Residential VoIP lets you make phone calls using your DSL or Cable Internet connection.  In general you need a phone adapter that connects to a cable or DSL modem on one hand and your existing phone on the other, refer to the figure below.

The service from major players gives you standard telephony features such as call waiting, caller id, redial, three-way calling, return call, voice messaging, etc.  There are even new features such as click to dial from your PC and checking your voice messages through the web.

Service plans from different vendors vary in monthly charges, features offered, and usage fees.  In general a calling plan with unlimited local and long distance calls costs between $25 and $40 per month.  International calls are extra but are usually offered at a discount.  If you make frequent international calls, you should visit the vendors web sites to see what rate they charge for the country or countries you make calls to.

Depending on the vendor and type of phone number you have, you may be able to keep your existing phone number.  You may even have the ability to have a different area code, for example, you could live in New York and have a California area code.  One drawback is if your neighbors call you from a land line they will be making a long distance call.

Of course a soft phone is an option as well. A software client on the PC takes the place of the standard phone. The client lets you do everything a phone does plus a lot more using the ability of the PC to handle voice and data simultaneously with ease.

Issues to consider:

  1. The Phone Adapter has a connection for a phone.  If you want to connect multiple phones like you currently have with land line service, you need to disconnect your home phone wiring from the telephone network and plug the Phone Adapter into an unused phone outlet.  This will allow you to connect a phone in any phone outlet in your house.  You need to carefully follow the instruction provided by your VoIP service provider when performing these changes.
  2. Your phone service will not operate during a power outage or if the cable/DSL modem or Phone Adapter is unplugged.  You will also lose service if there is a broadband service outage.  You will need to decide if this is acceptable to you since 911 service will also not be available during these outages.  A cell phone can act as a backup during time of outage.
  3. When deciding if VoIP is going to be a cost saving, you must remember to add this cost of the broadband service if you are not already subscribing to it.

What you need to know about 911

At present, VoIP residential service has NOT been integrated into the emergency calling network, standard 911 operators.  Since a VoIP number is not associated with a street address, you must register your street address with your provider.  When you dial 911 you call is routed to a Public Safety Answering Point (PSAP), you must be able to clearly state your location and type of emergency, the PSAP operator will not be able to determine your location like dialing from a standard phone line.  Some VoIP providers are starting to offer E911 in selected areas, this service allows your location information to be delivered to the PSAP operator when your 911 call is answered. When deciding on VoIP service, make sure you understand how your service provider handles 911 calls.

What equipment will or will not work

Most if not all providers have support for Fax as either part of their package or as an additional add on.  The following are either explicitly listed as not compatible with their service and should only be connected to a standard phone line or only some models may operate properly.  If you have any of the following or similar types of equipment, you must check with your provider to determine if they will be supported.

Selecting a vendor

The following tables compares the calling plans available from different vendors.  Please visit the providers web sites to determine if the service fits your needs, has the features you require, and is available in your area.

AT&T CallVantage
May be charged a disconnect fee in some cases

  Local Plan Service Plan Small Office Plan
Price/Month $19.99 $29.99 $49.99
Activation Fee $29.99 $29.99 $29.99
Local Service Unlimited Unlimited Unlimited
Long Distance 4 cents per minute Unlimited Unlimited
International

Website states "Save an average of 50% on international calls"

Optimum Voice

Price/Month $34.95
Activation Fee None
Local Service Unlimited
Long Distance Unlimited
International Website states "on average are more than 25% lower than the leading providers"

Time Warner Cable

Price/Month $39.95
Activation Fee None
Local Service Unlimited
Long Distance Unlimited
International Website states "competitive rates with other major carriers"

Verizon VoiceWing
Service requires a one-year commitment. Early termination fee of $19.95 applies.

Price/Month $34.95
Activation Fee $39.95 May waive
Local Service Unlimited
Long Distance Unlimited
International Website states "offers some of the lowest international rates available anywhere"

Vonage
May be charged $39.99 disconnect fee in some cases

  Basic 500 Premium Unlimited Small Business Basic Small Business Unlimited
Price/Month $14.99 $24.99 $39.99 $49.99
Activation Fee $29.99 $29.99 $29.99 $29.99
Local Service 500 Anytime minutes each additional minute  3.9 cents per minute Unlimited 1500 Anytime minutes each additional minute  3.9 cents per minute Unlimited
Long Distance Unlimited Unlimited
International

Website states "low international rates"