The Completely Untechnical Guide to Saving on Your Phone Bill with VoIP
December 17th, 2008
Photo by gemsling
If it hasn’t yet come to your attention that traditional phone lines are drastically overpriced, you should know that they are. Inefficient telephone line technology is over 100 years old and should only be used by those too set in their ways to consider changing. For even mildly flexible people however, there is a drastically better alternative.
Voice Over IP (VoIP)
VoIP simply refers to routing your phone calls through your internet connection. You need an adapter to make your existing phone connect to your high-speed internet connection but once that’s hooked up you’re talking for a fraction of the price.
Decisions, Decisions, Decisions
There are generally two options if you decide to save money by switching to a VoIP phone:
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The big internet providers make it quick and easy for you to impulse-buy their VoIP service, changing more and offering less technical support in the process. The smaller providers generally offer a better deal, but require a lot of research to find the one that best suits your needs and instills confidence. Hashing through all the VoIP review sites, comparing the nuanced differences and small print between competitors can be agonizing, especially when technobabble is mixed in.
I may be able to save you the hassle of searching for a VoIP provider. When I set out to find the best VoIP service I researched arduously online I ended up choosing babyTEL, a highly rated VoIP provider based out of Montréal. I have been using them for more than a year and am beyond satisfied with their performance. The only time I ever had to call their technical support line, an actual human answered the call on the second ring and immediately resolved my issue; a level of service unheard of in big company call centres.
How is VoIP better?
There are a variety of options available, but to give some insight into the types of advantages you can see with VoIP, consider this comparison:
| Traditional Phone Company | Internet Provider | VoIP Provider (babyTEL) | |
| Calls | Unlimited local calls | Unlimited local calls + unlimited calls to other subscribers nationwide | Unlimited to most of USA & Canada |
| Common Features (call display, call waiting, voicemail, et cetera) |
2 features | 1 feature | 20+ features |
| Monthly Cost (including miscellaneous fees) |
~ $36 (with hidden fees such as “TouchTone Service”) |
~ $36 (with hidden fees such as “System Access”) |
~ $31 (only hidden fee: $0.59 for enhanced 911 services) |
| All figures and features sourced from author’s locale as of writing and are subject to change without notice. | |||
This comparison generally holds true in many regions and with many companies. Of course your mileage may vary and choices of different packages will adjust prices and features accordingly. Regardless, it’s clear to see that paying for a traditional phone line is the least advantageous of options nowadays.
In order to route your phone calls through your high-speed internet connection, you will need to connect the adapter. Each company has their own choice of adapter. Here’s the general process:
Original Photo by edans
- Plug the adapter into the internet connection
- Plug the phone into the adapter
- Plug the adapter into the wall power outlet
In the case of babyTEL and many VoIP providers, that’s it. No configuration, no surprises, just pick up the receiver and hear a dial tone.
Bonuses
Once you’re setup you can really begin to notice and appreciate the advantages of VoIP. Such as:
- Ability to easily forward voicemails to your email
- Option of multiple phone numbers
- Choice of your “local” area code - it doesn’t have to be the same area code as where you live
- Portability of phone adapter to anywhere there’s an internet connection
The most confusing and liberating thing about VoIP is that phone numbers aren’t tied to a geographic location. You can choose your area code and bring the phone number anywhere. In other words, if you have a New York phone number and bring your phone adapter to Paris, you can make and receive local calls with fellow New Yorkers from across the ocean!
Caveat Emptor
While VoIP service offers many advantages, it does have some (usually acceptable) disadvantages.
- Slower internet connections can give choppy reception if downloading files during the call.
- Unlike a phone line, if the power goes out, you will not be able to make phone calls. Battery backups are available nevertheless and most people have access to a cell phone as an alternative.
- All household phones must be connected to the adapter. This is generally not a problem when using a centrally-located cordless phone. There are also wiring guides to show how to connect your existing household phone jacks to the adapter.
- If you bring the adapter to another location, you must remember to update your address with the service provider in case you need to call 911 - this informs 911 services of your location if you are unable to verbally provide it. However, this is more a limitation of an advantage; if you don’t relocate your adapter you will not need to update anything.
Motivation Versus Hesitation
Photo by psd
When deciding whether to make the switch to VoIP, you’re really making a choice between saving money and spending time: VoIP offers more features and lower prices, but requires you to take the time to learn something new and adapt to it. The fear of a nightmare scenario, where you spend a lot of time and money and ultimately end up disappointed with the results stops a lot of people from switching to something better. Hopefully this article has shown how profitable and easy it actually is to make the switch as well as how manageable the downsides are. Ever since I signed up my total monthly bill has been around $18/month and I have never looked back. Here’s to frugal phoning!
