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Voice over Internet Protocol (VoIP)

You have probably seen the ads: If you have a broadband connection for your computer, you could be making long distance telephone calls using VoIP at greatly reduced rates or even free. So why not sign up today?

VoIP is a new technology that offers many interesting opportunities and value for those people whose needs match what it offers.

The following consumer information covers many consumer topics related to VoIP including:

 

Some of the potential benefits of VoIP

  • According to VoIP providers, VoIP can save consumers from 40 percent to 60 percent on their monthly phone bill.

  • VoIP, which can easily incorporate your computer monitor and keyboard, offers easier access to telephone services for the disabled.

  • VoIP users can easily - and cheaply - conference with large groups.

  • Once you have a VoIP account, you can place VoIP calls anywhere there is a fast Internet connection, and incoming calls will ring your home phone number no matter where you have plugged in the actual phone.

  • Voice mail can be downloaded as email, read online and filed and kept as needed.

But VoIP differs in many ways from traditional landline service, and even from today's wireless telephone options in ways that may surprise you. When evaluating if VoIP is right for you, here are some factors to consider.

Consumer Protection

Following an FCC ruling in October, 2004, VoIP is essentially unregulated by the FCC and state authority to regulate VoIP service has been challenged in federal courts. This means consumers will have limited recourse should services provided for VoIP not live up to the contract terms.

To Protect Yourself

Ask prospective VoIP providers how they handle billing disputes, service repairs and disconnections, and whether they will follow state rules regarding such issues. If the company representative says the company will abide by such rules, ask for that statement in writing.

No Enhanced 911?

The service to call for emergency help that VoIP providers call “911" lacks many of the enhanced features of basic 911 or enhanced 911 (or “E911") service. Enhanced 911 is a system that allows emergency dispatchers to determine your location automatically when you dial 911 using a conventional phone line. VoIP calls do not transmit this location information. This means that if you place a 911 call and can't communicate effectively, the dispatcher will not know your geographic location. Nor would an emergency dispatcher be able to call you back if you hang up or inadvertently end the connection.

Perhaps the most significant concern is that VoIP “911" service relies upon the user to enter non-911 telephone numbers for emergency service providers that serve your location. If you forget to change the local emergency numbers when you use your VoIP service at a different location, the emergency call taker may have no idea where you are and may be unable to immediately dispatch an emergency service to help you. VoIP providers and national organizations representing emergency service dispatchers are working on solutions to address this situation but you should understand the emergency service calling limitations and the responsibilities the current arrangement places upon you.

To Protect Yourself:

Ask the VoIP providers you’re considering if they provide 911, Enhanced 911, and if not, what their plans are for providing the service. Recognize that the emergency calling arrangements the VoIP provider offers is not the same as those provided on a conventional phone line. Decide whether you are comfortable with the differences. If you sign up with a company that does not provide 911, consider labeling the VoIP phone with a sticker that says “This phone does not reach 911,” or “This phone does not reach Enhanced 911,” as well as maintaining a land line for E-911 service.

No Power, No Phone

VoIP calls can’t be made during a power outage without back-up power.

To Protect Yourself

The same is true of calls you may attempt to make over a conventional phone line using a cordless phone. However, if you want to ensure you have telephone access when there is no electricity, you will have to maintain a land line with a traditional phone that is connected to the desk or wall phone (not a cordless phone), or back-up power.

No Local Area Code?

VoIP numbers are not location-specific, so you may have to dial 1 + area code to make every call. Even though you live in Vermont, you may have an area code for another state or for a city in another state. And even if you have a Vermont area code, because VoIP providers don’t have access to numbers in every locality, you could find that your neighbors have to place a long distance call to reach you.

To Protect Yourself

Ask prospective carriers what area code you are likely to be assigned or if you have a choice of area codes.

Fax Not Available

Only a few VoIP providers can handle faxes coming across their lines.

To Protect Yourself

Ask prospective providers about their ability to handle faxes. If you wish to receive faxes, you may need to maintain a traditional land-line phone.

Additional Equipment Needed

There may be additional costs to getting VoIP that are not included in the monthly fees. You will need an adapter that converts your voice to data, and you may need other hardware, such as a special router.

To Protect Yourself

Ask prospective providers what equipment is included in their fees, and if there are additional costs you will incur for equipment if you sign up for services with them.

Voice Quality Issues

VoIP service will only be as good as your broadband connection, and not all broadband connections are equal in quality or consistency of performance.When VoIP quality is high, the call may be very clear and sound as if the person you’re speaking to is very near. But “latency,” a type of poor quality that results when there is delay or even loss of data packets, can result in disjointed sentences that are hard to understand and make conversation difficult.

Also, downloading files on your computer while you talk on the phone may result in poor phone quality.

To Protect Yourself

If you already have a broadband connection that you are considering using for VoIP service, various websites will measure the transmission quality of your broadband connection. Keep in mind, though, that service-affecting congestion on the Internet may not always be the fault of your broadband connection. As a general matter, though, a broadband connection that is fast, and that assures a minimum data transmission speed will work better than those that do not.

Ask prospective VoIP providers about latency on their lines and the minimum data transfer speed they can promise you. Ask other VoIP users – if you know any – to describe their experiences.

Unlisted Number

VoIP phone numbers are unlisted since they are not part of the telephone company’s system. This means that friends and family won’t be able to find your telephone number. For the same reason, you may not have access to 411 directory assistance calls.

To Protect Yourself

Ask prospective providers if there is any effort to provide nationwide listings; some companies have been discussing this option. Also ask if the provider has any plans for directory assistance for their customers' numbers.

Taking your phone number with you

Most VoIP providers offer you a choice of phone numbers to use with VoIP service, and you may be able to "port" your current number, i.e. take your current phone number with you to use with the VoIP service. But VoIP providers are not presently under the same obligation as conventional phone companies to allow you to subsequently port your VoIP number to another carrier. This could mean you will have to get a new number should you decide to return to traditional or cellular phone service.

Also, bear in mind that, if you plan to use a DSL connection (i.e. the type of connection that a conventional telephone company usually offers), your phone company will probably require you to continue purchasing conventional phone service as well. Since your phone number can be assigned to only one service provider at a time, you would probably need to select a new, separate phone number exclusively for use with your VoIP account.

To Protect Yourself

Ask prospective providers if they would allow you to transfer your VoIP phone number to another phone company if you choose to stop purchasing their service. Also, if you will be using a DSL broadband connection, recognize that you may need to maintain your current phone service and have separate numbers for use with your current phone line and your new VoIP line.

Questions and problems

If you are having a problem with a VoIP service provider, we can take your complaint and see if we can provide informal assistance, but state jurisdiction over VoIP is limited. For most VoIP complaints, we recommend you contact the FCC for assistance. That contact information and more can be found at the FCC's Consumer Facts: VoIP.If you have questions on this or other utility-related matters, contact the Department of Public Service

112 State Street, Drawer 20, Montpelier, VT 05620-2601
Phone: 802-828-2811  |  Fax: 802-828-2342  |  Consumer Hot Line: 800-622-4496