Tuesday, February 14, 2012

Money & Business

Who needs phone lines?

By David Lagesse
Posted 8/3/03

Tim Kowalsky happily cut the cord to his local telephone company. No, he hasn't gone hermit--he's still making calls from home with a familiar touchtone phone. But the calls bounce magically through the Internet before reaching his Minneapolis neighbors or the local pizza parlor. And his phone bill has dropped by about $25 a month.

For the first time since Alexander Graham put the ring in Ma Bell, many Americans have a choice in local phone service. Kowalsky is using Vonage, one of several new services stealing customers from the phone monopolies. All you need is a broadband Internet connection, like a cable modem. Setup takes minutes: Plug a black box into the modem, then plug a standard phone (or phones) into the box.

Internet phoning once meant tinny-sounding voices with a lot of static. "We're trying to educate people that in 2003, Internet calls no longer suck," says Jeff Pulver, a pioneer in the field. He's right. U.S. News tested Vonage and a competitor, VoicePulse. The calls generally sounded good, though friends at the other end sometimes complained of echoes or dropped words. Vonage, for one, suggests tweaks that might ease problems, but Hank Karl, a Connecticut salesman who had difficulty hearing customers, didn't think it was worth the effort. The companies do offer a money-back trial of a couple of weeks.

The outlay is pretty small. Sign-up is $30. Vonage charges $40 a month for all local and domestic long-distance service, and VoicePulse charges $35 for a similar package. A third company, Packet8, is a bargain at only $20 a month, though it includes fewer add-ons, like call-waiting. You'll save even more because Internet calls aren't subject to phone taxes, which add $15 or more to all-you-can-eat plans from Verizon, BellSouth, et alia. That's why Baby Bell monopolies are lobbying regulators to tax the Internet players.

Old-fashioned phones still have some advantages. They can, for example, automatically relay information to 911 call centers; Internet phones cannot. And if the power goes out, so does your Internet phone. A cellphone is one backup option. So is a regular old phone, with a cord, plugged into a phone jack.

But then you'd miss the Internet add-ons that no land line can match. VoicePulse, for example, lets you route frequent callers to a particular option. So your annoying cousin who calls way too often looking to borrow some cash? He'll always be met with a busy signal.

USNEWS.COM

Like to tinker? The "Tech Bits" column reviews a Web phone service that is harder to install but free.

This story appears in the August 11, 2003 print edition of U.S. News & World Report.

advertisement

advertisement

Special Reports

Paying for College

Paying for College

Colleges break links with lenders but now give less guidance to students on where to look.

NEWSLETTER

Sign up today for the latest headlines from U.S. News and World Report delivered to you free.

RSS FEEDS

Personalize your U.S. News with our feeds of blogs and breaking news headlines.

USNews MOBILE

U.S. News daily briefings are also available on your mobile device.

Use of this Web site constitutes acceptance of our Terms and Conditions of Use and Privacy Policy.