Advantages and Disadvantages of VoIP Broadband Phone Service

Advantages of VoIP

By far the biggest benefit of VoIP broadband phone service is the cost savings. Internet phone service usually costs between $17 a month (for an annual unlimited prepaid plan) and $25 a month (for an unlimited monthly service plan). This usually works out to a little less than the price you would typically pay for very basic "land line" phone service. The big cost savings comes into play when you consider all the extra things you get with a subscription to broadband phone service (also known as "digital phone service").

For starters, all the best VoIP providers include tons of free calling features with their internet phone service plans - whether you choose an unlimited plan or a "limited" monthly plan. Features typically include voicemail, caller ID, call forwarding, call blocking, call waiting, call hold, and simultaneous ringing - just to name a few.   Although you can usually get these features added onto your traditional “land line” phone, phone companies charge extra for them. 

One of the nice benefits of VoIP is that everything regarding your broadband phone service can be managed online. You can look at your call details anytime you want, turn on/off features, have a copy of voicemail messages go to your email address and make any account changes. With digital phone service, you are in control of everything!

Internet phone service also includes free local and long distance calling within the US, Canada and Puerto Rico. A VoIP unlimited plan (the most common, and most cost effective) provides you with unlimited free long distance calls to these locations. People who make a lot of long distance calls always experience significant cost savings (average savings = $500 a year) when they switch from traditional phone service to unlimited digital phone service.

Those who don't make a lot of local and long distance calls might opt for a "limited" VoIP plan. These calling plans include a set number of "free" long distance calls within the US, Canada and Puerto Rico. Types of limited internet phone service plans vary by VoIP provider. Common plans are 200, 300 or 500 minutes per month for one low price. Prices for limited plans typically start around $10 a month for 200 minutes (Voip.com), or $9.95 per month for 500 minutes (ViaTalk ).

International long distance rates are super low with internet phone service. Much lower than long distance companies, cell phone providers and calling card international rates. See specific VoIP providers for details on the international calling rates they charge for the locations you are interested in calling. You will normally find that international calls are about 85% lower with VoIP service.

Another advantage of VoIP is that most broadband phone service providers offer softphone service as well (Packet8 and Voip.com give it to you for free!). A softphone is a software-based internet phone service that works off your computer or laptop. This is great for traveling, as it allows you to take your VoIP service with you. Your PC needs a sound card and an internet connection in order to use a softphone. For best results, use a headset with microphone or a USB phone.

Disadvantages of VoIP

There are some disadvantages to using broadband phone service as your primary home or business phone service. For starters, VoIP requires a broadband (high speed) internet connection. We recommend using cable internet as opposed to DSL or satellite broadband. Cable broadband service typically runs around $45 a month, so if you're accustomed to using dialup you will experience a slight increase in cost. This cost is offset however, due to the tremendous savings associated with VoIP. Since VoIP requires broadband internet, it will not work if your high speed internet connection is down.

Digital phone service also requires power. Unlike traditional land line wires which usually remain available for use (as long as you are using a non-powered phone) when the power is out, VoIP will not work if you do not have power. If you live in an area that is prone to power outages, VoIP is not recommended unless you also have a cell phone for backup.

Although you will be served by the national 911 network with VoIP, since an internet phone is associated with an IP address rather than a physical address, the emergency service used is called E911 (enhanced 911). In order for E911 to provide emergency operators with your physical address, you must ensure that your address is correctly registered with your VoIP provider. This is easy to do using VoIP online account management.

Although VoIP will work with most any existing telephone, it will not work with all the phones in your home or business unless you either modify the telephone wiring or use an expandable cordless phone system. The easiest and most convenient way to use VoIP on all the phones in your home is to use an expandable cordless phone system and bypass the need to use internal telephone wiring altogether!