T-Mobile launches discount VoIP service with a few big downsides

Posted by Joe on June 30th, 2008

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At just $10 per month for unlimited nationwide calls, T-Mobile’s recently launched HotSpot@Home VoIP service seems like a great deal for most consumers on the surface. However, there are a handful of limitations and requirements that may cause potential subscribers, especially those that are not already using T-Mobile for their wireless service, to pass on the new service.

First, HotSpot@Home is only available to existing T-Mobile customers with qualifying wireless plans. In this case, qualifying means that you must be spending at least $40 per month on your wireless service. Existing T-Mobile subscribers who have opted for the lower priced cell phone service plans would need to upgrade in order to purchase VoIP service. Those consumers that are not existing T-Mobile subscribers would have to purchase a new T-Mobile wireless service in order to qualify.

Those T-Mobile subscribers that do qualify to purchase HotSpot@Home service will also have at least a two year service contract with the company. The multi-year commitment is a fairly common practices in the cell phone industry, so it is not necessarily surprising that T-Mobile would include a long term contract for new VoIP subscribers. However, these types of commitments are far less common with VoIP providers, many of which offer competitively priced month-to-month plans and even no risk free trials. We think the two year lock in period is what make HotSpot@Home far less competitive, even for existing T-Mobile subscribers, than it otherwise could be.

In all fairness, T-Mobile isn’t really trying to compete with more established VoIP providers, like Vonage, with the launch of HotSpot@Home. Their main target audience are existing T-Mobile subscribers that want to convenience of managing all of their calls, whether through their cell phone or home VoIP line, on a single bill. HotSpot@Home also has the added bonus of allowing subscribers to receive calls at either a home or mobile location from a single phone number.

HotSpot@Home may not be for you even if you are an existing T-Mobile subscriber. The additional contract commitment means getting locked into pricing for both your wireless and VoIP service. Since these are two very competitive markets with constantly decreasing price points and a better deal around every corner we would suggest no locking yourself in.

Most consumers would probably be better off considering a VoIP service like Vonage, which is a true land line replacement solution with very high call quality and advanced features only available on VoIP. You can learn more about Vonage or other VoIP providers by visiting our guide to VoIP service providers.

• Mobile VoIP developments run rampant in 2008
• New bill will improve VoIP 911 calling
• Facebook poll shows college students don’t know VoIP
• Apple OKs voip over wifi for the iPhone
• New legislation gives all VoIP subscribers access to standard 911 services

Vonage vs. Magic Jack - one reader’s opinion

Posted by Joe on June 30th, 2008

A recent commenter on our blog provided an excellent comparison of Vonage and Magic Jack, two popular VoIP services. We thought we would call out the comment in a separate post since we receive frequent inquiries from our readers about our opinion on Magic Jack.

I have Magic Jack and I agree it does a very good job, and it’s $19.95 per year, but the quality is not as good as Vonage, and Vonage offers more for the $24.99 a month. I have used Vonage for over 2 years and it is just the BEST PHONE Service I have ever used and I’m 58 year old.

I use my Magic Jack when the kids come home with the grand[kids] they use the Vonage phone to call all the friends around the USA, so Magic Jack is my GREAT BACK-UP. The other problem is Magic Jack does not have my area code as of yet so people wishing to call my on [Magic Jack] have to pay long distance, a bummer to be sure.

In this readers head-to-head comparison, it appears that Magic Jack offers a decent, low cost option but it is lacking in call quality and features. Vonage, on the other hand, is a true landline phone replacement option and offers many features, such as Internet based voice mail, that are only available with higher end VoIP services.

Between the two, we would suggest Vonage for most consumers that are looking for a high quality, feature rich and reliable Internet based phone service.

