Voip: How To Avoid A Hefty Phone Bill

VoIP, or Voice-over-Internet-Protocol" is part of a new technology wave that is making communication both easier and cheaper. Not only does it allow you to connect your home or business to other phones via the internet, it does it with surprising speed and efficiency. VoIP is definitely a service that will continue to expand and offer new benefits. Even now though, it's something you might want to consider getting in on. Just make sure you're aware of the best way to get set up and that you follow the appropriate security guidelines.

What is VoIP, exactly?
VoIP is the term being used to describe different transmission technologies, all of which are for voice-to-voice communication via the Internet. Specifically, these technologies use IP networks (hence, voice-over-IP) or similar packet-switched networks.

VoIP has been around since 2004. The term is synonymous with IP telephony, Internet telephony, broadband telephony, broadband phone, and voice over broadband (VoBB).

VoIP services are offered both by phone companies and by broadband Internet access service companies. Subscribers to either service are able to both make and receive calls just as they would over the regular telephone network. The difference is that VoIP calls connect via the world's public IP-based packet-switch networks (the same network used by your computer to send and receive information). In contrast, calls placed over the regular telephone network use public circuit-switched telephone networks.

How can you get VoIP?

There are three main ways to connect to VoIP service providers:

- You can purchase a softphone, which may also be called a Digital phone or an Internet phone. A softphone is software that can be installed on your computer to allow for VoIP calling. One advantage to using a softphone along with the services of a VoIP provider is the ability to keep the same phone number regardless of where you move (even if it's to another country). Another advantage to a softphone is that it doesn't require you to install dedicated hardware on your computer system.

- You can get an Analog Telephone Adapter (ATA), which connects between an IP network (such as broadband) and an existing telephone jack. This service is usually offered by providers of broadband connections such as telephone companies and cable companies. It is fixed to a single location within your residence and is often a cheaper flat-rate type of phone service.

- You may also purchase a dedicated VoIP phone, which allows for calls without the use of a computer. These phones connect directly to your IP network either wirelessly or through an Ethernet cable. To access this service, you must sign up with a VoIP service provider that offers a paid service plan.

Why VoIP saves money

VoIP is both efficient and comes at a low cost. For a flat monthly fee, you can make as many VoIP calls as you'd like. There are no minutes to keep track of and no long-distance fees to pay. Depending on the provider, international calls may even be free.

VoIP is advantageous to both consumers and businesses. Many offices are transitioning from the well-known copper-wire telephone systems of the past to VoIP systems because of the potential to drastically reduce their monthly phone costs. In addition, VoIP offers businesses the advantage of using a single network for voice and data communications, a move which means significant savings in infrastructure design.

VoIP also offers savings potential due to its lack of added fees. It allows for calling features such as caller ID, call forwarding, conference calling, and automatic redial at no extra cost. Many VoIP setups also make it possible to transmit more than one telephone call over the same broadband connection at the same time, essentially allowing for an extra telephone line at no extra charge.

The risk of VoIP

Like all good things available through the Internet, VoIP services can be hacked. Criminals can hack into your VoIP phone system and use it to make their own calls. One small business in Australia recently discovered thieves had infiltrated their VoIP system settings and used the system to make 11,000 international calls over a period of less than two days. Because the company VoIP setup charged for international calls, the resulting bill was $120,000.

To protect yourself from such fraud, you simply need to invest in security software. Install firewalls on your phone system just as you do on your computer. The type of VoIP service you choose will determine the type of protection you need. Ask your VoIP service provider for recommendations on firewalls and other security protections. If you access your service via a password, be sure to change your password regularly and use both letters and numbers in your password.

The future of VoIP

The future for VoIP looks quite bright, with plans in the making to use a pure VoIP infrastructure for virtually all forms of communication. This includes accessing the Web, sending email and instant messages, video conferencing, and interfacing with mobile phone networks.

Mindy Tyson McHorse is a contributing writer for BillSavings.com, your information resource and community for money-saving tips and offers so you can shop, compare, and save money on just about everything.

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