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Cut-Rate Calling, by Way of the Net

April 8, 2004
 By DAVID POGUE 



 

EVERY time an important piece of our lives goes electronic,
much is gained, but something is lost, too. Audiophiles say
that compact discs don't sound as warm as vinyl records.
Home theaters are neat, but don't offer the communal fun of
a movie theater crowd. And no matter how efficient e-mail
may be, it can't touch the joy of receiving a handwritten
letter on fine stationery, thoughtfully composed and
concluding with the words "check enclosed." 

So stand back. The latest life component to make a radical,
Internet-driven shift is ordinary home telephone service. 

This development is annoyingly called voice-over-Internet
protocol, or VoIP, which means "calls that use the
Internet's wiring instead of the phone company's." When you
sign up, you get a little box that goes between your
existing telephone and your broadband modem (that is, your
cable modem or D.S.L. box, a requirement for most of these
services). 

At that point you can make unlimited local, regional and
long-distance calls anywhere in the United States for a
fixed fee of $20 to $40 a month (plus the cost of your
broadband Internet service, of course). Overseas calls cost
about 3 cents a minute. These figures aren't subject to
inflation by a motley assortment of tacked-on fees, either;
voice-over-Internet service is exempt from F.C.C. line
charges, state 911 surcharges, number-portability service
charges and so on. 

Now, nerds have been making PC-to-PC Internet calls for
years, using their computers' microphone and speakers. But
VoIP is different: you dial and talk using a conventional
phone. The computer doesn't even have to be on. 

The gold rush began last year when a startup called Vonage
offered a $35-a-month calling plan. Soon it was joined by a
crowd of similarly little-known services with names like
VoicePulse, Packet 8, Broadvox and VoiceGlo. 

Recently, though, some much bigger names began taking the
technology seriously: AT&T arrived on the scene last week
with an Internet-based service, CallVantage, and last fall
Cablevision, the cable TV company, began offering its own
phone service, Optimum Voice. (Technically, Optimum Voice
isn't an Internet service; it connects to the regular phone
network by cable TV wiring. A review is on Page 7.) 

Most of these services have a jaw-dropping list of
features. They include call waiting; caller ID; caller ID
blocking (your number is invisible to those you call); call
forwarding (incoming calls are automatically routed to,
say, your cellphone when you're not home); call return
(dial *69 to call back the last person who called you);
call transfer ("You'll have to ask my dad in Denver about
that; here, I'll transfer you"); automatic busy-line
redial; Do Not Disturb (all calls go directly to voice mail
during specified hours); Find Me (incoming calls try
various phone numbers until you answer); multiple ring
(incoming calls make all your various phone numbers ring at
once); three-way calling, and more. 

Now, $20 to $40 may not necessarily represent an
earth-shattering discount from your existing phone bills.
Verizon, for example, offers unlimited local and
long-distance residential phone service - the usual way,
over phone wires - with five calling features for $60 a
month (not counting all those exciting taxes and fees).
SBC, another Baby Bell, offers unlimited calling with 11
features for $55. 

Still, even $20 a month is a decent savings. Besides,
Internet phone services often use the power of the Web to
enhance those standard calling features. For example, you
can listen to your voice mail by dialing *123 on your
phone, by visiting a Web page or by sitting back and
letting your new Internet phone company send you sound
attachments by e-mail. VoIP fans love that; not only can
they save important messages forever, but they can also
retrieve their messages from anywhere in the world. 

At this point, some readers have no doubt skipped to the
Sports section. For many people, a natural reaction is:
"Why take something as simple and reliable as the telephone
and muck it up with complexity?" That's a legitimate
concern, and only the first sign that VoIP service isn't
for everybody. 

Here's another: when you have VoIP phone service, your
phone number no longer requires any relationship to your
physical location. You can choose any area code offered by
the VoIP company. It need not be the area code where you
live - in fact, it probably won't be, because at this early
stage, the VoIP companies don't have access to numbers in
every locality. You may live in Denver, but choose a Dallas
number. 

What's nice about this independence is that you can travel
with your little VoIP box. You can plug a telephone into it
anywhere you can find broadband Internet service. Your home
phone number will make the phone ring whether you're in
Roanoke, Raleigh or Russia. 

Some companies even offer a second phone number for the
same line (Vonage, VoicePulse, and Broadvox charge $5, $5
and $0 a month, respectively). So if you live in New York
(area code 212) but have relatives in Cleveland (216), you
can opt for a 216 bonus number that makes you a local call
for your relatives. 

The downside of all this, of course, is that you may wind
up being a long-distance call for people in your hometown.
Conversely, you have to dial 1 + area code for every call
you make, even to the house next door. No question, in VoIP
land, things can get very weird very fast. 