• Reader Question: Is Vonage better than my cable company’s phone service?
• Vonage starts 2008 with a clear legal slate
• Court decision will keep Vonage subscriber fees low
• 2008 VoIP trend alert - VoIP services let consumers keep traditional phone service too
• Vonage makes customer support a top priority

New legislation gives all VoIP subscribers access to standard 911 services

Posted by Joe on June 25th, 2008

VoIP subscribers will now have the same level of access to the country’s 911 emergency calling system as standard landlines thanks to new legislation sponsored by United States Representative Bart Gordon. The bill, H.R. 3403, the New and Emerging Technologies 911 Improvement Act of 2008, was passed earlier this week and is expected to be signed into law by President George Bush by the end of the month.

There is currently a two class system when it comes to access to the nations 911 infrastructure. Standard telephone services and wireless providers typically have full access to traditional 911 systems that route calls to the nearest geographic emergency services call center. VoIP providers have traditionally been kept outside of that system. A call to 911 on a VoIP line will typically be routed first to a call center operated by the VoIP provider who will then route it to emergency services operators located nearest to the location of the caller.

The bill will eliminate this two class system and give all American’s, whether they are on a VoIP line, standard telephone line or wireless connection, the same access to emergency services. According to Gordon:

“When Americans dial 911 in an emergency, they expect the call will go through, regardless of what phone they use. That’s why Congress acted to ensure all Americans had access to 911 services on their wireless phones, and it’s why we’re acting now to ensure that all Americans have access to lifesaving 911 services on their VOIP phones and other new technologies.”

Gordon’s legislation makes provisions to afford the same level of access to all future forms of communication that may be mandated to grant users with emergency services access as well as existing enhanced service used by the elderly and disabled.

“This ensures consumers don’t compromise their safety when they use new technologies like car-based 911 services and video and text services used by people with disabilities,” said Gordon.

The New and Emerging Technologies 911 Improvement Act of 2008 also opens the door for vast improvements in the existing 911 system which would be based on the same technology that enables VoIP calling.

“Our 911 system uses 30-year-old technology and is simply outdated,” said Gordon. “National emergencies like September 11 and Hurricane Katrina overwhelmed the 911 system and highlight why a strong IP-based system must be a priority.”

Learn more about VoIP services by visiting our VoIP service provider reviews and comparison.

• 3 tips for VoIP 911 calls
• New bill will improve VoIP 911 calling
• Apple OKs voip over wifi for the iPhone
• 2008 VoIP trend alert - VoIP services let consumers keep traditional phone service too
• Facebook poll shows college students don’t know VoIP

Reader Question: Will Vonage work with my existing telephone wiring?

Posted by Caitlin on June 19th, 2008

Q: I am already using a VoIP service through my cable provider, which works with my existing phone wiring. If I switch to Vonage, will I still be able to use the existing wiring for multiple phones in different rooms?

A: Yes. Vonage will work with your existing wiring, and you will be able to continue using multiple phones in different rooms. But in order to do so, you will have to make some modifications to the wiring. Vonage has a step-by-step guide explaining how to make these modifications yourself.

First, you will need to isolate your wiring from the lines that come into your house from the phone company by opening your Network Interface Device (or telephone box) and unplugging each of the short telephone wires from the corresponding jack. After confirming that the line has been successfully disconnected, just plug your modem into the Vonage phone adapter, and then plug your phone adapter into any telephone jack using a standard telephone cord. Then you can plug regular phones into the other phone jacks in your house.

If you do not feel comfortable modifying your own wiring, Vonage also offers professional installation starting at $99.95.

Whether you modify the wiring yourself or hire a professional, you should not connect more than five phones to a single Vonage line, otherwise the signal may fade, causing some of the phones not to work.

To learn more about Vonage and other VoIP providers, visit our VoIP service provider comparison and reviews.

