Residential VoIP - No Operators

Some say the media sensationalizes our economic woes for their personal gain. Others say the media accurately portrays the extreme financial burdens we find ourselves facing. And some people say, “Hey. I don’t care about anything, I always have and always will try to save money.” With today’s world becoming increasingly digital, VoIP (digital telephone) seems like a naturally good idea.

Clearly, we at VoIP Tech Chat advocate VoIP. We love it. We love it so much, we made a website called VoIP Tech Chat. And we actually now and then have chats and write articles on VoIP (ok, that last part was a little sarcastically since both Patrick and Fred seem to have been too busy to actually talk or write lately… but anyway…).

Residential Telephone Service and VoIP

If you can read this, you probably live somewhere. Or you’re a robot… which would be AWESOME since we are desperately trying to increase our robotic readership, but seriously, most people in our “audience” live somewhere and have residential phone service. Well, we should say most people used to have residential phone service.

Ten years ago, Mobile Phones were a novelty. Today, they are viewed as a necessity. In the United States, more people have wireless phone service than have traditional landline (POTS) telephone service. And, even with higher drop rates, lower voice quality, and service availability issues, 1/3rd of the current US population live in “wireless only” households (interestingly a very small percentage live in a landline only household, with the group represented mostly by persons “well over” retirement age).

There are some disadvantages to the Wireless Only approach, including emergency calling (aka 911), coverage, name listing in directories, and cost. If you are a “heavy” talker, your wireless phone bill can be very costly depending on your usage. The advantages include calling features (such as caller id and voicemail), having your phone with you at all times, and (interestingly enough) the ability to make emergency calls away from the house.

But wait… isn’t this VoIP Tech Chat? Yes Virgina… let’s continue. VoIP generally provides advanced (and included) calling features, “unlimited” local/long distance calling, inexpensive international rates, and all at a price less than your traditional POTS landline service. The negatives with VoIP? VoIP 911 service does not compare to landline usage. Although most VoIP providers implement an e911 service, the reliability of VoIP for emergency calls does not compare to a landline. A landline simply provides better 911 service, period. (we actually wrote a pretty decent article about VoIP and 911 back in the day… )

Landline POTS telephone service remains the most reliable telephone service available. The consistently maintain five-nine (99.999%) availability and provide the best access to emergency service (911). POTS service also comes with a limited feature set (by default) and hefty price tag.

Let’s compare VoIP, Traditional Telephone, and Wireless

Verizon Unlimited Local service starts at $24.95 per month. If you wanted Caller ID, Voicemail, and Call Waiting (with Caller ID) your bill jumps up to $51.90 — which is absolutely ridiculous, considering this price is the pre-tax rate.

Vonage offers an “unlimited” Local and Long Distance service for $24.95 monthly which includes more than 25 features (such as Caller ID, Call Waiting, and Voicemail). VoIP.com offers the same package for $19.95 (or more than $30 less a month than Verizon). Now, the “unlimited” voice on VoIP providers tends to be around 5,000 minutes a month or so. If you go over it, expect a notice.

Cellular Service ranges anywhere from $30 – $130 monthly per phone depending on the options you choose. By the time you reach the high end, you’re generally getting unlimited minutes and data (mobile web, email, etc.).

For a typical household, VoIP remains a very cost-effective telephone solution; although you must remember that without good (and we mean good), high-speed Internet, your VoIP will be unusable. Many local phone companies offer a “dial tone only” line for less than $15.00 monthly. With the use of VoIP and a dial-tone only landline, you can still save more than $150.00 yearly while providing your family a reliable method of calling during emergencies and power outages.

As Billy Joel would say, it comes down to reality, and that’s fine with me. If you need to tighten the belt, VoIP can help. However if you can get by without having high speed Internet and don’t mind using the mobile phone all the time, you may be fine with becoming a “wireless only” household. Or you may not care about money whatsoever and decide to have all three maxed out.

Either way, when you do realize the benefit of VoIP and embrace the force, we’re here to help.

Look. Its Kevin Martin of the FCC. Hi Kevin.

