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Just about every major carrier--Qwest, MCI, Sprint and Verizon--each
has announced commitments to VoIP initiatives in the coming
months. Last Thursday, AT&T joined in with an announcement
of their own to sell VoIP (Voice over Internet Protocol) to
business customers "sometime next year".
For
the complete story, click here.
Faced with competition from new VoIP carriers such as Vonage,
the telcos are jumping on the bandwagon rather than be left
behind. One of the attractions of VoIP is an avoidance of
taxes and local fees that currently drive the cost of local
phone service up considerably. Once a customer's voice is
on the Internet, it can be sent just about anywhere at almost
no additional charge, resulting in very low long distance
fees (Vonage,
for instance, charges $34.95 per month which includes unlimited
long distance both in the U.S. and Canada). As a result, telcos
and long distance providers are facing a future with a dwindling
customer base. By jumping on the VoIP bandwagon, they can
cushion the blow and perhaps remain profitable.
For customers, the current VoIP scene is a series of choices.
If a customer has to have a telephone to receive broadband
services, VoIP may not save any money since the customer already
has to pay the basic telephone charge to receive service.
If the customer regularly rings up a large long-distance phone
bill on top of the basic phone charge, VoIP can be an attractive
addition.
If a customer receives broadband service from cable or a
wireless ISP, VoIP is a very attractive alternative. The only
caviats are that
1. unless the customer is currently served by a major telco,
the VoIP provider may not be able to secure a local phone
number for the customer (although they can have a phone number
from a nearby community that has the required "density").
2. If the power goes out, the customer will lose phone service
unless they've installed a UPS (Uninterruptible Power System)
to back up the VoIP handset and the cable or wireless modem.
Also, the customer should make sure any wireless service backs
up the power for their access point radios as well.
3. VoIP customers have to be carefull to set up their 911
option so the local emergency services will receive the proper
information when called.
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