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Cheap VOIP, Free and Cheap VOIP Reviews

VOIP is an acronym for "Voice over Internet Protocol", a phone service that saves you money on long-distance calls by transmitting your phone calls over the Internet instead of using a traditional landline. Some cheap or free VOIP services come through a VOIP software that you install on your computer, while others require an adapter that connects your phone to an Internet modem.

The main players in the free or cheap VOIP software category are Skype, Yahoo Voice, and the emerging Google Voice. In the VOIP adapter category, there are many services to choose from, but some of the most noteworthy are Ooma, Phone Power, VYL Media, ViaTalk, Vonage, and Lingo.

All of these services can offer tremendous savings on your phone bill. Your choice in selecting a cheap VOIP service provider will depend on which service offers the best quality and greatest savings given your phone usage patterns. The price difference among these companies is relatively small, but we did find in our research large differences in customer satisfaction (more on this later).

Note that cheap VOIP phone service depends on having a fast, reliable broadband Internet connection, such as DSL or cable. If you don't have a broadband Internet connection, or if your connection is unreliable, then you might want to consider upgrading your Internet access before looking into VOIP service.

VOIP Phone Service Types.

There are two types of cheap or free VOIP phone service: computer-based software and adapter/modem-based.

VOIP software:

Cheap computer-based services, such as Skype, Yahoo Voice, and Google Voice, run on your computer and don't require any additional hardware. If you have a relatively new computer (one purchased in the last few years) and you're comfortable using it, then a VOIP service that uses VOIP software offers a simple, low-cost, or free way to make long-distance phone calls. The downloads are free and Skype and Yahoo Voice offer video chat through webcams. You can also set up an "online phone number" to receive calls on your computer from traditional phones. There are no setup fees with these services and no extra equipment is required. These services are best as a supplement to your existing phone service rather than as a replacement for it. Skype is by far the most established service provider in this category and is supported by both PCs and Macs. Yahoo Voice offers comparable features, but it runs only on PCs.

Although we have listed magicJack in the computer-based category, because it requires use of your computer, magicJack also requires that you purchase additional hardware. With this service, you must purchase the magicJack adapter that connects your phone to your computer through the computer's USB port.

VOIP adapter/modem:

Cheap modem-based VOIP phone services bypass your computer completely and instead use a VOIP adapter that connects your traditional phone into your broadband Internet modem. This arrangement lets you make calls the same way you do on your traditional landline phone. In addition, modem-based VOIP phone services typically offer many free features, such as voice mail, caller ID, call waiting, and even a second phone line. Ooma, Phone Power, VYL Media, ViaTalk, Vonage, and Lingo are the main providers in the cheap or free modem-based category.

VOIP Phone Service Plans.

Each VOIP phone service provider offers a variety of plans to suit the needs of different types of users.

In the budget VOIP software services category, Skype offers three cheap VOIP calling plans for computer-to-phone calls: $2.95/month for U.S. and Canada; $5.95/month for calls to any one country from the U.S.; $12.95/month worldwide. You can also set up an online phone number for $5/month; this feature enables you to receive phone-to-computer calls though Skype. Skype to Skype calls are free.

Yahoo Voice, bundled with Yahoo Messenger, offers separate services for outgoing calls, incoming calls, and PC-to-PC calls. The Yahoo "Phone Out" service offers prepaid calling minutes for all outgoing calls and charges a per-minute rate based on the country or region that you're calling; for example, Yahoo charges 1.9¢ per minute for PC-to-phone calls within the U.S; you can get started by purchasing a $10 pre-paid credit voucher. The Yahoo "Phone In" service enables you to set up a phone number to receive calls for $2.49/month. The Yahoo Messenger service allows you to make free PC-to-PC calls.

MagicJack charges a yearly subscription fee of $20 for the service, which includes incoming and outgoing calls within the U.S. Note that you will need to keep your computer turned on to receive calls via magicJack. (With Skype and Yahoo Voice, the call goes to voicemail if your computer is off.)

