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VoIP ads promise low rates that are the same from month to month, or features and flexibility that regular phone service can't readily match. With VoIP, rates typically range from $20 to $40 per month for unlimited local and long-distance calling; you also don't have to be tied to the area code in your locality, and can choose a different one if you wish. VoIP was explored in depth in the January 2006 issue of Consumer Reports.
Before signing up for VoIP, you may want to consider the following:
- A high- speed broadband connection is required. A broadband connection means you access the Internet via DSL or a cable modem. If you do not already have such a connection, you will have to incur the additional expense in order to subscribe to VoIP.
- 911 not yet fully implemented. Beginning in November 2005, VoIP providers were supposed to provide "E-911" emergency services to their customers. Such services are now available, with few exceptions.
- The phone won't work during a power outage. You won't be able to use the phone during power outages without back up power (a corded phone connected to the telephone network will continue to work without power). The FCC maintains updated information on VoIP and 911.
- VoIP does not have to adhere to the same quality of service and consumer protection standards as your home phone. State laws and regulations set standards for service, such as the maximum number of seconds before calls connect and times to respond to customer service calls, etc, VoIP is not. For example, a VoIP phone will not work if your computer and/or Internet connection are not working. Other rules apply to billing, deposits and marketing of wireline phones, but not to VoIP.
- VoIP is not yet required to meet the same disability access standards as other phone service. Therefore VoIP may not be an option at all for callers with disabilities.
- VoIP requires 10-digit dialing and may let you choose your own area code. In some parts of the country, 10 digit dialing of local calls is now required, but in many others areas it is not. With VoIP you will have to dial an area code to call your neighbor. Some providers will also let you choose an out-of-area code for your VoIP service. But if you do that, then your neighbors will have to dial long distance to reach you.
- VoIP's price advantage may not last forever. At present, VoIP providers avoid paying many of the taxes and fees imposed on traditional phone companies. However, that price advantage may disappear as Congress and federal regulators determine whether VoIP should remain exempt from fess and taxes paid by other phone companies.
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