Internet Phone Service Pros and Cons

Your Legal Rights: Internet Phone Service: Pros and Cons

Telephone technology is changing at an amazing pace. Recently an Internet-based telephone technology called Voice over Internet Protocol (“VoIP”) or “internet telephony” has become widely available. You may have seen it advertised under brand names such as “Vonage,” “AT&T CallVantage,” “Broadvoice,” and “Free World Dialup.” As shoppers consider the benefits of this new offering, it is important to keep in mind that VoIP does differ from traditional telephone service in some respects. Of most significance is access to 9-1-1 Emergency Services, actual cost vs. advertised cost, security and reliability shortcomings.

What is VoIP ?

VoIP is a method for taking analog audio signals, like the kind you hear when you talk on the phone, and turning them into digital data that can be transmitted over the Internet. The software that makes this transformation possible allows consumers to make phone calls over the Internet, skirting the local phone company and some of the costs of traditional phone service.

Access to 9-1-1.

Currently, emergency calls placed on a landline or wireless line use what is known as Enhanced 9-1-1 Emergency Service. The Enhanced 9-1-1 system routes 9-1-1 calls to the nearest 9-1-1 operator and displays for the emergency operator the caller's telephone number and location. Citizens have come to expect that this efficient service will be available from any and every telephone.

Some VoIP services currently do not provide Enhanced 9-1-1 Emergency Service. Some VoIP phones simply may not be capable of placing a 9-1-1 call. The caller-in-crisis may receive a “service not available” recording. If the call does go through, a VoIP emergency call may not be routed to the correct 9-1-1 Center. While landline and wireless 9-1-1 calls are routed to a 911 Center based on the caller's location, there have been several reported cases of VoIP emergency calls being routed to a non-emergency police station number or to a municipal government's business offices, which are typically open only from 8am to 5pm!

Recently, the Federal Communications Commission (“FCC”) ordered VoIP providers that interconnect with the traditional phone networks to obtain from each customer, prior to the initiation of service, the physical location at which the service will first be utilized. Providers of interconnected VoIP services that can be utilized from more than one physical location must provide their end users with one or more methods of updating their physical location information. VoIP providers cannot require subscribers to “opt-in” or allow subscribers to “opt-out” of 9-1-1 services. VoIP providers must also notify their customers of the limitations of their 9-1-1 service offerings. These requirements should be in place by the end of 2005.

If you are considering VoIP service, you should still ask whether the provider's offer includes Enhanced 9-1-1 Emergency Service. If the provider says it does, be sure to ask whether 9-1-1 calls are routed over the traditional 9-1-1 network.

The Real Price.

A person must subscribe to high speed internet service in order to obtain VoIP. At this time, high speed internet service costs between $25 and $60 per month plus equipment purchase or rental costs. If you do not have high speed internet already, you should factor in this expense when considering VoIP.

Consumers should review the calling plans offered by the VoIP providers. Some offer free “in-state” calling, but charge for state-to-state or international calling. Some offer free international plans that are limited to a certain number of foreign countries. Some offer “virtual numbers” which provide the user with an area code or country code different from where they actually live. These “virtual numbers” can turn long distance calls to and from friends or family in that particular area into a local call. As with any phone service, you need to do some shopping to find the right plan for you.

With changes in technology come changes in hardware. New hardware usually means that there will be shipping fees, and new hardware is often accompanied by activation or start up fees. Be sure you know any associated costs of subscribing to VoIP service before you buy. Fees and start-up costs add up.

Another “cost” that is often overlooked when a person purchases a service is the termination fee or disconnection charge associated with canceling the VoIP service as well as the broadband service used with it. Be sure to carefully read the “terms of service,” particularly if you are signing up online.

Lastly, keep in mind the time and effort it may take to resolve a dispute with the provider of the service. Heed warning signs such as difficulty reaching a person when you call the service center line or vague contact information on a company's official website. If you cannot reach a helpful individual at the time of purchase, there should be little doubt that you will encounter more roadblocks when you have a problem. It is also not yet clear which regulatory agencies will have oversight over internet-based “telephony” so you may have fewer resources for complaint resolution.

Technology, Porting and Reliability.

Because VoIP may travel on the public Internet, it may be less “secure” than traditional landline service. In January 2005, the National Institute of Standards and Technology released a report called “Security Considerations for Voice over IP Systems.” The report, though geared toward businesses and government entities, cautions users about privacy and security when converting to VoIP products. Consumers should ask questions about products that they might need to protect their home computer system and their information—including the price of these products! If you want to keep your current telephone number when you switch to a new wireline or cell phone provider, the law requires that your old phone company let you keep your number. However, a VoIP provider may have no legal obligation to let you keep your number should you switch. If you want to keep your number, use caution before changing to a VoIP provider. Be sure to find out the VoIP provider's policy. You may have to leave the number behind if you switch again.

Finally, unlike landline and wireless phones, VoIP phones, like computers and cable TV, will not work if there is a power outage. Traditional landline phones, on the other hand, generally work during a power outage because the phone company powers the phone line with a small amount of electricity from its private “backup” power source.

Exciting Future.

VoIP technology is part of an exciting and changing communications landscape. Nonetheless, today's version of the service has some shortcomings that purchasers should consider before switching to Internet-based phone service.

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