VoIP Can Save You Hundreds Off Your Phone Bill!

A s high speed and broadband internet connections are becoming more prevalent in homes and businesses across the United States, people are asking themselves can VoIP calling save me money on my phone bill? In most cases the answer is yes, typically 40% or more.

When you place a VoIP call your voice is converted into a digital signal which is sent over the internet. When this signal reaches the intended destination, it is converted back into a voice signal. By sending the signal over the internet it doesn’t matter how far it has to go, a call across the street costs the same as call across the country. For people who have monthly long distance bills that are over $15, VoIP calling will most likley save you money on your phone bill.

When evaluating VoIP services you should have an idea of your monthly calling volume. The best thing to do is look at your phone bill for the past three months and evaluate your usage. How many local calls do you make each month? How many calls do you make that are billed as in-state long distance?  What is you out of state long distance usage?  In most cases you will find VoIP calling plans with limited minutes that are probably much less than your monthly phone bill. If you are using over 1000 minutes each month you’ll find unlimited calling plans will be more cost effective. If you make a lot of international calls, check the rates to the countries you dial frequently.

Some VoIP services require that you update your telephone equipment. It may be a consideration for a business user, but residential users should always choose services that are compatible with their present equipment. The key to the VoIP system is the Analog Telephone Adaptor, or ATA. It connects your broadband internet access with your telephone. The ATA will allow you to plug conventional phones directly into it, or if you have more than one telephone in your house it can connect to your existing wiring.   (NuTel provides detailed instructions and videos)

Additional factors to consider are "special rates" and contract duration. To entice you to subscribe, many companies now offer what have become known as 'teaser' rates.  They offer you a low rate for 6 months, but tie you to a contract of 12 months of more.  When the special rate expires you are charged the full rate for the remainder of the contract term.  While a two year contract may look attractive from a price standpoint, locking yourself into a developing technology for twenty four months is something to give serious consideration to.

VoIP can be a benifit to most all homes and businesses looking to save money.  VoIP savings comes from more than just the lower cost of phone calls.  There is also big savings on features such as Caller-ID, 3-way calling and voice mail.  The telephone company will charge for each of these services, or sometimes bundle them into higher priced packages.  Most common features are often included as part of the monthly fee for VoIP service, eliminating these extra costs.

Those that use VoIP for their home and business find better call quality, great features and a low fixed monthly cost.  About the only question they have is why they didn't switch to VoIP sooner!