Voice over IP allows it's users to make cheap or even free calls to phones by using the existing internet infrastructure to route telephone calls. You can use a normal house-hold telephone, or a headset and microphone attached to your computer. We look at the ins and outs of various ways of using VOIP to save you money.

Before we start, we should say VOIP is a relatively new thing and VOIP providers are notorious for system crashes and poor quality lines. We'd suggest you don't remove your existing phone line (if you have wireless or fibre internet access in you area) because you never know when you'll need to make an emergency call, such as police or an ambulance.

VOIP Providers

If you want to make VOIP calls from your router or computer you'll need a VOIP provider. You tell your router or computer to forward VOIP calls to your VOIP provider who then forwards the call to the recipient.

Computer to computer VOIP is the cheapest solution. You can run VOIP software on your PC and talk to other PC VOIP software users for free. A typical example of this is Skype. With a Skype account you can call other Skype users for free.

VOIP Providers such as Skype act as a kind of telephone gateway between the internet and normal phone lines. Skype will ley you connect and receive calls from the internet and like most VOIP providers the let you make calls to other people who run VOIP on their PCs (like you) for FREE. For many people who make regular calls to the same number this can be a very cheap solution.

If you want to make VOIP calls to normal phones then you usually need to purchase a VOIP account and some "minutes". Skype charges about   €0.16 cents per minute, you buy a pack of minutes and can make calls when you please. When you run low you can purchase more minutes to top up your account.

Some VOIP providers will give you a small piece of hardware that you plug into your broadband connection and your normal phone to make VOIP calls. In Australia Engin charge 3.5 cents per minute international and 27 cents a minute for local calls with a monthly fee of $9.95 for this type of setup.

Incoming VOIP Number

If you want to have people call your VOIP number from normal phones then you need to purchase this an incoming VOIP number. Skype charges € 30 euros to give you an incoming phone number that can be called from any normal phone around the world for 12 months. People you give your VOIP number to can call you on this number to be connected through to the phone you have plugged into your router or computer.

Obviously your VOIP phone number will be different to your normal fixed line phone number but people calling your VOIP number will usually only pay the cost of a local call to a VOIP point of presence in their area and then be routed over the internet to your phone. The caller can then to enjoy the benefits of cheap VOIP as well because their call will usually only be a local call even if they are in another country.

If you've got children who're always calling their friends for hours on end and blowing your phone bill out of the water then getting them to use VOIP will save you thousands.  For $30-$50 a month (in Australia) you can buy enough broadband for them to call their friends permanently. It also frees up the phone-line.

VOIP Hardware

There are numerous VOIP hardware manufacturers these days so finding the VOIP solution that is right for you is just a matter of looking around.

Headphones
If you want to go the cheap way or test out the quality of VOIP before you invest much cash look at buying a headset and microphone. Make sure you grab a microphone that is attached to the headset in a hands free fashion. This will let you use the PC, drink coffee and gesture wildly at people near by while you're on the phone.

If you're going to be seated in front of the PC to make calls then this really is the easiest way to go. Microphones that are desk mounted aren't usually very powerful and you'll find that unless you grab a really good quality desk mounted microphone (more than $100) then the other person will have problems hearing you. Headset mounted microphones are usually very cheap and quite effective for the purposes of a phone call.

If you can't find a headset for a reasonable price at your local Dicksmith's or Radio shack, then look online at Amazon or EBay. There are many different types around but we'd recommend the cheap ones, they do the job and won't break the piggy-bank.

USB VOIP Phones

You can also purchase USB Phones. These operate just like a headset and microphone but they also provide a keypad. You can set up your VOIP software so that you can dial a VOIP number straight into the USB phone and the computer will establish the connection for you, you won't have to touch the keyboard. This is particularly handy if the computer is in use and is fairly tactile in that it works just like a normal phone (no extra training for mom or dad!)

Obviously when it comes to making phone calls it's handy not to have to boot up your PC just to make or receive a telephone call and in an emergency when you want to make a call you won't want to be relying on Windows to work.

VOIP routers

Using a normal phone or even a portable phone will allow you to make phone calls without worrying about the PC being on or if someone's using the PC to play games etc.. Most voip routers will let you plug in 2 phones so you can have a second VOIP line too.

VOIP Servers

For the more technocratic you can also run your own VOIP server just like Skype. You'll need to be pretty proficient in Linux to install a VOIP server such as Asterix but you'll be able to issue your own phone numbers to people who are using VOIP. This could build a new standard for community VOIP switchboards.

VOIP Enabled Phones

You can also buy VOIP enabled phones that do the voip for you. They usually have a network plug in the back which you can plug straight into your router Whilst these are a great all-in-one solution we recommend getting a VOIP enabled router and using a normal phone instead. this giveyou the flexibility to get any phone and use it with VOIP. If you've got old phones lying around you can use those or purchase a nice protabel unit that will give you the freedom to make VOIP calls anywhere round your house.

VOIP Mobiles

Some newer mobile phone will do VOIP, just configure your mobile so that when you roam into range of a WiFi access point your phone will automatically switch over and use the WiFi for VOIP. This is a great option if you want to use one phone at home and when you're out and about. Many business travellers are getting into this setup because they can make far cheaper calls from inteernet cafes. A word of caution, please read our article about the security implications of VOIP and WiFI

Calling Cards

A discussion of VOIP could not be complete without mentioning calling cards. Calling card providers basically buy huge chunks of "minutes" or talk time than then sell them off in smaller amounts. You buy a calling card, call their local point of presence (usually a local call) then dial the number you wish to be connected to. The calling card provider handles all the connectivity at either end of the VOIP call.

Many business Travellers will use their normal roaming mobile to receive SMS's and then call the person back using a calling card.

Calling cards are usually ridiculously cheap, if you're thinking of going VOIP make sure you check out the benefits of calling cards.

 

In this article we've looked at various different methods for getting access to the cost benefits of VOIP from the cheaper headphone and PC combination to the more expensive VOIP-enabled mobile phones.

If you're looking at using VOIP with a WiFI access point we recommend you read are article about the security implications of VOIP with WiFi

Search for a VOIP Provider in your area
http://www.myvoipprovider.com/

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