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Internet Phone Systems Are Easier to Run and Cost Less

Posted on: Friday, 3 March 2006, 12:00 CST

Question: My business is growing but our phone system is stuck in the Dark Ages. Since we're considering a complete telephone overhaul, should we switch to Internet phone service? I hear it's cheaper and the technology has really improved.

-- PHONE DEAD

Answer: The move you may want to make is to "voice over Internet protocol" or VoIP -- a system that lets you make and receive your phone calls via the Internet.

VoIP began as a curiosity a few years ago but is going mainstream. Some small businesses are even dumping their conventional phones in favor of using only VoIP, while startups are selecting Internet calling from the beginning.

But if you still haven't heard of it, don't worry. A recent Harris Interactive poll found that 87 percent of Americans still can't define VoIP and 20 percent think it's a hybrid car from Europe, while 1-in-10 believe it's a low-carb vodka.

VoIP is gaining popularity among small-business owners for good reasons:

1) It costs less than conventional business phone service -- often a lot less. No more multiple phone lines or paying extra for features like conference calling. And no more paying for calls by the minute. Most VoIP service works on a flat monthly fee, so bills are more predictable. Plus, you can make calls from anywhere as if they were local. Forget roaming charges.

2) It's less complex and easier to maintain. Your voice calls run over the same network you already use for e-mail and Web access. So instead of having to buy and maintain separate voice and data lines, you have just one system. And if you select a VoIP hosted service, you won't need any in-house equipment at all. If you add or move employees, just plug the IP phone into the data network. No need for new equipment or lines.

3) It offers more advanced features. You can select area codes other than your own for your business number and receive calls or voicemail to your laptop or IP phone while traveling, as if you were at your desk. You won't need a separate cell phone and number. In effect, VoIP lets you take your business phone system with you when you travel.

VoIP concerns

Using the Internet for phone calls isn't all roses. Audio quality still isn't perfect, but it is much better than a few years ago when VoIP calls required both people to be at a computer.

Now you can make VoIP calls with regular phones or new feature- rich, high-tech IP phones, and many users report no difference in quality. Depending on the number of employees you have, you might need additional bandwidth (a T1 line) to handle VoIP if, say, a dozen or more people will be on the phone at the same time.

Plan ahead if you intend to switch to VoIP. Find out if your current phone number can be switched to VoIP. You may want to keep a conventional phone line as a backup, and also to assure your business a listing in the local phone book. If power goes out, VoIP service can go down, so consider a power backup as well.

The lack of 911 emergency access through VoIP has also been a concern, although that too is disappearing as VoIP service providers find ways to add this feature.

* Vonage is a leading VoIP provider. The firm has a $50/month Small Business Unlimited plan that includes calls to anywhere in the U.S., Canada and Puerto Rico, along with voice mail, a dedicated fax line at no additional cost and many other features. Visit www.vonage.com or call 800-980-1455.

* Covad provides voice and data communications, including DSL, T1 and VoIP in 44 states. They will review your current service and recommend the best upgrades. Visit www.covad.com or call 877-751- 8393.

* Cisco Systems offers a full line of telecommunication products and services for small and mid-sized companies. Cisco Systems Capital also offers attractive leasing plans that can help you acquire the technology your business needs now, while still preserving your cash. Visit www.cisco.com.

* Other VoIP service providers to consider include: Quintum (www.quintum.com); Net2Phone (www.net2phone.com); Virtuoso Net Solutions (www.virtuosonetsolutions.com); and Intelecom Solutions (www.intelecomsolutions.com).

Daniel Kehrer is editor and publisher of BizBest (www.bizbest.com), which provides independent ratings and analysis of nearly 2,000 small business resources in hundreds of subject categories. Kehrer, based in Pacific Palisades, also has worked as a business journalist for 25 years. E-mail questions to: dan@bizbest.com or send them to Daniel Kehrer c/o Daily Breeze Business section, 5215 Torrance Blvd., Torrance, CA 90503-4077.

Source: Daily Breeze

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