06/ 01/ 2005
by Lena Basha
Using a broadband Internet connection, a regular telephone and an adapter, Voice Over Internet Protocol, commonly known as VoIP, is a new and evolving technology that allows you to make and receive calls over the Internet that are indistinguishable from—and cheaper than—traditional landline calls.
What most love about VoIP is the flexibility, says Chris Lewis, founder of VoIPAction.com. “I can be in the middle of a call at my home office and need to go out to a lunch meeting,” he says. “With VoIP, I can transfer the call to my cell phone on the fly, and continue the call as I drive to my appointment.”
With more than 200 providers on the market today, VoIP is here to stay, and it’s only going to become more accessible for small businesses, says Lewis. But don’t ditch your traditional phone service just yet. As with any other technology, it’s important to compare the pros and cons.
Cost: Like many small-business owners, Lewis always used his cell phone as his primary business line, but he also had a landline at the office that he used mostly for local calls and faxing. A cellular calling plan with 4,000 minutes and the extra line in the office cost Lewis $355 a month. With VoIP and a lower-minute cellular plan, Lewis now pays $105 a month for phone service.
Number portability: Make sure your VoIP provider allows you to transfer your existing number, says Lewis. Otherwise, customers may not be able to get in touch with you.
Security: Because VoIP uses your Internet connection and is not yet regulated by the Federal Communications Commission, your phone line could be susceptible to spit (VoIP’s answer to spam). “Spit is much more deadly than its e-mail cousin,” says Lewis. With spit, voice quality can be reduced, which is very noticeable to end-users, he says. Make sure you find a provider that operates its network over a closed system, which makes it harder to hack.
Backup: Another downfall to VoIP is that when your Internet connection goes down, so does your phone service. It’s important to have a high-quality broadband service provider as well as a back-up method, such as a landline or a cell phone.
The Big Players
AT&T CallVantage offers clear call quality and good customer support. Cons include difficult set up and limited availability. Small-business unlimited plan: $50, http://www.att.com/callvantage.
Lingo offers unlimited calling plans that include calls to Canada and some European countries. On the downside, the quality of the calls is unpredictable. Small-business unlimited plan: $50, http://www.lingo.com.
Vonage, the most widespread and well-known VoIP provider, offers lots of free features and consistently clear call quality. Like AT&T, availability is limited. Small-business unlimited plan: $50, http://www.vonage.com.
To learn more about VoIP and to research providers, visit http://www.voipaction.com.
