Ditch Your Telephone for VoIP

Although in recent years the cost of long-distance phone calls has decreased in many parts of the world, phone rates are often still prohibitively expensive for nonprofits, especially those working internationally. Communicating online is an alternative, yet can lack the efficiency -- and effectiveness -- of a phone call. A possible compromise? Voice over Internet Protocol ( VoIP or Voice over IP), a technology that enables you to make calls over the Internet for significantly less than the cost of a traditional phone call, or even for free.

Organizations most likely to benefit from VoIPs are those that need to make lots of long-distance phone calls, particularly abroad. This includes organizations that work internationally, but could also apply to those with staff in other parts of the country or abroad. Small nonprofits and NGOs that already have computers and an Internet connection, or whose staff work remotely because there is no office, could also benefit, even if they are just making local calls.

Depending on the service they choose, most organizations already have much (if not all) of what they need to make use of VoIP technology. Any additional required software is often free or inexpensive. However, there may be extra costs for hardware and services, meaning that Internet phone calls aren't cost effective for everyone. See below for more information.

What Will You Need?

In order to start making voice calls over the Internet you'll need:

• An Internet connection, preferably broadband. Dial-up can work with local calls, but sound quality may be poor over long distances.
• A computer with a sound card, except when using some types of IP phones.
• Messaging software (like MSN Messenger) or a software phone program (also called a softphone).
• An account with a VoIP service provider or voice messaging service.

You'll also need one of the following:

• A microphone and headphones (speakers produce feedback and echoes).
• An IP phone, which resembles an ordinary phone with a handset, buttons, and cradle, but connects to an Ethernet (network) port on your router or hub.
• A special adapter called a VoIP adaptor or ATA (Analogue Telephone Adapter) that allows you to connect an ordinary phone to an Ethernet port on your hub or router.

What are the options?

There are several ways to make voice calls over the Internet. Let's examine each of them in turn.

Proprietary Messaging Software

Real-time voice chat over the Internet is possible using proprietary messaging services. Popular services include MSN Messenger, Yahoo Messenger, AIM , Microsoft NetMeeting, and Skype. Proprietary messaging systems provide a relatively simple way of getting up and running quickly. The software is generally available at no cost, and is easy to set up. Access to the basic service is also usually free. There are some disadvantages, however:

• You can generally only chat computer to computer, and with users of the same service: MSN Messenger users cannot voice chat with Yahoo Messenger users, for example. This usually means downloading and installing software for each voice messaging service you wish to use. However, developments like PhoneGaim -- messaging software that allows you to connect to most of these popular messaging networks through just the one piece of software, and to make calls to traditional telephones -- may mean this will become less of an issue.
• Proprietary services tend to be Windows based -- options for Mac, Linux, and Unix users are pretty limited, if available at all.
• Voice quality is okay but may not be great, especially over long distances or when using a dial-up Internet connection.

You will need to download and install the latest version of the software on each computer you wish to make calls to or from. In addition, each computer will need a sound card, microphone, and headphones (or IP phone). You will also still need to set up an account with every messaging service you wish to use.

Voice over Internet Protocol (VoIP)

VoIP uses SIP (Session Initiation Protocol), a standards-based protocol that gets around some of the problems associated with proprietary messaging services and that offers greater flexibility. VoIP is operating system independent -- you can use it with Macs, Windows, and Linux.

Depending on the type of connection, VoIP calls may not always be free. Even where there is a cost, however, it is usually significantly less than traditional phone calls.

There are several ways to make VoIP calls:

Computer to computer: There is usually no charge for VoIP calls made from one computer to another (peer to peer). Each computer will need to have a software telephone (or softphone) installed, which simulates a real phone by pulling together the computer's microphone, sound card, and Internet connection. Many different companies offer free or low-cost software and connection services. Examples include Skype and CounterPath.

Analog Telephone Adapter (ATA): An ATA converts a standard analogue telephone signal to a digital signal that can be sent over the Internet. With an ATA, you can connect your standard telephone to your computer via a small adapter that plugs into your phone socket. Plug the phone cable into the ATA and you're ready to make VoIP calls using your telephone. Your computer will need to be on, however, and additional software may be required, although this is usually pretty straightforward to install. Many traditional phone companies are starting to bundle ATAs with their VoIP services.

IP Phones: These look similar to traditional telephones, but rather than a phone socket, plug directly into your broadband router (a device which sends data around networks, including the Internet). The advantage is that you can use a VoIP phone anywhere you have an available Internet connection and a network port. Wireless IP phones are also available, theoretically allowing users to make VoIP calls from any wireless hotspot. Costs for IP phones start at around £70 ($125).

USB Internet phones, on the other hand, plug into an available USB port on your computer. Prices start at around £25 ($45).

So far, the options described allow you to make calls to other VoIP subscribers. But what if you want to call those who only use traditional phones and who don't have a broadband connection? Well, technology has an answer.

Calls to Ordinary Telephones

VoIP services are also capable of interfacing with telephones on the traditional Public switched telephone network ( PSTN ) enabling you to make calls to traditional telephones through your broadband connection.

SkypeOut, for example, allows you to make VoIP calls to ordinary phone numbers all around the world for a relatively small fee. Many other VoIP Service providers offer similarly low-cost services.

Some services allow you to connect to PSTN phones, but don't allow you to receive real-time voice calls from them to your computer, so check to make sure the service does what you need it to do before signing up.

Are There Any Limitations?

Although VoIP can be both cost-effective and more convenient for some users, it isn't quite ready to completely replace traditional PSTN phones. Drawbacks include:

• Dependent on Internet connection. Since VoIP uses the Internet, your ability to make calls will be affected by the quality, speed, and availability of your Internet connection. Local calls may be feasible over a dial-up connection, but for long-distance calls to other countries, you'll probably need broadband. Also, if your Internet connection is down, you will not be able to make or receive VoiP calls.
• Power supply required. If the power goes down, your PSTN phone will normally continue working (unless it's a cordless phone). With VoIP, no power means no telephone.
• Viruses, Internet worms, and hacking. Because VoIP uses the Internet, it is susceptible to attacks, although this is very rare. Solutions to counter this are ongoing.
• Underpowered computers. VoIP calls can be affected by other applications running on your computer. For example, if you are chatting away on the phone and open another application that uses up your computer's processing resources, call quality will suffer or your system could crash completely in the middle of an important call.
• Calls to emergency numbers. This is problematic if the caller is not able to identify his or her location, since there is no real way of associating an IP address with a geographical location. It may not be possible to route calls to the nearest emergency call center, and with some VoIP services you may not be able to make emergency calls at all.

More Information

More information on VoIP can be found on the following sites:

• How Stuff Works : A detailed, plain-language explanation of how VoIP works.
• VoIP Wiki: A reference guide to all things VoIP.
• VoIP on Wikipedia: This online encylopedia entry includes useful links and descriptions.
• My VoIP Provider: A searchable directory of VOIP providers.