Making phone calls over the internet isn’t just for the tech savvy anymore. Now, using VoIP or Voice over Internet Protocol it has become easier than ever. Better yet, VoIP enables you to drastically reduce your phone bill. But as with any technology, I’m sure you’re left scratching your head as to what the best all around solution is for you. You have many options, prices and plans vary significantly, and competition is fierce - so it’s important that you arm yourself with as much info and knowledge before making your purchase. Here’s a quick rundown on all the key things you need to know about VoIP.

Even though Voice over Internet Protocol has now been around for 5 years or so, many users are still baffled about exactly how it works and what they need to do to get started. In essence VoIP is a general term for a family of transmission technologies for delivery of voice communications over IP networks such as the Internet or other packet-switched networks. At the simplest level, this means that provided you have a broadband internet connection, you can use VoIP technology and VoIP services to make and receive phone calls.

But how does VoIP save you money?

Easy.

Because the calls travel on the web rather than the copper wire networks of the major phone companies, VoIP service providers can offers rates way below those of traditional, established carriers. In some great cases, these calls can even be free! VoIP technology does this by converting sound waves into packets of electronic data. Once this happens, it’s a relatively straightforward process of streaming these packets of information over the Internet, just like how everything from your emails to the web pages you view on your PC are transmitted.

So given all this, how can VoIP of benefit you to your business? The biggest things is that you’ll really no longer need a land line if you decide to get VoIP. If you make a lot of international phone calls, you can expect to shave a large percentage off your monthly phone charges. Imagine no longer paying fixed line rental. Sounds good? Well, it can be that simple.

It’s important to point out that the cost of calls to regular phones is also much cheaper, with many major service providers offering you untimed calls anywhere in the U.S for as little as 10 cents. International rates vary, but most countries can be called for less than 4 cents per minute. Another big plus with a VoIP service is that it’s portable. As long as you have access to a broadband connection, you can effectively take your phone number with you wherever you go. So, if you’re in a hotel in the France, calls to your United States VoIP number will come straight to you. You will also be able to make outgoing calls for the same rate as you can at home.

Nowadays, VoIP hardware and software has been designed to make PC-Based VOIP calling as comfortable as possible. For example, Plantronics offers a cordless Bluetooth headset that slips over your ear. Just plug the receiver into a USB port on your PC and you’re away. You can even go one step further and get VoIP enable headsets along with VoIP Enabled phones.

Is it worth getting VoIP? Well that depends on your needs. But most often than not it does work out better for many users. Remember, when choosing your VoIP service provider and tailored VoIP packages to avoid the following misconceptions. While VoIP is great, it’s not perfect. Here are our top 5…..

1. VoIP calls are free - While VoIP calls between two PCs are free, if you’re looking to call a landline phone, you’ll have to pay. Fortunately, this is much cheaper than a fixed line rate; on average, VoIP local/STD calls are untimed and cost just 10 cents.

2. VoIP lines can survive electrical blackouts - Unlike your regular telephone line, when the electricity to your home cuts out, so too does your Internet connection and thus, your VoIP line.

3. Landline numbers are easily ported over to a VoIP service - If you decide to take the plunge to VoIP, chances are you’ll need to live with using a new phone number. Each VoIP user is provided with a unique telephone number, however, relationships between traditional fixed line vendors and VoIP providers are far from strong, so porting numbers is difficult.

4. Calls can only be made from in front of a computer - Although this was the case when VoIP first emerged, the recent emergence of wireless VoIP handsets and telephone adaptors provides VoIP users with just as much freedom as they’d have with a fixed line phone.

5. Dial-up Internet is sufficient - If you want call quality to be anywhere near the level of your regular landline, the low bandwidth of a dialup connection just won’t cut it. At least a 512kbps broadband plan is preferable, and if you’re looking to ditch your landline, a cable, satellite or wireless broadband solution should be picked over ADSL.

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