In the cheap VOIP adapter/modem category, Phone Power offers a range of cheap VOIP plans: $14.95/month for a two-year plan; $16.95/month for a one-year plan; and $19.95/month for a month-to-month plan. Cancellation fees apply after 30 days for the longer-term plans. Phone Power also has a prepaid plan costing $199.95 upfront for two years of service (that's the equivalent of $8.33/month). The first 60 minutes of international calls are free; after that, you're charged a per-minute rate based on the country you're calling.

VYL Media offers a nice range of low-cost plans. However, the basic plan from this VOIP provider is $14.95/month, which covers only "incoming" and "on-net" calls. You will need to sign up for the medium range plan at $23.97/month to cover all outgoing calls in the U.S. ViaTalk's basic plan is $9.95/month for the U.S. and Canada, including 60 minutes of free international calls. Vonage offers a basic plan for $17.99/month for the U.S. and Canada, and a World plan for $24.99/month. Lingo's basic plan for the U.S. and Canada is $19.95/month, with a first-month reduced rate of $4.95.

Then there's Ooma, another modem-based VOIP service, which offers free basic service, or a premier plan for $9.99/month that includes additional features, such as a second phone line, three-way conferencing, and enhanced voicemail. But there's a costly catch with Ooma, so read on.

VOIP Phone Numbers.

If you plan to be a dedicated VOIP user, no problem. With cheap VOIP services, you can also set up a phone number to receive incoming calls on your computer, but you'll pay for this extra feature. Skype charges $5/month for this service, with an annual subscription, and Yahoo Voice pricing starts at $2.49/month with an annual subscription.

Modem-based VOIP providers require that you choose a phone number when you first sign up. You'll be given the option of "porting" your current phone number to your new low-cost VOIP service or choosing a new phone number. If you decide to port a phone number, you may need to allow some time -- from a few days to a week or more -- for the change-over to be processed. So check this out with your existing service provider.

VOIP Phone Service Startup Fees.

Startup fees for VOIP services vary widely. The main computer-based VOIP software services -- Skype and Yahoo Voice -- do not charge startup fees. With these cheap VOIP services, you get access to the low-cost VOIP provider's software as a free download and pay only the stated fees for outgoing calls to landlines or cellphones, and for setting up an online phone number. For example, to get started using Skype, simply download the software onto your computer, set-up an account, and then sign up for a subscription option at the Skype website.

Most of the modem-based cheap VOIP service providers charge additional one-time startup fees. Most services also send you a VOIP adapter or let you use your own. If they send you one of their adapters, they usually don't charge for the use of the adapter but may charge shipping and handling fees or an activation fee. For example, Phone Power charges one-time shipping and handling costs of $14.95 for its Phone Power VOIP adapter. VYL Media, on the other hand, charges an activation fee of $19.95. Vonage charges $9.95 for the purchase of the Vonage VOIP adapter. ViaTalk charges $10.95 for shipping and a $29.95 activation fee. Lingo is currently waiving its shipping and activation fees. And Australian-based Ooma charges the highest startup fee by far -- $224.95 for the purchase of the Ooma Telo adapter -- but then you can make free calls for as long as you keep the service.

The total startup costs for a low-cost modem-based VOIP service will probably include your first month service charge plus additional one-time startup costs. We like the fact that the Phone Power website is very clear about the total startup costs for its service. The site actually shows you the math (including taxes) right up front, rather than making you wait until you place an order. For example, the total startup for Phone Power's two-year plan is $32.98, including the first month of service.

magicJack typically charges $20 to purchase the magicJack adapter that connects your telephone to the USB port on your computer, although the company is currently offering a special promotion in which they'll send you the adapter for free.

VOIP Phone Service Emergency Calls.

If you make an emergency 911 call using your traditional landline phone, your home address is immediately transmitted to the 911 operator. What about VOIP phones? Cheap computer-based VOIP phone services do not provide this safety net. Both Skype and Yahoo Voice clearly state on their websites that they do not support 911 calls; they recommend using a traditional phone or cellphone for this purpose. Most cheap modem-based VOIP phone services, on the other hand, let you make emergency 911 calls. Some services charge a small monthly fee for this option. This is a relatively new feature, so we recommend that you make sure it works on your discount VOIP system before giving up your current 911 service.

