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.