Internet phone calls

Voice over Internet Protocol (VoIP) is a fancy name for using your computer to make phone calls. It makes a lot of sense. After all, whether you use ADSL or dial-up, your internet connection uses the phone line to send data. Your phone line treats voice traffic and data traffic differently, though. The trick to VoIP is to send voice as data.

VoIP might be worth a look if you have broadband and spend more than $50 a month on overseas or interstate phone calls. There are limitations, however.

• Using VoIP to call a regular telephone number will, in most cases, cost you money. VoIP calls are charged per minute and don’t discriminate by distance — a call to your next door neighbour will cost the same as a call to somebody on the other side of the country. In general it will cost about the same price as using an international phone card because most of these use VoIP technology. VoIP service companies that offer regular phone calls say they're working to make prices cheaper, and some may offer untimed local calls.
  
  
• If you switch to VoIP, people may not be able to call you from a regular telephone line. Many services only give you a VoIP number. People using other VoIP services can contact you but friends with a regular telephone won't be able to call you.
  
  
• Deciding whether VoIP will work out cheaper for you than regular long distance services is tricky. Weighing up the costs involved in monthly fees, line rental, overseas calls, local calls and your monthly ISP bill for bandwidth and traffic is hard enough, but there are also features to consider (see What to look for).
  
  
• There’s also the convenience. Most VoIP solutions require you to have a computer nearby, if not directly in front of you. Although some newer services let you plug a regular telephone into an internet router, you may be stuck at your computer or router to make the call, unable to roam freely.
  
  
• You’ll still need a landline for your internet connection, which will reduce potential savings, unless you use cable internet, or a suitable wireless internet service. Wireless VoIP phones based on Wi-Fi standards are on their way, which will help cut the cords.

VoIP and emergency calls

VoIP service providers don't always support triple 0 emergency calls - and if they do, your call may not always work. Read your service provider's terms and conditions carefully. It could be a good idea to keep your existing telephone line active for emergency calls.

Why VoIP may not work in an emergency

VoIP services identify callers based on their Internet Protocol address rather than a fixed address. For this reason, you can use your VoIP service and handset no matter where you're located as long as internet access is available. In the event of an emergency, the phycal location of a caller using VoIP can be hard to identify without verbal confirmation from the caller. The emergency call service may not be able to automatically pinpoint the location of the call.

In addition, VoIP services rely on mains power to work. In the event of a blackout, your computer and VoIP service won't work - a traditional fixed phone is powered via the phone line.

An industry review into the regulation of VoIP services is currently underway by the Australian Communications Authority, Australian Competition and Consumer Commission and the Department of Communications, Information Technology and the Arts. The review seeks to address some of these matters.