VoIP: Not ready for prime time?By Rich Eichacker In 2003, barely anyone was using Voice over Internet Protocol (VoIP), a technology that routes phone conversations over the Internet. Today, there are over 5 million users and by 2010 it is estimated that there will be almost 25 million. VoIP is so hot that even traditional telephone companies, like AT&T, are getting into the game. Cable companies, including Comcast and Time Warner, have offered this service for a couple years and according to www.voipproviderslist.com, there are almost 600 companies in the US providing VoIP. But by far the most popular providers are the independents: companies such as Vonage, Skype, SunRocket, and Net2Phone. But growth and popularity in this industry does not equal success. Vonage, a prime example, has experienced a huge number of service complaints and their Internet business model has left many users without access to technical support or help with billing questions (such as being able to cancel the service). The financial market has pummeled their stock, down almost 60% since June, and now a number of traditional phone companies, including Verizon and Sprint, are suing for patent infringement. If you decide to subscribe to a VoIP service. Make sure you’re confident in the provider and keep in mind the following: Pros If all you care about is a cheap phone bill then VoIP is the way to go.
Because VoIP is an Internet service, there are no taxes or fees tacked onto your
bill. This, combined with the low cost of providing the service, can reduce your
bill down to the $20/month range. Quite a savings from traditional phone
service. Cons Among the biggest cons are quality, customer service, and 911 availability. Quality. According to studies by Brix Networks, Internet phone quality has actually dropped in the past 18 months. The main culprit: Internet traffic. As more users download larger files, e.g. from music or video sites, the Internet gets more congested. This causes routing delays, which results in garbled connections and frequent drop-outs. Service. As mentioned above, Vonage and other providers have received numerous complaints related to customer service. The big problem here is that no agency regulates the Internet. The FCC, which regulates phone providers, has no jurisdiction over Internet calls. Some people have turned to the FTC for help, but currently they are only colleting information and haven’t taken any punitive action. 911. Before you sign up with a provider, find out if your local emergency operator will be able to see your location. In most cases, this problem has been resolved, but it doesn’t hurt to check. Fall 2006 -Volume 16, Number 4 |
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