VOIP Voicemail, Caller-ID, and Other Features.

You're probably spoiled by all the convenient features you get with your traditional phone set up. But voice mail, caller ID, and other useful features are also available on VOIP, but not always for free. In the cheap computer-based VOIP category, Skype offers a small range of features such as voicemail, call-forwarding, and text messaging that you pay for through a subscription or on a pay-as-you-go basis. Yahoo Voice offers voicemail as part of its monthly subscription plan for incoming calls. magicJack offers a limited set of features, including voicemail, caller ID, and call waiting.

Most of the discount modem-based services incorporate many free features, such as voicemail and caller-ID, into their subscription plans. For example, Phone Power offers more than 30 free features, such as three-way conference calling, call forwarding, and voice-to-email, which sends a copy of your voicemail to your email account as an audio file. VYL Media has 24 free features, including call waiting, caller ID, and voice-to-email. ViaTalk, Vonage, and Lingo all offer a comparable set of features. Ooma's basic plan includes features such as voicemail, call waiting, caller ID, 911 service, and a landline backup option that can be used if there is an Internet outage. Ooma also offers a $9.99/month premier plan that includes additional features, such as a second phone line, three-way conferencing, and voice-to-email.

VOIP Phone Service Accessories.

You might be wondering if you need to buy any special hardware or other equipment. For cheap computer-based VOIP, be sure that your computer can support a speaker and microphone. Nearly all recent-model computers include built-in speakers and microphone, so if you've purchased your computer within the last few years, this shouldn't be a problem. You might also wish to invest in a headset to connect to your computer, such as the Skype Freetalk headset for $22.88.

If you sign up for a cheap VOIP service that is modem based, the service provider will let you use your own VOIP adapter (purchased from a third-party) or they'll send you an adapter made by the company. Ooma requires that you purchase the Ooma Telo adapter, while services such as Phone Power, VYL Media, and ViaTalk give you the choice of using your own adapter or having their company's adapter shipped to you. You do not need to purchase a new phone to use modem-based VOIP -- just use your traditional phone to make your low-cost VOIP calls.

VOIP Phone Service Reliability and Customer Service.

We've come to expect a high degree of reliability from our traditional landline phone service. If there's a problem, you call the phone company and they either fix it remotely or send someone to your home. With VOIP phone services, the reliability of your service largely depends on your Internet connection and the proper installation of your VOIP software (for cheap computer-based VOIP) or your VOIP adapter (for cheap modem-based VOIP). If there are difficulties, they must be resolved by contacting customer service.

In the computer-based VOIP category, a VOIP review by experts at Top Ten Reviews approvingly points out Skype's ease of installation and setup, thorough documentation, and free computer-to-computer calling feature that can be used wherever you are in the world. A VOIP review by a user discussing calling plans on Snapfile.com writes that Skype is easy to install and configure, and works well if you're talking to other Skype users. However, other VOIP reviews by users on the same website grumble that Skype offers little direct technical support, even for paying customers. Skype does offer online help in the form of written documentation, as we've mentioned, and there are also Skype user forums maintained by volunteers. But if you have difficulty with the service, you'll have to be patient and do your own investigating.

Yahoo Voice isn't much different from Skype in these dimensions. As with Skype, you're expected to use the online documentation: Yahoo Voice doesn't offer phone support. It comes bundled with Yahoo Messenger, the social networking application, which a VOIP review on About.com warns adds lots of extraneous communications features and hogs computer space. So if you aren't a social networking type, Yahoo Voice may seem a bit slow and unwieldy; indeed, a blogger writes in a comparative VOIP review that Skype is the better choice for phone calls. That said, an expert VOIP review at About.com likes the simple navigation tabs on the Yahoo Voice interface. Yahoo Voice also gets critiqued because it's only supported by Windows/PCs and a smiley-face icon makes it seem unbusiness-like.

magicJack is panned in computer-based VOIP reviews on measuredup.com, where users complain that the adapter doesn't work and the company offers poor customer service. An expert writing a VOIP phone review at PC Magazine likewise reports that magicJack suffers from poor technical support and that customers have complained about billing errors.

