Cheap VOIP Options

Over the past few months I have been keeping my eyes out for cheap alternatives to a land line at home. I currently just have a cell phone, but wanted something to use in the early evenings to minimize my cell phone bills. I have been looking at two different VOIP options that are a great deal cheaper than services like Vonage which cost at least $20+/month.

The first is MagicJack which is a nifty device that plugs into your USB port and acts as a phone jack. The device is similar to a USB flash drive but allows you to plug in any type of phone to have telephone service. This device is incredibly inexpensive at $40 which includes the device and an entire year of service. The only reason as to why I haven’t signed up for this yet is because the service does not offer a phone number in my area code as of yet. Apparently they are adding more area codes each week, but I am still waiting on a North Carolina area code.

The second option is a long time player in the industry—Skype. Skype has been around for several years and offers fairly clear phone calls over their network. You can use your computer to make Skype-to-Skype calls or to call other people who are not on Skype. I signed up for Skype and have been using it for several months. So far, I have spent around $30 for 3 months of service which includes voice mail and a local North Carolina number. The only thing that I really do not like about Skype is the fact that when you call someone your number shows as Unavailable on a Caller ID enabled phone. This can easily cause people to not answer the phone, because they think that you are a salesperson. Skype’s technology is fairly reliable and I have not had any calls dropped or much interference at all. If they can fix this Caller ID issue I would be happy to stick with them. Apparently, this feature is available internationally, but not in the US.

I really think that both MagicJack and Skype have an incredible opportunity to change the face of the telephone industry. I know that the typical mega-phone company is shaking in their boots as they see small companies offering incredible deals on services that have been relatively expensive for years. If you don’t get anything out of this post, at least investigate whether you can save money on some sort of VOIP provider as opposed to a monopoly phone or cable company.

http://www.magicjack.com

http://www.skype.com

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2 Responses to “Cheap VOIP Options”

  1. Good pts about both magicjack & skype.
    I had a few to add.

    Skype : As of now unlimited calling plan with a phone number in USA costs $36 + $24= $60 per year. (no equipment if you use PC otherwise see below)

    Skype (Pros)
    1. no need to turn on computer, use a device like Linksys CIT 400 or Netgear SPD200H (typically costing $120)
    2. Owned by eBay so you know they wont fold up like sunrocket.

    Skype(Cons)
    1. no outbound caller id (just as you said) so person receving your call sees a generic number 000-123456 or ‘anonymous’ so they might not answer your call.
    2. extremely poor DTMF support. what that means is when you call one of those 1-800 type numbers where you have to enter numbers/extensions to navigate through a voice response system (example 16 digit credit card number when you call a credit card company) skype fails to transmit those numbers properly, so you are unable to continue with the call. good luck calling airlines, hotels, banks, ur doctors office.

    MagicJack :As of now unlimited calling plan with a phone number in USA costs 20 (+ 20 for the equipment)

    MagicJack (Pros)
    1. low cost, ($20 vs $60)
    2. better support (or I should say works satisfactorily) for DTMF

    MagicJack(Cons)
    1. have to keep computer on to get service.
    2. owned by ymax corporation (not sure if can last long enough in the business OR go without raising the rates
    3. not enough area codes (as of now some states NC, SC are still missing)

  2. geeknlovinit,

    I appreciate your comment. I agree completely. I use Skype with a Netgear SPH200D cordless phone which allows me to not be signed into Skype but use it just like a regular phone line. I have experienced all of the cons that you mentioned but still find it to be a fairly reliable service. I do wish they would fix the caller id issue, but I have heard it is more complicated than one might think. I have figured out a way around it by signing up for a free grandcentral forwarding number and then logging in to grandcentral and having it call back to my SkypeIN number then the outgoing caller sees my grandcentral number instead of no caller id. It is not entirely convenient, but works fairly well. Thanks again, and I look forward to hearing from you again.

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