The US Congress Committee on Energy and Commerce released a scathing report of the FCC (Federal Communications Commission) under Chairman Kevin Martin. The report, titled “Deception and Distrust: The Federal Communications System Under Chairman Kevin J. Martin” (sounds like a Lifetime movie), harshly criticizes both the FCC and Kevin Martin. Although, from the title alone, you had to have guessed the report wasn’t going to be flattering.

The committee found (among other things):

• FCC Chairman Kevin Martin manipulated, withheld, or suppressed data, reports, and information from other FCC commissioners and Congress.
• Important Commission matters have not been handled in an open and transparent manner; raising suspicions on unfair treatment.
• The Commission has failed to carry out important responsibilities regarding oversight of the Telecommunications Relay Service Fund (allowing customers to be overcharged while companies are overcompensated).
• FCC Chairman Kevin Martin’s “heavy-handed” management style has created distrust, suspicion, and turmoil among the five current Commissioners.
• Commission staff have not been efficiently managed.

The report uses such statements as “classic fleecing of America” (regarding overcharging customers), “undermined the ability of the FCC to accomplish its mission” (describing Martin’s management style), and “Chairman Martin’s manipulation of the Second Report calls into question the reliability of telecommunications information and analysis provided by the FCC to Congress.” Ouch.

The investigation was launched after allegations were received from FCC employees (current and former), other FCC Commissioners, and telecom reps. The Bi-Partisan Congressional committee launched the investigation in January, however did not hold the typically expected hearings “due to the climate of fear that pervades the FCC.” Apparently, witnesses were too scared to publicly testify.

The FCC provides authoritative rule making over VoIP, telecommunications (such as Cable, Wireless Phones, Telephones, POTS, etc.), television, and almost some part of electronic life that we touch daily.

More reading:

• Download the Report (PDF)
• CNET.com: Congressional report: FCC chair abused power
• Associated Press: House report finds leadership breakdown at FCC

Traditional POTS providers such as at&t and Verizon will notice decreasing numbers of residential customers while stand alone VoIP providers (such as Vonage, Packet 8, and voip.com), Cable companies, and wireless providers pick up the slack.

Well, we have only 2 comments:

1. No Star Wars or Dungeons & Dragons references?
2. Two Words: Ben Affleck

Seriously, it’s a nice post. And if you liked it, please check out:

• What is a VoIP?
• What is POTS?
• What is DTMF?
• How does 911 work with VoIP?
• and the opinion piece, Mommy, What’s a Phone Cord?

For more on the deployment, check out our VoIP Tech Chat article.

The Tennessean posted today that at&t is raising the rates of basic phone service and calling features in the hopes of increasing profits. Although basic phone service would increase by “pennies,” other features would see a much more significant increase. For example, Caller ID and Call Forwarding would increase about a dollar and bundle packs would increase about 2 dollars. Oh, and at&t reported a profit of 3.46 billion dollars — in just the first quarter.

So now, you’re a landline service provider. People are dropping landline service for VoIP and Wireless Only plans. You’re making an average of just over a billion dollars a month profit. You want that number to increase. So, you raise rates? Wouldn’t that make people jump ship even more? So, instead of making your services more attractive, you’re going to jack up prices on your loyal customers who are chosing to stay with you despite cheaper alternatives. Nice.

We love this quote:

A spokeswoman for AT&T, Dawn Benton, said the company’s decision to raise rates had nothing to do with the loss of landlines.

“Our focus is to bring greater value to our plans: a unified portfolio, greater consistency and simpler pricing right up front,” she said in a statement. “Even with these changes, we still offer some of the best values and offers in the market today.”

VoIP providers like voip.com, Vonage, and Packet8 bundle residential service and include more features than you’ll ever need. Oh, and most plans include long distance, too. Someone needs to help Dawn Benton find a clue.

Keynote determined (based on testing providers such as Packet8, Vonage, Verizon VoiceWing, Lingo, etc.) that most VoIP users can expect “merely tolerable” telephone service when compared to an at&t POTS line.

One of the VoIP providers tested failed to achieve any calls with an MOS score of 4.0 or better (ouch).

