Many companies are now offering unlimited call plans through something called Voice over IP (VoIP) services. This technology allows calls to be placed from a computer over a broadband Internet connection to any phone number in the world.
The first VoIP service was launched by Net2Phone in 1996. It never really got off the ground because the dial-up connections most people had at that time produced poor voice quality. Today with broadband’s high speed, VoIP is finally making waves. This service also can now work independently of your PC with the help of a small converter that taps your household phone lines in to your network. This allows you to make phone calls from any ordinary phone in your house. Vonage is the company really responsible for this turn around. Other companies have jumped on the VoIP bandwagon since then, such as AT&T and VoicePulse, Inc.
Unlimited call plans via VoIP are very similar to those of more traditional long distance companies. They operate on a 10-digit number, and offer caller ID and call waiting, as well as some extra features not characteristic of traditional unlimited call plans. However, with the service working through your Internet plan, VoIP is not regulated in the same manner that telephone lines are. This was under debate until very recently, when the Federal Communications Commission approved VoIP provider Pulver.com to be immune from government rules, taxes and requirements applied to current telephone networks. This means that Pulver’s methods of communication are no different than any other forms of communication over the Internet.
This ruling does not apply to Vonage and other similar companies, however. See, Pulver represents Free World Dialup (FWD), which is software that allows voice conversations to take place between computers but does not include the use of ordinary phone lines. Therefore, the FCC might not be so lenient on those who offer unlimited calling plans resembling traditional phone services. These have yet to be judged upon. One year ago, however, the Minnesota Public Utilities Commission concluded in a federal court decision that VoIP provider Vonage was not subject to phone rules because it was not a telephone service. Therefore, providers like Vonage believe it is only a matter of time before the FCC will say the same.
One reason why VoIPs are becoming more popular is due to their competitive rates. AT&T VoIP unlimited call plans start at $34.99 a month, while VoicePulse and Vonage plans start at just $14.99 a month. Today there are nearly 300 VoIP providers and roughly 300,000 users. With all of these competitors out there, you can find rates as low as $10 a month! Just two years ago the same service cost about $45 a month; now it has become a die hard race to grab as many users as you can, even if it means making rates dirt cheap. In reality though, the average VoIP call plan is $35-$45.
When shopping these providers for long distance plans, keep in mind that you get what you pay for. For instance, a plan that is only $10 is probably a stripped down plan that limits calls to certain areas and caps your minutes. A couple of plans worth looking into are VoicePulse’s $15-a-month plan for unlimited local calling, and 8x8’s unlimited calling offer to anyone in the United States and Canada for $20 a month.
By Kelley Caner