According To Consumer Reports, VoIP Users Find Lower Cost, More Features, but Also 911 Risks7 December 2005
Consumers tired of paying big bills for traditional landline telephone service are increasingly turning to Internet phone service programs for some financial relief. According to the January issue of Consumer Reports, consumers are saving $20 to $50 or more a month by using VoIP and enjoying many more features and capabilities. But the experts at Consumer Reports note that consumers who use VoIP phone services may also have limited access to emergency 911 services and for this reason, Consumer Reports strongly recommends that consumers keep a basic landline even if they get VoIP for day-to-day use. Despite drawbacks and limitations to VoIP phone service, a nationally-representative Consumer Reports survey of 201 VoIP users shows that more than half were highly satisfied using VoIP in light of costs, service, and problems. A free comparison chart of some of the major VoIP service providers and plans is available at http://www.ConsumerReports.org?source=CR50 (http://www.ConsumerReports.org).
VoIP, or Voice over Internet Protocol, transmits voice calls over the same Internet lines that carry e-mail. Along with lower rates, most VoIP providers also include typical add-on features such as voice mail, caller ID, and call waiting, plus others such as the ability to make local calls using a home number even when thousands of miles away from home. Consumer Reports points out that VoIP requires a broadband connection such as cable or DSL, and the service won't work if the power goes out or the Internet connection is lost.
Consumer Reports notes that with VoIP, there may be potentially serious limitations with access to emergency 911 service. VoIP isn't yet a reliable replacement for landline emergency service for many consumers. The 911 operator may not be automatically informed of the caller's location and VoIP calls may be routed differently, possibly causing delays. The FCC directed VoIP providers to make their services E911-compatible by November 28, 2005. Some urban areas in the U.S. are supporting E911 calls from most VoIP providers, while rural areas are taking longer to comply. Consumer Reports strongly recommends that consumers keep a basic landline even if they get VoIP for day-to- day use.
VoIP Benefits
Consumer Reports notes that despite the 911 risks with VoIP, there are many benefits to VoIP service.
-- Cost Savings - Unlimited calling plans start at around $25 a month - sometimes less as part of promotions - and plans with a limited number of minutes may be even cheaper. International calls are not covered by flat-rate plans but per-minute rates are often far lower than a consumer would otherwise pay.
-- Out-of town callers can pay less - VoIP may allow portability of the current phone number but also provides the opportunity to choose a new area code in another state, therefore creating a local phone number in a new area.
-- Use a home number from anywhere - Frequent travelers with more than one home can use any broadband Internet connection to place calls from their VoIP phone number.
-- Services not found on landline - Some providers allow messages to be emailed as sound files, offer the ability to view details of calls on an online log, forward calls to another number - say a cell phone or the office, and set up do-not disturb times during which calls go directly into voice mail.
The Bottom Line
For consumers who can deal with the potential problems, VoIP can be a great way to cut phone bills, increase talk time, and add useful new services. Consumer Reports urges consumers to keep a corded phone (requiring no power) and a landline plan for emergencies. Consumers who spend more than $60 for local and long-distance service may save money with VoIP. Consumer Reports recommends the following steps to finding the right VoIP provider:
-- See which serve your area - it could be the Internet service provider, cable company, or phone company.
-- Compare all plans - flat rate plans are good for big talkers while a basic plan can save money if consumers don't make many long-distance calls.
-- Look for services - services vary among providers.
-- Check international rates - per-minute rates vary considerably among providers.
-- Read the fine print - ask about service commitments, activation fees, billing and early termination fees.
Consumers can visit http://www.ConsumerReports.org?source=CR51 (http://www.ConsumerReports.org) to find a free comparison chart of some of the major VoIP plans and service providers.
EDITOR'S NOTE: An image of this month's Consumer Reports cover is available online for free editorial use at:
http://www.usnewswire.com/attach/CR_cover.jpg
http://www.usnewswire.com/
Source: usnewswire
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