Complete Guide to VoIP Services

VoIP comes in two basic flavors: hardware-based services that use a converter box between your broadband Internet router and a regular touchtone phone, and software-based services that require a computer. Major hardware VoIP services such as those from Vonage and EarthLink fall into the first category, and are detailed on our plan comparison page. The software-based services, like GloPhone and GoogleTalk, are user-friendly descendants of the original hacker-level VoIP packages. These PC-based systems handle call-processing duties on your internet-connected computer instead of on a separate dedicated box or phone, and most lack complete call-and-receive interconnect services to public phone networks. You can use your computer's built-in speakers and microphone, or inexpensive USB headsets and handsets.

Skype is in a category all its own, offering both free PC-based software and dedicated VoIP handsets with the software built in so you don't need a PC to make calls. With Skype, calling to other Skype users is free, while the ability to receive calls from and make calls to outside phone numbers (Skype In/Skype Out) is available for a fee.

Software-Based VoIP

PC-based packages have greatly improved in sound quality over the years (especially if you have broadband access and a fast PC), but some are still not at the same level of quality or ease of use as the hardware services, so you will want to try before you buy. Some (such as the new GoogleTalk and Yahoo Messenger betas) only let you talk to other people using the same software, while others, such as Skype and GloPhone, also let you make and receive calls from regular phone users at extra cost. In addition, your PC must be on with the software open unless you use a dedicated handset, such as those available from Skype.

Software-based VoIP services like GoogleTalk and Yahoo Messenger generally require computers with compatible programs at both ends to place a call, as well as a broadband connection in between. Quality used to be poor compared to landlines, with a walkie-talkie feel, but has greatly improved in the last few years to near copper quality.

Many software-based VoIP packages are free or very affordable, however, and there are usually no call charges unless you want to be able to talk to regular landlines or cell phones. Calls to other VoIP users are usually free. The leader by far is Skype, with its SkypeIn and SkypeOut services bridging the gap to landlines. SkypeIn and GloPhone provide you with actual phone numbers you can give to anyone.

Hardware-Based VoIP

Hardware-based services have brought a semblance of quality and reliability to the VoIP market, attracting the big phone and cable carriers. To place a hardware-based VoIP call, you must have a VoIP converter box between your phone and broadband internet connection.

While PC-based VoIP software will continue to play a major role due to its near-free quality, most big cable and phone carriers offer hardware-based VoIP services in attractive package deals with their other services, on one monthly bill. Hardware-based systems usually offer higher voice quality, better reliability, and more features, especially those that relate to landline usage, such as white-page listings and 911 access. These systems allow you to plug a standard phone into a converter box, which in turn connects to your broadband modem or home router. Anyone can receive a call placed this way; no special software or converter box is required at the recipient end.

VoIP On the Road

One of VoIP's coolest features is that it is location-independent. When you move house, you can take your VoIP phone adapter with you, plug it into the broadband connection at your new home, and continue calling without interruption. You should notify your provider of your address change, of course, for billing and E911 purposes, but there will be no interruption of service or change to your phone number. That's true portability.

That same portability lets you take VoIP on the road when you travel. You can actually take your home phone adapter with you and plug it into any broadband connection, such as that in a hotel, but that would leave your home with phone service for the rest of the family. So what we recommend instead is to choose a plan with extra virtual numbers, or soft-phone service that work through your computer for business travel, and bring along a USB handset.

Soft-phone service can be added to some residential hardware-based VoIP plans, or you can sign up for one of the software-only providers like Skype and GoogleTalk. Vonage offers a software-based version of its service that also works through Boingo Wi-Fi hotpots. GloPhone's prepaid VoIP calling card plans work well for this purpose. You pay $59.95 for 2000 minutes that expire in one year. Since almost all VoIP plans offer multiple numbers and call forwarding, you have complete flexibility in having calls follow you or simply using a second number for business and travel.

Of course, software-based VoIP on the road works best for outgoing calls, since you must have your computer on and VoIP software open to receive calls unless you have one of the new VoWi-Fi handsets from Skype and others. Skype offers a version that works on Pocket PCs, so you can leave the laptop at home. Whether you're using a notebook or handheld, you'll still need a broadband connection, which you can get at a Wi-Fi hotspot, or with an EDGE/HSDPA or EV-DO high-speed cellular data card or PDA. If you are using cellular broadband access for VoIP, be sure you have an unlimited data plan, or you may run up a huge bill.