By Jessica Liu

As high speed and broadband internet connections are becoming more prevalent in homes across the United States, people are asking themselves can VOIP calling save me money on my phone bill? To answer this question you need to take a deeper look at VOIP calling and the expenses related to switching to VOIP.

The first thing to you should know is how VOIP calling works. When you place a VOIP call it works by converting the voice signal that you speak into the phone handset into a digital signal and sending it over the internet. This signal is then converted back into a voice signal and comes out of the earpiece on the other end. By sending the signal over the internet it doesn’t matter how far it has to go, a call across the street costs the same as call across the country. For people who have monthly long distance bills that are over $20, VOIP calling may be able to save you money on your phone bill.

When evaluating VOIP services you should have an idea of your monthly calling volume. The best thing to do is look at your phone bill for the past three months and figure out how many minutes you are using. If you are using less than 500 minutes a month you will find VOIP calling plans that are probably much less than your monthly phone bill. If you are using over 1000 minutes each month you’ll probably find unlimited calling plans will be more cost effective. If you make a lot of international calls, check to see if those calls are included in the plans you are evaluating.

Some VOIP services require that you update your telephone equipment. This is especially important if you have more then one phone in the house. The key to the VOIP system is VOIP router. It connects your broadband internet access to your new phone system. Some routers only interface with newer VOIP phones, meaning you will have to purchase new phones. Some routers allow you to plug conventional phones into them and keep your existing equipment. This really becomes an important factor if you have more than one telephone in your house.

Another factor to consider is the length of the contract. Many companies offer month to month contracts, others offer yearly, and some offer two year contracts. While a two year contract may look attractive from a price standpoint, locking yourself into a developing technology for twenty four months is something to give serious consideration to. A one year contract usually provides the best trade off between price and time commitment.

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