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Talk is Cheap; Making Calls Over the Internet Used to Mean Being Tied to Your Computer

Posted on: Wednesday, 31 January 2007, 03:00 CST

By Simon Usborne and Rebecca Armstrong

Fancy catching up with a family member in Australia? How about having a long chat with a mate in China? Chances are, making a call to either will make your phone bill rocket. But contacting friends on the other side of the earth needn't cost it - in fact, it can be free, thanks to VoIP.

Voice over Internet Protocol is a way of making free phone calls over the internet that has been around for some time, but new developments in the technology used to connect callers look set to change the way we communicate. VoIP allows you to make calls over a data network such as the internet. VoIP converts the signal from your telephone into one that is capable of travelling over the internet, then converts it back at the other end so you can speak for free to anyone with a VoIP phone number.

When the online entrepreneurs behind the music file-sharing service Kazaa launched Skype - the best known VoIP service - in 2003, it threatened to do away with traditional landlines. Anyone with broadband internet and a microphone could download their free software and speak to other Skype users for free, and to landline numbers for almost nothing. The service quickly caught on and today has more than 171 million registered users. But for many, the service proved frustrating. Picture the scene: you fancy a chat with your sister in Sydney. First you switch on your computer, then you open the Skype console and check if she's online. You click on her and hit dial. But she's gone to make a cup of tea. You try again a few minutes later.

This time she picks up and you grapple with your unwieldy headset. But there's a delay and conversation runs aground so you think, "forget it", pick up your house phone and get her straight away. It's costing loads, but finally you're talking.

Those were the bad old days when, as early adopter Michael Love, 53, puts it, some calls abroad were great quality, but others were "like shouting in a bucket". So what's changed? A new generation of phones has hit the market and the big guns of the telecoms industry have embraced and invested in technology they feared would put them out of business.

"We don't see VoIP as a threat but as a huge opportunity and a major differentiation of our service," says Adam Liver-sage of BT. "BT has over one million VoIP customers in the UK using our Home Hub and PC phones. With the move to providing TV, mobile phone, internet and landline services in bundles, we believe all services will go over broadband."

And it's not about only calling acquaintances with VoIP handsets - many service providers now offer cheap calls using VoIP technology to normal landlines and mobile phones. But not everyone is convinced VoIP is poised to take over from traditional mobile phone lines. Ben Wood, a director at the UK based telecoms research firm CCS Insight is underwhelmed. "I don't think there is a mass UK market for VoIP yet," he says. "It's appealing and sexy, but in reality mobile users in the UK have huge bundles of free minutes. They could make the switch but then they have to register, find a hotspot, work out how to connect and somehow transfer their address book. Is it really worth it?"

However, he thinks VoIP will appeal to professionals. "For business users it's immensely attractive. I'm talking to you from Dubai and if I was making the call it would be costing me a fortune. But my hotel has WiFi hotspots. If I could use those as I travel, I could save thousands." But whether you use VoIP for business or pleasure, if your colleagues, family and friends have VoIP, talk isn't just cheap, it's free. Which is definitely worth chatting about.

BT Home Hub

What is it?

A new broadband router thandles all manner of broadband capabilities, including high-speed internet access, broadband phone calls and WiFi. A similar service is available from Wanadoo.

Why should I use it?

This package brings together the internet, VoIP, TV (with the BT Vision set-top box) and with the Home Hub, users get 250 WiFi minutes a month. This means they can get online while out and about in WiFi hotspots, such as cafes, airports and hotels.

How much is it?

Hub and matching phone are [pound]89.99 when you go for Option 3, the service that includes cheap Broadband Talk online calls. Evening and weekend calls to UK landlines are free and calls to mobiles or abroad are cheaper than standard calls from a landline. The package costs [pound]20.95 for the first six months, then [pound]37.99 per month after that.

USB phone for PC

What is it?

Free user-to-user phone calls using a PC with a broadband connection and a VoIP USB handset or headset (or, if your computer has a microphone port, just using a pair of headphones). Users download software from their service provider of choice (such as Skype), receive a user ID and start making calls through their computer.

Why should I use it?

VoIP allows users to travel anywhere in the world and still make and receive phone calls to other users for free. However, many VoIP service providers don't let users make emergency calls and the method is vulnerable to power cuts.

How much does it cost?

Handsets cost from [pound]13 for a plug-in phone, but cordless ones can cost [pound]130. Headsets cost from [pound]6.95 for the basic model, but can be up to [pound]79.95. Calls to other VoIP phones are free. Some providers offer calls to landlines and mobiles for a relatively small cost.

BT Fusion

What is it?

A conventional mobile phone that connects automatically to WiFi hotspots in the home or on the move, making use of cheaper rates using VoIP when it does so. Its advantage over a conventional WiFi- enabled mobile ( see box, below) is that it routes to VoIP via WiFi automatically, rather than manually. BT's Fusion WiFi is available now. Motorola and Sony Ericsson have announced their intention to support VoIP in mobile handsets.

Why should I use it?

With BT's Fusion package, calls made using VoIP/WiFi are four times as cheap as calls made using the standard mobile network.

How much is it?

From [pound]19 per month for 100 minutes of standard calls or 400 minutes of VoIP calls.

USB Dongle

What is it?

A dongle is a small hardware device that connects to a computer to authenticate a piece of software. The Von-age V-Phone, a little orange dongle, comes with Vonage Talk software preloaded. Plug the V- Phone into a USB port, insert the earpiece microphone into the side of the V-Phone and calls can be made and received instantly.

Why should I use it?

Instead of using one computer to make VoIP calls, the V-phone lets users make calls from any PC, so is a great idea for people using internet cafes or friends' computers. Once the V-phone is removed, all important contact information goes with it. The V- Phone also works as a storage device with 250mb of memory, and is small enough to put on a keyring.

How much does it cost?

[pound]19.99 for the V-Phone, calls from free.

WiFi-enabled mobile

What is it?

Some mobiles with WiFi can be used to make VoIP calls. Users can bypass their mobile phone network and connect to the internet using the WiFi-based network instead when in range of a hotspot.

Why should I use it?

Rather than buying a whole new phone, users with powerful enough mobiles can take advantage of VoIP. Flat-rate costs for

going online with mobiles via WiFi also mean that talking over the web is no longer so prohibitively expensive. The only potential problem is finding enough WiFi hot spots to make mobile VoIP calls viable.

How much is it?

It depends on your contract, so check with your mobile phone operator before racking up online costs.

Source: Independent, The; London (UK)

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