2008 VoIP trend alert - VoIP services let consumers keep traditional phone service too

Posted by Joe on December 20th, 2007

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We feel strongly that many of the VoIP services we have reviewed, such as Vonage, can be a fully acceptable replacement for traditional phone service without giving up any quality or reliability.  But, there are still many consumers that aren’t comfortable with making the switch from the traditional phone service.

This is somewhat hard to believe given all the benefits of VoIP over traditional phone service.  For example, VoIP services typically cost significantly less per month than traditional phone service and offer many features, such as access to voicemail over the web and free long distance, that traditional phone just can’t match.

The good news for consumers that are interested in VoIP service but aren’t quite ready to give up their traditional phone service is that so VoIP providers are developing solutions that allow a traditional phone line to live in harmony with VoIP technology.  This trend is in full swing in England and we are starting to see similar offerings in the United States.

For example, ooma, one of our top rated VoIP service providers, offers two different versions of its service- one that only uses your broadband connection and one that integrates both broadband and your standard telephone line.  The main benefit of such an option is that it allows consumers to maintain a traditional phone line which typically means keeping their existing phone number and having access to phone service in the case of a broadband outage.

Frankly, we feel that the quality of the top VoIP providers is so good that the extra line is typically unnecessary.  That being said, it is important to some people and we always see more options for consumers as a good thing.
We expect to see more developments in this area in 2008 and will be chronicling all new VoIP services and features as usual.  In the meantime, check out our in-depth coverage of VoIP service providers at NextAdvisor.com.

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VoIP subscribers to triple in the United States by 2011

Posted by Joe on December 20th, 2007

As 2007 comes to a close more consumers in the US are using VoIP than ever. eMarketer estimates that more than 16 million US households are currently subscribed to VoIP services and expects that number to triple to more than 45 million subscribers by 2011.

VoIP subscriber growth trends 2005 - 2011

So, why the tremendous growth in number of VoIP subscribers? There are probably several important factors. For one, VoIP has become an established technology thanks to companies like Vonage, our top rated VoIP service provider. Well over 2 million households subscribe to Vonage service in the United States alone, so we are well past the early adopters here.

The availability of cheap and reliable broadband Internet connections also helps the VoIP industry grow since VoIP calls are made through cable or DSL modems. In fact, the same eMarketer report estimates that more than 45% of households with broadband Internet connections will also be subscribed to VoIP by 2011.

Ultimately, the most compelling feature of VoIP service to most consumers is probably the same reason we like it so much- the monthly savings versus traditional phone service providers. We haver been reviewing VoIP services for quite some time now and have found time and again that VoIP service will save most consumers hundreds of dollars per year.

Ben Macklin, senior analyst and author of the eMarketer report, agrees

“Early indications suggest VoIP will be very popular worldwide simply because VoIP calls are cheaper,”

We are big fans of VoIP services like Vonage, voip.com and ooma. With the explosive growth of VoIP in the United States it is a better time than ever to make the switch from traditional phone service. Read our in-depth VoIP service provider reviews and comparisons to learn more.

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Take control of your dialtone with ooma

Posted by Joe on December 18th, 2007

We recently reviewed ooma, a new VoIP services that promises to “free your dialtone” by eliminating monthly phone bills, and found that it is extremely feature rich and represents a great value for most consumers (particularly those that make primarily or exclusively calls within the United States). What makes ooma different than other VoIP providers like Vonage or voip.com is that they don’t charge any monthly fees.

Subscribers pay $399 for a ‘hub’ which about the size of a paper back book and looks like a cross between a standard answering machine and an ipod. The hub connects to your broadband Internet connection and a standard telephone. The whole set up takes about 10 minutes and is extremely intuitive.

Once the hub is set up, ooma subscribers can make calls anywhere in the United States for free (International calls can be made for a small per minute fee that varies by country).

The upfront cost of the hub may sound steep, but if you do the math you will quickly see that ooma represents a great long term value. For example, if you were to use the ooma service for two years after purchasing the hub your effective monthly cost would be about $16.60 per month which is a much as 30% less than many other VoIP providers we have reviewed.

ooma also has several unique features, such as the ability “split” a single phone line and make or receive multiple calls at once (which requires an ooma “scout” device), that the rest of the VoIP service providers we have seen simply can’t provide.

Walt Mossberg, Personal Technology Columnist and resident tech guru at the Wall Street Journal, gave ooma a glowing review a few months ago. Walt liked many of the same features, such as the long term savings and the ability to integrate ooma with your existing phone line.
All in all, we really like ooma and highly recommend it. If you want more information on ooma you can read our review or visit their site directly.

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