Previously we explored the history and technology that gave rise to VOIP Telephone service (*see footnotes). Today we will examine some of the benefits and also the drawbacks of this new opportunity.

In previous articles we discovered that traditional "Landline" type phone service is set up much like a "Toll Highway". Billing starts when the "Circuit" is opened, and continues until it is closed. Just like travelling down a Tollway, the longer you stay on, and the farther you travel, the more "Toll Booths" you pass through. These toll booths are the phone company's switches, and you get charged for every one that you pass through.

In contrast, VOIP phones use "Packet" switching. As the broadband Internet connection is always open, digitized voice signals are sent to the receiver in discrete packets. The result is that no "dead air" exists on the line, as no traffic is sent when there is a lull or pause in the conversation. This allows several two-way conversations to use the same "bandwidth", or space that previously was tied up by ONE call.

This has resulted in great economy for VOIP providers who in turn pass along the savings to the end user. Most top VOIP plans run around 30 dollars a month, and the best include International calls to many countries worldwide within that base fee along with a host of features like Voice Mail, Caller ID, Call Waiting, Three-way Calling, Online Access, Etc.

While most major traditional carriers have an "all inclusive" plan, none that I know of include International calling, and most of their "basic" plans are double the cost of VOIP. In my experience, the most coveted features are also charged extra for. Add in the taxes and fees, and all of a sudden you're talking REAL money!

The other great benefit of VOIP is the ability to take your device anywhere and make calls just like you were at home. The best services are fully find-me, follow-me capable. This means that wherever you happen to be, your phone number will find you and ring at THAT location. I use mine with a Laptop, a cheap cigarette lighter a/c converter, a wireless card, and an old "princess" phone in my truck parked outside of hotspots all the time. That's huge. You can have your office in whatever hotel or airport or Starbucks you happen to be in at the moment.

Having covered most of the benefits of VOIP, let's examine some of the drawbacks. The major one is spotty 911 service availability. As the device is portable, any call to 911 will result in emergency crews being sent to the device's address of record, which is set up when you activate the VOIP device and service. Obviously this doesn't do you much good if you are in a hotel in Montana but live in Ohio.

One way around this is to change your address with your provider when you travel, and then change it back when you return home. Of course, this only works with domestic addresses, and you must remember to do it.

A better way is to ignore the issue entirely, and keep a very basic, cheap, no frills service plan with your local phone provider. This will still be cheaper by far than a full blown plan. Also, you avoid the other main issue with VOIP- Power Outages. If power goes out, or you lose your Internet Connection, you lose your phone service. Of course, you run that risk with today's cordless phones too, so it's always a good idea to have an old hardwired phone around the house, or at least a cell phone available.