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It comes under various names – internet phone service, digital phone service, IP phone service, or broadband. But guess what? They all fall under VoIP phone service. Offered by most telephone companies, the customer has a choice between residential or business use-just like traditional phone services.

Advantages Far Outweigh Disadvantages

In terms of quality, VoIP has certainly gone a long way from the often patchy intermittent calls due to narrow internet bandwidth. With today's broadband internet, quality hardly figures as a problem in VoIP. Even if the calls have a slight latency from time to time, it is no cause for complaint.

The main advantage of VoIP is the fact that customers do not get charged communications taxes on their bill. Payment is a fixed charge on a periodic basis, which is typical of internet broadband charges. Depending on the service provider, it can start from as low as $10 per month or $199 per year, and include unlimited domestic and international long distance calls. Compared to traditional phones, there is none of the duration-based call charges. Customers no longer have to monitor their call times. For residential subscribers, VoIP can translate to an annual phone bill savings of at least $500.

Aside from needing a high speed broadband internet connection, there is not a lot of “special” equipment that you need to invest in when using this technology. All you need is your cellphone or PC to be able to use it. For those who would like to convert their analog phones, they can choose to do so by using an Analog Telephone Adaptor (ATA) supplied by your VoIP phone service provider.

Businesses Win When They Use VoIP

Businesses have the most to benefit when using VoIP phone service. Keep in mind, however, that they would have to spend upfront to get these benefits. With a single VoIP call taking about 90kbps, businesses need to make sure that their bandwidth can handle surfing, emailing, chatting, and remote corporate systems access over VPN as well. Small offices have been known to invest in a T1 or T3 broadband connection. In fact, prices for these types of connection have significantly gone down over the years.

This means little when the business can realize as much as 80% or more in savings when using a VoIP phone service compared their regular phone expenses. For companies with extensive global operations that would normally require expensive teleconferencing, video calls and video conferencing, their savings could run into millions of dollars annually. These do not include the documents that can be sent simply over internet fax or email attachments.

If a business is looking for ways to cut costs, using a VoIP phone service may just be the thing for them. Despite the initial upfront costs, it will allow the business to squeeze more profits from their operations.

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Source by Chavella Kelly