• Reader Question: Does my computer need to be on for VoIP services to work?
• Facebook poll shows college students don’t know VoIP
• Court decision will keep Vonage subscriber fees low
• Reader Question: Is Vonage better than my cable company’s phone service?
• Vonage vs. Magic Jack - one reader’s opinion

Keep an ear out for HD VoIP

Posted by Caitlin on June 19th, 2008

The primary selling point for VoIP services is the decreased cost in comparison to traditional phone lines. But as VoIP services become increasingly popular and commonly used, we can look forward to an additional benefit - dramatically improved sound quality. At the moment, high definition VoIP has a bit of a mythical quality, since the technology is still being developed and there is not a great deal of readily available information just yet. Iristel introduced high definition VoIP in Canada on February 1st, 2007, claiming that the difference in quality was comparable to upgrading from an old AM radio to a CD.

Aside from Skype-to-Skype calls, however, HD VoIP is not yet readily available in the U.S. One problem with HD VoIP is the fact that unless both parties have an HD VoIP service, it is unlikely that either caller will notice improved sound quality. But as VoIP becomes more widespread and the technology continues to improve, it seems as though we can look forward to greater clarity in VoIP calls in the future, which is something to keep in mind when considering VoIP services. To learn more about VoIP services, visit our Internet telephone service provider comparison and reviews.

• Reader Question: What kind of Internet connection do I need for VoIP?
• New bill will improve VoIP 911 calling
• 2008 VoIP trend alert - VoIP services let consumers keep traditional phone service too
• T-Mobile launches discount VoIP service with a few big downsides
• Vonage vs. Magic Jack - one reader’s opinion

Prevent annoying or unwanted phone calls and text messages

Posted by Caitlin on June 17th, 2008

We told you how to opt out of receiving junk mail, but telemarketing calls and even m-spam, or text message spam, can be distracting, disruptive and, in the case of text message spam, can even cost you money. David Pogue of the New York Times recently found out how to block cell phone spam, and decided to share his discovery with readers.

If you use AT&T or Verizon you can block all text messages sent from the Internet, which is where nearly all text message spam comes from. If you have AT&T, log in at mymessages.wireless.att.com. Under Preferences, you have the option to block certain texts. If you have Verizon, log in at vtext.com. Go to Text Messaging and then Preferences in order to block texts. Sprint does not offer auto-blocking, but you can block specific phone numbers at sprint.com, under My Online Tools > Communication Tools > Text Messaging > Text Messaging Options > Settings & Preferences. T-Mobile doesn’t offer the option to block messages sent from the Internet, but you can block messages sent by email or block text messages containing certain phrases, at t-mobile.com, under Communication Tools.

In order to prevent telemarketers from calling your home, be sure to sign up for the National Do Not Call Registry. It takes less than 30 seconds to punch in your phone number and email address, and then confirm your email registration. And as of February 2008, telephone numbers places on the National Do Not Call Registry will remain on it permanently.

Various VoIP providers can also help prevent annoying, unwanted calls. Voip.com has a telemarketer blocking function, and Vonage, Lingo, ViaTalk, AT&T CallVantage, VoipYourLife and Packet 8 all have “Do Not Disturb” and “Anonymous Call Block” features that will, respectively, send all incoming calls straight to voicemail during specified hours and block any calls from callers who have deliberately blocked their caller ID. Visit our free online comparisons and reviews to learn more about VoIP services.

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Reader Question: Is Vonage better than my cable company’s phone service?

Posted by Joe on June 12th, 2008

We are borrowing the following reader question from Jim Rossman at the Dallas News since it is a question that we also receive frequently. Jim’s reader writes:

Q: I’m having an argument with my neighbor. We both have cable TV and Internet, and our cable company is offering telephone service now. My neighbor is going to sign up for it. He says I should, too, but I have Vonage, and I tried to tell him it’s the same thing.

He says the cable company’s offering is better. Who’s right?

A: Jim’s answer is essentially that Vonage probably offers consumers a better deal because it has better rate plans than cable. The cable phone service, on the other hand, offers the simplicity of being able to call your local cable company to set up your phone line and deal with any technical issues. From Jim’s perspective, Vonage is a more complex set up process than the cable company’s phone service.