Why did Voip Tech Chat wait more than a month to post this news? Patrick and Fred were too busy talking about Lifelock and Ben Affleck movies. 

Oh, and Asterisk Voip News posted that a cool new IP Phone with a huge video screen is coming soon.

Now, remember of course, that Verizon originates from the traditional POTS provider, Bell Atlantic. Back in the 80’s (1983 to be exact), when there was one big phone company called Bell, the US government decided that Americans would benefit from 7 companies instead of 1 big one. The 7 smaller phone companies, or “Baby Bells” were to handle local phone service and allow other companies to handle long distance.

With that historical digression, please remember that Verizon essential developed from this split; therefore sometimes still thinks like a traditional POTS provider.

How so you ask?

Well, the discount sounds great — but the big phone companies just don’t know how to provide something without conditions. If you want the fastest DSL or FiOS plans, you get no discount. The discount will only be offered towards DSL plans of 3 mbps and FiOS plans of 20 mbps.

Still, if you don’t want the best of the best, saving up to $12 a month still adds up to a nice deal. Maybe they should read our Wireless Only article to learn more about Wireless Only customers.

Voip Trunking provides a method of connecting POTS equipment or conventional telephone equipment with a Voice over Internet (VoIP) network. Vonage, Voip.com, and Packet8 already ship out phones and adapters (or ATAs) for their residential services. These ATAs are essentially VoIP Trunks.

Many companies already offer Business VoIP service to “any” device. For example, both Voip.com and VoicePulse (along with many other providers) offer a BYOD (bring your own device) business service; allowing a user to connect their current equipment to the provider’s network (Voip.com also provides BYOD residential service). Packet 8 however seems to truly embrace the non-voip office. 

Most other providers require some knowledge or existing experience with integration. BYOD plans basically are geared towards a user who knows what they want and can either integrate the service themselves or hire a consultant for assistance. Here’s where Packet 8’s offering differs. VoIP-News reports that Packet 8 will be including installation of the Trunking service to the customer’s system. Of course, this is not free. With installation costs of $1,500.00 (including the internet voip trunk gateway), it may be cheaper to get a consultant to integrate a different provider.

However, for Packet 8 to sell the installation, device, and connectivity as one package — well, that’s a really good idea for a non-tech savvy office.

Among the many questions asked by CNET.com were:

• Does your service keep server-based logs of the content of communications, meaning what a particular user sent and received?
• Have you ever received a subpoena, court order or other law enforcement request asking you to turn over information about a user’s IM account?
• If so, how many law enforcement requests have you received?
• Have you ever received a subpoena, court order or other law enforcement request asking you to perform a live interception or wiretap, meaning the contents of your users’ communications would be instantly forwarded to law enforcement?

The standard answer to these questions was the ol’ standard that communication with Law Enforcement is not discussed — aka, we fully comply. Skype though gets huge points from us for many reasons.

First, they don’t do the whole duck and cover non-answer answer. Skype actually answers a question completely and honestly. We love it! For example, when Skype was asked if they ever received subpoenas from law enforcement, they said:

Yes. We co-operate with law enforcement agencies as much as is legally and technically possible

They don’t say they won’t discuss these issues, they flat out say, BAM! We get a subpoena and we do whatever we can. An honest answer makes us trust a company a heck of a lot more than an evasive one.

Now, here’s the VoIP aspect. When asked if they had ever received a subpoena to wiretap or intercept communications, Skype said:

We have not received any subpoenas or court orders asking us to perform a live interception or wiretap of Skype-to-Skype communications. In any event, because of Skype’s peer-to-peer architecture and encryption techniques, Skype would not be able to comply with such a request.

Wow. So, this means that by using peer-to-peer, skype conversations (according to skype at least) are made outside their control and not able to be trapped by their servers for interception. Skype has always claimed that calls and instant messages between skype users were encrypted using AES 256-bit encryption. 

Now, we should mention here, if you’re using Skype to call a regular POTS line, your calls will not be encrypted. This means they will be susceptible to wiretapping.