Modem-based VOIP services require installing a VOIP adapter and getting it to interact with your Internet modem, which makes the initial startup a little more complicated. To compensate, the best modem-based VOIP phone services offer costumer support over the phone, in addition to online chats. Ooma, Phone Power, and VYL Media all receive high marks for customer support in VOIP provider reviews by users.

More specifically, customers praise the Ooma Telo (the latest Ooma VOIP adapter) for it's easy setup, according to modem-based VOIP phone reviews on Amazon; some report using the service often enough that they were able to recoup their initial $200+ investment in less than a year. If you're nervous about the high upfront costs when signing on with Ooma, a VOIP service provider review by experts at Fiercevoip.com analyzed the Ooma business model and found it promising. While not exactly a free pass, the report suggests that the company is unlikely to disappear before you've gotten your money's worth.

Phone Power also pleases users, who comment in modem-based VOIP reviews on Whichvoip.com, about its ease of setup and helpful technical support; some recommend the Phone Power prepaid two-year plan, which reduces your monthly cost. Technical support and customer service are strong points for this VOIP provider, according to VOIP reviews by users at DSL Reports. Ditto on the customer service for VYL Media; on Whichvoip.com, consumers report almost no waiting time when they need to reach the company to discuss a problem.

On the other hand, many modem-based VOIP service providers are not all that user-friendly. For example, VOIP provider reviews by customers on CNET grumble about Vonage's poor customer service and some complain about being billed for services they did not receive. Similar grievances about the company Voip.com are aired on Whichvoip.com, where users report having to wait for hours on the phone to speak with a customer service representative. ViaTalk earns mixed reviews on Whichvoip.com; some users are satisfied with the service, while others complain of unreliable service and poor customer support. Users on Compare VOIP also cite poor customer service, though one user argues that the lack of customer service is worth the tradeoff for the low phone rates.

Lingo garners the most negative customer VOIP reviews by far, with users on CNET complaining of the "worst" customer service, and users on My3Cents.com citing terrible customer service and questionable billing practices. Users on My3cents also complain that Lingo advertises "unlimited" calling plans but then disconnects users or freezes their international calls for exceeding some unspecified number of calling minutes.

VOIP Phone Call Sound Quality.

Despite incredibly low costs, the quality of the connection with cheap computer-based or modem-based VOIP service is often quite good. An expert reviewer on CNET notes that recent changes in the Skype software noticeably improved the sound quality, which a user deems excellent. Yahoo Voice earns similar nods of approval for call quality in several VOIP service reviews. An informal test by CNET, for example, concluded that the sound quality rivals that of a landline, and Voipnow.org deems the calls "perfect" so long as your Internet connection and headset/mic are up to snuff. A dissenting voice from About.com, however, says the quality of calls on Yahoo Voice doesn't quite measure up to Skype.

Customers also praise Ooma for good sound quality, according to modem-based VOIP reviews on Amazon. A number of reviewers at Costco.com praise the Ooma Telo adapter for good sound quality; some even say that it sounds as good as their landline. Phone Power also provides good sound quality, according to user reviews on Compare Voip and Amazon.com.

Power Outages and VOIP Service.

Traditional landline phones don't rely on electricity, so they continue functioning even if there's a power outage. Because all VOIP services -- whether computer-based or modem-based -- are routed through your Internet connection, a power outage causing your modem to shut down will obviously shut down your cheap VOIP phone service. As insurance, you might consider investing in a backup power supply (which can be purchased for roughly $120) to keep your cheap VOIP system working in the event the lights go out.

One Final Note:

The cheap VOIP phone service that you choose will depend on how you intend to use the service. The computer-based services such as Skype and Yahoo Voice are intended to supplement your current landline or cellphone service. The modem-based VOIP services, on the other hand, can be used to replace your landline service completely. However, if you choose to go with a modem-based service such as Ooma or Phone Power, we recommend keeping a landline or cellphone around for a while until you're sure the VOIP service works for you. Once you're familiar with the ins and outs of VOIP, you'll be in a better position to decide whether you need to keep your traditional landline or some other backup system.

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