We strongly agree with Jim that Vonage makes more fiscal sense as it will save most users hundreds of dollars per year versus standard telephone or most cable phone services. We do respectfully disagree on Jim’s take on the complexity of setting up Vonage phone service.

Most Vonage subscribers find the set-up to be extremely simple, as we did when we initially reviewed the service. Additionally, Vonage has invested heavily in customer support and product development to make the set up and maintenance of a Vonage VoIP connection even simpler than it already is.

We are obviously strong proponents of VoIP in general, but we encourage all of our readers to form their own opinion by reading Jim’s excellent analysis of Vonage versus cable telephone service. You can also learn more about Vonage or VoIP in general by visiting our Internet telephone service provider comparison and reviews.

• Vonage vs. Magic Jack - one reader’s opinion
• Reader Question: What kind of Internet connection do I need for VoIP?
• Reader Question: Does my computer need to be on for VoIP services to work?
• Court decision will keep Vonage subscriber fees low
• VoIP subscribers to triple in the United States by 2011

3 tips for VoIP 911 calls

Posted by Joe on May 5th, 2008

One of the questions we get asked most frequently from consumers that are evaluating VoIP service for the first time is whether or not VoIP is reliable in an emergency.

VoIP services handle 911 calls slightly differently than a standard telephone line. When you dial 911 on your VoIP handset the call is routed through a system called enhanced 911 or e911 which attempts to identify your physical location and, in turn, routes your call to the local emergency services in your area.

There are a few simple tips that can ensure that emergency calls made through your VoIP line, or through one of the alternatives we describe below, can be be every bit as reliable as 911 service on a standard landline.

1) When you do dial 911 through a VoIP line make sure you clearly communicate your name, phone number and address to the emergency operator. Since e911 typically routes calls to the local emergency services based on the address you used to sign up for the VoIP service, you can experience potential delays if your address has changed and not been updated with your VoIP provider. By alerting the operator immediately of your actual location you can ensure that you will get the most immediate response available and prevent them from making any erroneous assumptions about your whereabouts.

2) Lookup and record the local numbers for the various emergency services in your area. In most cases, this will be a local phone number that has the same area code as your home telephone number. By calling directly to your local emergency services phone number you can bypass the e911 system altogether and ensure that your emergency call will be properly routed. We recommend that you either program this local emergency number directly into your phone handset’s speed dial or permanently affix it to the base of your phone in some fashion.

3) Keep a landline for emergencies. Most landline phone services will allow you to purchase a stripped down service package that only allows you to make local and 911 calls. With the prices of VoIP services being so low, most consumers will still see significant savings over a full service landline phone bill if they purchase VoIP service and a basic landline service package. The landline will be tapped into the standard 911 system, so you can benefit from the savings of VoIP while still leveraging traditional landline emergency services.

The most important element to any of these tips is making sure your family and anyone else that may be in your home during an emergency is aware of your emergency procedures. Make sure all family members, babysitters, household help or other visitors know the best way to contact emergency services through your VoIP line.

You can learn more about VoIP by reading our reviews and comparison of VoIP service providers.

• New legislation gives all VoIP subscribers access to standard 911 services
• New bill will improve VoIP 911 calling
• Traditional phone service losing ground to VoIP
• Facebook poll shows college students don’t know VoIP
• 2008 VoIP trend alert - VoIP services let consumers keep traditional phone service too

Reader Question: What kind of Internet connection do I need for VoIP?

Posted by Joe on April 28th, 2008

A recent commenter on a post from our Reader Question series asked a great question that we felt warranted a new post to respond.

Q: Using dsl bradband for internet connection. Do you need satellite or cable to purchase Vonage?

Vonage requires a high-speed Internet connection (DSL or Cable). So, your existing DSL broadband connection will be totally sufficient if you decide to sign up for the Vonage service.

