Traditional and Internet Phone Comparison - Options

If you're setting up phone service in a new location or simply wondering how you can save money on your service, you have a lot of options that weren't available a few years ago. Current options include internet phone service, VoIP, traditional home telephone service (POTS), digital cable phone service, and wireless (cellular) service.
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Internet phone refers to services that allow you to place calls through your home computer. Most require your computer to be on in order to make a call. With some internet phone carriers, you must use a microphone and speakers, headset, or speakerphone connected to the computer. Some carriers now offer specialized telephone equipment that allows you to use a cordless or corded phone to make internet phone calls whether your computer is turned on or off. To use the service, you must install special software onto your computer and permit it to use a small amount of your computer's processing power.

VoIP (Voice over Internet Protocol), sometimes also referred to as internet phone service, operates through your high-speed internet connection, but isn't connected to your computer and doesn't require your computer's processing power. You don't need special software or a special phone, but you do need a VoIP adapter to connect to your internet router.

Traditional home telephone service, also called POTS or plain old telephone service, is available in any home with a telephone jack. POTS service is provided by local telephone providers.

Digital cable phone service is now offered by some cable television providers. It works similarly to POTS service, but may require an additional visit by a technician to install the service at the outside box and confirm installation in your home.

Wireless (cellular) service is also available in nearly all corners of the US. Several carriers offer wireless service, a selection of handsets, and a variety of packages. Many people are opting to use their cell phones as their primary phones to save money.

Each of these options has advantages and disadvantages. Review this chart to compare each option and decide which is best for you.

  VoIP Internet Phone POTS Digital Cable Wireless
Cost $10-30/ month plus set-up fee and per-minute fee Low monthly fee varies by service, additional low per-minute fee $6 and up, depending on income level and chosen features $6 and up, depending on income level, chosen features, and bundling with cable service $20 and up depending on chosen features and number of calling minutes.
Availability Anywhere broadband internet access is available Anywhere broadband internet access is available Everywhere In most places were cable television service is available Anywhere cellular signals can be transmitted
911 Access In most cases, may require additional fee No Yes Yes Yes
Internatio
nal Calling Available
Yes, with low per-minute fee Yes, with low per-minute fee Yes, rates vary Yes, rates vary Yes, rates vary
Requires Special Equipment Yes, broadband adapter Yes, computer No No Yes, cellular telephone
Number Portability Yes, in most cases In some cases Depends how far you move Depends how far you move Yes
Local Telephone Number Yes, in most areas Yes, in some areas Yes Yes Yes
Requires Internet Connection Yes Yes No No No
Requires Contract Yes Yes No No Yes
Available in Power Outage or Disaster No No Yes Yes Yes
Choice of Carriers Yes Yes In some areas Yes Yes
Can Send & Receive Faxes Yes, in some cases No Yes Yes No


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