VoIP Switching: Be Sure Of The Costs Before Committing

By: Adam Sowden

VoIP is rapidly replacing conventional phone services as the consumer turns to VoIP switching using the Internet to carry their conversations digitally rather than via phone lines. VoIP switching may be revolutionizing the way we communicate, but it is also opening the door to huge savings over traditional phone services. Perhaps your VoIP service may have the same monthly $30 fee, however unlike traditional phone services this can include a number of free features. These may include unlimited and un-timed long-distance calls within the United States and Canada, call waiting, caller-ID and voice mail - all for no additional charge. Whilst this opens the door to significant savings for those making lengthy long distance calls, remember that you are only saving if you use this service already.

Be Clear On The Total Cost To You

Before you switch to VoIP, be sure to identify all of the relevant costs. This will include the cost of both a broadband internet connection and VoIP adaptor to connect your phone to the broadband modem (this encodes your analogue phone signal into a digital signal that can be sent via the Internet.) You may also need to purchase an expandable cordless phone to your system as well as a router to enable you to be online and on the phone at the same time. Finally, you should also thoroughly investigate any associated carrier costs. In most cases, VoIP switching does provide significant savings, although you need to be sure that this is the case for you.

Other costs to be mindful of are Federal taxes that apply to the service, as well as some costs that vary according to your state. It may be useful to budget $5 per month on government taxes. In addition, the service provider will charge you an activation fee and you may also incur a disconnection fee if you cancel the contract within a year. Also be sure to check the rates that apply if you exceed your monthly time/call allowance. You may expect to pay four cents or more a minute for calls exceeding your monthly quota.

VoIP switching can offer great savings to the home and business user, but should be done following a thorough investigation of all costs involved. When tempted by a free trial offer, carefully check the equipment that you may need to purchase, any costs that you may be eligible for and read all fine print to ensure that you fully understand any obligations.

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