Keep in mind that one of the biggest factors in determining the quality of your VoIP connection, through Vonage or other VoIP providers, is the speed of your broadband connection. More specifically, you will want to test the speed at which data is transferred through your Internet connection. Internet connection speed is measured in kilobits per second, which is a measure of the speed at which data is transferred through your modem (you will often see it abbreviated as Kbps or kb/s).

Most experts agree that your Internet connection should have a minimum of 90 Kbps in order to have a quality VoIP calling experience. There are two great sites we have come across that will help you determine just what you can expect if you decide to sign up for Vonage or another VoIP services on your existing Internet connection.

First is SpeedTest.net. This site will quickly determine the speed at which data is sent and received, or uploaded and downloaded, through your broadband modem. The results are presented in Kbps. Keep in mind that your transfer rates can greatly vary throughout the day so it is best to run this test during the times that you would typically make phone calls from your home telephone line.

The second site, TestYourVoip.com, actually goes one step further and makes test VoIP calls from your Internet connection to locations all over the world. In under 20 seconds they are able to show you the estimated quality of VoIP calls from your Internet connection.

Both sites are totally free and we are not affiliated with them in any way, but we do think they offer valuable insight to consumers that are looking to join the VoIP revolution.

If you would like more information on VoIP please visit our guide to VoIP service providers.

• Reader Question: Does my computer need to be on for VoIP services to work?
• Apple OKs voip over wifi for the iPhone
• 2008 VoIP trend alert - VoIP services let consumers keep traditional phone service too
• Facebook poll shows college students don’t know VoIP
• VoIP comes to the iPhone

5 tips to live a more eco-friendly lifestyle this Earth day

Posted by Joe on April 22nd, 2008

In honor of Earth day we thought we would post a handful of useful tips related to the various services we review and compare here at NextAdvisor. The great news is that most of these techniques will not only reduce your impact on the environment but are also make your daily life easier.

1) Eliminate junk mail

We have posted previously on the hidden identity theft risk in junk mail, but in honor of earth day, we also wanted to point out that junk mail and other marketing communications you receive in the mail are very bad for the environment. Check out the original post for more tips on eliminating junk mail.

Additionally, we came across a new service today called Catalog Choice which allows you to select which catalogs you would like to receive. The service is free and allows you to opt out from receiving catalogs that you no longer wish to receive while still allowing those you want reach your mailbox.

2) Receive your credit report online

Whether you are ordering your free credit report from AnnualCreditReport.com or from one of the credit report monitoring services we have reviewed and compared make sure you opt for online delivery of your credit report. Not only will this lower the overall carbon footprint of your order because the reports don’t need to be printed or transported by postal mail, but you will also receive immediate access to your credit file information.

3) Go paperless when you have the option

Opt for paperless billing where you can. VoIP services such as voip.com and Vonage offer a paperless billing option and so do other companies such as cell phone providers and credit card companies. Accessing your billing information online is not only more eco-friendly but it is also more convenient.

4) Attend an online college or university

Think of going back to get a better job or just for personal enrichment? Consider an online college or University. We have reviewed and compared dozens of e-learning institutions and found that they are every bit as reputable as their traditional counterparts with the added convenience of being able to attend classes from your home computer. Since you don’t have to commute to and from a physical campus and most of the course information is distributed digital the impact on the environment is greatly reduced.

5) Store your data “in the cloud”

Use an online backup service such as Mozy to store the information on your computer’s hard drive. Online backup services are much more environmentally friendly than the hardware based alternatives because they cut down on the number of home storage devices that have to be produced and shipped all over the globe.

Do you have your own eco-friendly and convenient tips that you would like to share? We would love to hear from you! Just leave a note in the comments below.

• Reader Question: How do I stop junk mail?
• Carbonite agrees- online backup services are good for the environment
• How to eliminate the hidden identity theft risk in junk mail
• 5 reasons why online backup services are superior to offline home storage solutions
• Reader Question: How do I order my free credit report?