Cheaper Phone calls with VOIP

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Talking up an easier way to keep in touch
Bub Hub E-Newsletter, September 2007, Issue 61 - Article 4

To celebrate the relaunch of the Bub Hub VoIP group we have asked Engin for an article to provide some background on the technology, have a new member of the team that will be assisting our viewers and have an expert on call in the Forum to answer any questions this month.

The Bub Hub sees the VoIP section as another feature for our parents which can save them money, which makes things a little easier. And making things easier for parents is what we are about.

The internet is making phone calls cheaper, writes Stephen Fenech.

Making a phone call is one of those things we take for granted. We expect to be able to hear a voice at the other end of the line whenever we choose and wherever we are.

This expectation has increased dramatically since the introduction and rapid take-up of mobile handsets, now used by more than 90 per cent of Australians.

While fixed-line networks and the ever-expanding mobile networks have made this instant access possible, a much larger worldwide network is providing a convenient and cheaper alternative.

VoIP (voice over internet protocol) uses speedy broadband connections as a modern day telephone exchange to connect calls.

The concept has been around for years but as broadband take-up and the speed of the networks increase, it has now reached a point where average consumers can take advantage of the technology.

The main advantage of VoIP is cost. Internet calls between customers using the same VoIP provider are free. Internet phone companies charge as little as 10 cents for an untimed call anywhere is Australia and from two cents a minute for international calls.

Another plus is the ability to take your VoIP service wherever you go in the world as long as you have access to a broadband internet connection.

This is particularly handy when you choose a VoIP service that comes with its own phone number.

Whether you are sitting at your computer in Australia or on the other side of the world, the phone will ring when you receive a call and the person at the other end won't be able to tell the difference.

Other services now available with VoIP are voice mail, caller ID, call forwarding, three-way calling and speed dialling.

Engin CEO Ilkka Tales says the key to driving VoIP take-up is keeping it simple for the customer. "For customers, the process is substantially simpler than it was two years ago," he says.

"We've simplified the process with technology. From a consumer perspective, getting connected for a PC-to-PC type phone call was fairly confusing because no one thought of using the PC to make a phone call. Now you can just use a normal handset to get started."

MyNetFone director Rene Sugo agrees. "That's going to be the key to cracking the consumer VoIP market, especially in mum and dad territory. If anything's got more than two cables, it's a problem."

Sugo says consumer support of VoIP technology will grow faster than ever this year because of the quality of the handsets which will become available.

"I think there's a lot of really good stuff happening for the consumer and the reason that's being driven is because there are a lot more consumer items coming out, such as the handsets," he says.

Average consumers are going to be exposed to more products in a wider variety of retail outlets, says Sugo, "Last year we had VoIP in Harvey Norman, Harris Technology and those high-tech players. This year you're going to start seeing VoIP in places such as Coles, K mart, Target and Big W, "he says.

Sugo says competitive pricing will also be an important factor in encouraging customers to make the leap to VoIP.

"The retail price for getting on board is going to drop. In the first half of this year we are going to see $49 VoIP starter kits," he says.

The quality of VoIP calls has improved greatly over the past two years but, depending on the speed of your broadband connection, it may still trail slightly behind regular land lines and mobiles for reliability and voice clarity.

And as VoIP call costs are quite cheap, you'd think you could easily replace your landline if you wanted to. The catch here is that most of the broadband access in Australia is delivered by way of ADSL which utilises existing phone lines for data as well as providing bandwidth for making voice calls.

Unless you have a cable broadband connection or a very reliable wireless internet services, the bad news for the time being is you're stuck with the landline.

And while a broadband service might be the gateway to information and content, each account comes with a monthly download limit. Hooking a VoIP phone into your internet connection will count towards your download total because each call involves uploading and downloading data to make the call possible.

It is estimated a 10-15 minute VoIP call will mean a download of about 1MB. It might not sound like much but if your account has a small download limit it can add up if you make lots of VoIP calls.

Many people are under the misconception that VoIP is only for the tech-savvy, or people with a deep understanding of computers. But setting up a VoIP service is no more difficult than connecting your computer to the internet.

There are many ways users can make a VoIP call and now there will be just as many devices available to suit their particular needs.