VOIP Explained

Or How To Make Phone Calls To Anywhere In The World For Free

© 2010 Max Lent

Imagine, if you will, canceling your wired telephone service.  Imagine replacing it by making telephone calls over the Internet.  It's not as impossible as it sounds.  In fact, thousands, perhaps tens of thousands of people have already made the leap.  I personally know of people who have canceled their wired telephone service and only use their cell phones for their telephony needs.  As the cost per minute of cell phone usage drops to almost nothing for most users, there is little need for plain old telephone service (POTS).

The obvious question is why would you want to give up your POTS for Internet telephony, also called voice over IP (VOIP)?  Cost is probably the biggest draw.  If you are paying $20+ dollars per month for POTS, an additional $50+/ month for long distance service, and an additional $40+/ month for Internet access, you are a prime candidate for VOIP.  If you additionally spend $50+/month for overseas long distance calls, you probably need VOIP right now.  If you are already paying for broadband Internet access using VOIP will help you leverage that cost by making VOIP calls.

Corporations are already ahead of the curve with VOIP.  Cisco is already helping businesses communicate less expensively using VOIP.  The same kind of technology enabling businesses to leverage the Internet to make phone calls is now available to individuals and small businesses.

The next question you may ask is how technically difficult is it to set up a VOIP connection?  Not very.  I was able to open the box containing my SIPphone and make an Internet phone call in less than 15 minutes. 

How expensive is it to use VOIP?  There is no monthly fee, no long distance charges, and no per minute charges.  Once you buy the hardware (a phone or adapter from SIPphone costs about $80) that's the end of your out of pocket expenses.

Is this too good to be true?  No, but there are some requirements and limitations.  You will need Internet access with ISDN or better speed.  Digital Subscriber Line (DSL) and cable modem access both work fine.  You will need a router.  A router is an inexpensive device that permits sharing your Internet connection between devices.  These are also easy to install and set up and cost as little as $50.  If you have more than one computer connected to your Internet connection, you may already have a router or it may be part of your cable modem.  The person at the other end will also have to have a similar VOIP set up.

Making Vonage calls from the Internet to POTS telephones will require that you, in most cases, sign up for a service.   is an example of such a service.  Another way to make calls to POTS telephones from the Internet is to use widely available calling cards.  Your VOIP phone does permit you to call 800 telephone numbers in the U.S.  This also means that people calling the U.S. from overseas can use their VOIP telephones to call 800 number calling card access numbers to call POTS telephone numbers within the U.S. at U.S. rates of only a few cents per minute.  There are a few countries attempting to block such calls.

If you own a Pocket PC you may be asking yourself if you can use your Pocket PC to make VOIP calls from wireless hotspots.  The answer is yes you can.  We will be covering that topic and much more in a book two colleagues and I are writing. 

There is no question that the best place to visit on the Web for information about VOIP is Jeff Pulver's FreeWorld DialUp.  Anyone successfully using VOIP today owes Jeff a big thank you for his contribution to making VOIP available to people like you and me.

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Contact Information:

Max Lent
Business and Web Consultant
812 Coventry Drive, Webster, NY 14580
Telephone: 585-670-9707