call to your local 911 office.

There are two major drawbacks with VoIP that any user should be aware of. If either your internet connection or your power goes down then you do not have a phone. This is unlike landlines that may work both independently of your internet connection and will usually continue to work even during a power outage. My recommendation would be to ensure that you have a cell phone available if either your internet connection or power goes down.