While you're contemplating the drawbacks of Internet
calling, consider this: most VoIP adapters accommodate only
one handset per line. Many Internet phone customers wind up
buying cordless phone systems that permit several handsets
to communicate with a single base station. (Some fans hire
an electrician to install the adapter where the phone lines
enter the house, so that it affects all phone jacks, but
that's a complex and iffy approach.) 

Remember, too, that you're now completely off the phone
company's grid, which has a number of ramifications. First,
your number is unlisted whether you like it or not. Second,
only a few companies let you dial 411 (Broadvox, VoicePulse
and, for a fee, Vonage) and 911 (Broadvox, Vonage and
AT&T). But in either case, if your power or Internet
service ever goes out, you'll lose your phone service too.
Most VoIP services can auto-route incoming calls to a
different number when the system goes down, but most
VOIPers keep a cellphone as a backup anyway. 

Or a basic phone-company line. That will come in handy if
you have gadgets that require a traditional analog phone
line, like a TiVo, a home alarm system or a fax machine.
(Vonage offers a fax line for $10 a month; Broadvox and
AT&T say they'll lick the fax-line problem later this
year.) 

The sound quality of VoIP calls is amazing. Every call
sounds like it's being made from downstairs. The problem is
delay (or latency, as telecom wonks call it). On Vonage,
Packet8 or Broadvox, the delay is so severe your
conversation partners come across not only as rude, because
they're constantly "interrupting" you, but also distracted,
because their timing seems off when they are reacting to
your dramatic revelations and jokes. 

The worst part, of course, is that you sound equally rude
and distracted to them. 

Using your computer to surf the Web doesn't affect the call
quality. But downloading a file can make you sound
"staticky," "watery" or "jiggly" (to use my test callees'
terms). 

Your equipment, time of day and Internet speed can affect
the severity of these problems. But in my testing, only
VoicePulse and AT&T escaped the voice-delay issue; only
Vonage and AT&T seemed exempt from the jiggly water sound
during downloads. 

All right, suppose you're still game. You have a cellphone
or backup land line, you love features and you figure you
can save hundreds of dollars a year. How do you choose an
Internet phone company? 

If you care about having an area code that matches your
current one, look for a company that offers numbers in that
area. Packet8, Vonage and Broadvox offer phone numbers in
47, 39 and 32 states, respectively, although for only a few
area codes in each state. At the opposite extreme is AT&T,
which currently offers only area codes in New Jersey and
Texas (although anyone can sign up, of course). But AT&T,
like all of these companies, intends to expand rapidly in
the coming year. 

For sheer economy, Packet8 is almost unbelievable. It
offers fewer calling features than its rivals (no speed
dial, auto-redial, or Find Me), and the voice-delay problem
can be bad. But imagine having unlimited local, regional
and long-distance calling for $20 a month. 

VoicePulse is another standout, thanks to its long list of
security features. Telemarketer blocking rejects calls from
automated dialing computers; international call blocking
prevents guests or teenagers from racking up an overseas
bill; and call filtering offers astonishing control over
who (in your address book) can call you at what hours. The
$25 monthly plan is an excellent value, although it
requires a one-year commitment after the trial period. (All
of the plans offer a money-back trial period.) 

But in terms of pure excellence, AT&T's CallVantage service
takes the cake. At $40 a month, it's the most expensive
service, but the call quality is close to perfect (no
download distortion, almost no voice delay). You get a
beautifully written manual, cheekily called "User's Guide
for the Digital Communication Revolution." All of these
services offer a real-time, Web-based call log (numbers
only), but on AT&T's, you can click on a number to see the
name of the caller, click on the voice-mail icon to hear
the message that person left for you, click on the number
to return the call, and so on. 

AT&T also offers what it's called a voice portal, a local
number that you can dial to retrieve voice mail, change
your settings (Do Not Disturb, for example) and even make
calls. You can reach the portal from any phone - a pay
phone, a cellphone or a friend's phone, for example - which
means that you can get to your voice mail or make free
calls even when you're out or when the power's out. 

Finally, AT&T's phone support center is always open. I know
that because it took until 2 a.m. to get AT&T's adapter box
working. (My home network includes an Ethernet router - an
inexpensive box that distributes a broadband Internet
signal to several computers. The adapters from most VoIP
companies plug right into an empty jack on this router. But
the AT&T, Vonage and Broadvox boxes must be installed
before the router, between it and the broadband modem.
That's a small point for most people, but a migraine
nightmare for consumers whose cable modem isn't even on the
same floor as the router. Ahem.) 

At this early moment in the birth of Internet phone
companies, you can save all kinds of money by tolerating
some quirks and peccadilloes. But as the VoIP companies
expand their area-code offerings, work the kinks out of the
voice transmissions and build up their network of
intermediary 411 and 911 call centers, the benefits of
Internet-based calling will entail fewer and fewer
compromises. 

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http://www.nytimes.com/2004/04/08/technology/circuits/08stat.html?ex=1082468120&ei=1&en=b58638ea92626cb5


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