Phone Calls over the Net

By Elizabeth Wasserman for The Online Family

Before Aimee Male moved from California to Berlin earlier this year, she worried about something more than living in a new country: the phone bills she and her family would rack up to keep in touch. So Male, a copywriter for a wine importer, convinced her Hawaii-based parents to download a piece of software from a company called Skype that would allow them to turn their personal computers into virtual phone booths.

"Once they realized how easy it was to use -- and also that it was free -- they were very excited," Male says. "I can't even imagine how expensive it would be if we didn't use Skype. But now I can talk to my Mom for two hours and it doesn't cost a dime."

So how do the Males and other families like them ring each other up over the Internet? If you haven't heard of Voice over Internet Protocol (VoIP), that's OK. VoIP (pronounced either "voyp" or "vee-oh-eye-pee") routes telephone calls over the Internet by sending voice data in packets over the computer network, instead of using the traditional analog voice transmission over the public switched telephone network. Behind the techy term is a convenient and cost-saving trend that allows you to make phone calls via the Internet that in most cases doesn't cost anything beyond your regular Internet access fees -- the same way that e-mail doesn't require postage or other surcharges.

Getting started
In general, you need a computer and a broadband Internet connection (such as DSL, cable Internet or a similar connection). Dial-up Internet accesss won't do.

There are two main different types of VoIP, according to Ted Wallingford, author of O'Reilly Media's Switching to VoIP. First there are services that provide telephone replacement service, such as Vonage, VoicePulse, and AT&T's CallVantage. These services require an analog telephone adaptor that usually comes with a subscription for service.

The second type of VoIP service uses the computer to connect and carry calls, like Skype, Gizmo Project, and Yahoo's Instant Messenger with Voice. You can download those programs -- usually for free -- from the Internet. For example, to call a friend with Skype you simply add her Skype username to your contacts list (it works and looks very similar to your IM program), and then just click Call to reach her.

Most computers today also already come equipped with the basic microphone and speakers that you need to talk online. But an investment in a headset or new microphone and speakers designed for Net phone calls may improve sound quality and reduce echo.

The best of the different services?
Both categories of VoIP can be easier on the pocketbook than traditional landline phone calls. The savings, as Male found, can make the difference between a four-figure long distance phone bill and paying nothing for computer-based VoIP services. But the types of service have pros and cons.

"The advantage of a telephone-replacement service like Vonage is that you can easily use your existing phones," Wallingford says. "However, these services provide minimal integration with desktop computer applications such as your address book, [email program], or your web browser."

Skype and Gizmo, for example, provide "click-to-call" functionality so that you can click a link in your web browser to call the linked party, or you can dial by voice or direct from your computer-based address book.
 
Price ranges
The desktop VoIP services like Skype are free if you call another VoIP user. Even if your grandma doesn't want to get on board with Skype, you can still dial her regular phone from your set-up and you'll be charged a minimal per-minute fee. In the United States, Wallingford says that Skype or Gizmo users will pay about a penny a minute for such calls.

The phone replacement services like Vonage, on the other hand, tend to charge a fixed rate per month for a pre-determined calling plan, similar to your cell phone. These plans start at around $15 per month, Wallingford says. And most monthly rates include features like call waiting, voice mail or three-way calling.

What to watch out for
Before jumping into VoIP, you need to ask yourself whether your traditional telephone service is worth the fees that you pay in exchange for reliability. VoIP services are susceptible to computer crashes, viruses and worms and power outages. If you lose power, you lose Internet phone service.

For subscribers to a telephone replacement service, Wallingford says you can invest in a power backup system for your analog telephone adaptor and router, which run about $50 to $60. As most power outages last less than an hour, these systems should provide enough power for your VoIP phone to outlast a temporary blackout.

Emergency 911 calls can also pose an issue. The desktop VoIP applications such as Skype don't connect to any 911 support. And with telephone replacement services, though you can dial 911, there is no way to pinpoint your geographic location, Wallingford says: "Your 911 calls will be like those made on a traditional line in a rural area -- the dispatcher will need to ask where you're calling from."

Another possible snag with free desktop services like Skype: If your friends or family members aren't online and logged in, you won't be able to reach them. But just like you can do with your regular phone, you can leave a message. It's an adjustment that Male found was well worth the inconvenience in exchange for no more worries about the phone bill. "It makes keeping in touch easier," Male says, "and it makes it a lot more stress free."

Elizabeth Wasserman is a freelance writer and editor based in Fairfax, Va. She writes for a variety of publications including Congressional Quarterly, Inc magazine, and she edits the online publication CIO Strategy Center.