The first rate and service comparison of the newest local phone technology compares nine of the nation's leading residential VoIP services on price, features, and "fine print."

Residential Voice Over Internet Protocol (VoIP), a technology that allows voice communications to travel over the Internet via a broadband connection, is becoming more broadly available and increasingly more competitive on price and feature sets, according to a new chart released today by the Telecommunications Research & Action Center (TRAC). As the nation's premier telecommunications consumer information and advocacy organization, TRAC advises consumers to consider their options carefully before switching services. Frequent callers (2 or more hours per day) who already have home broadband service and are willing to accept the limitations of VoIP when compared to traditional phone service, could save money. VoIP service plans are priced anywhere from $9.99 for basic service to $35 or more for all-inclusive plans that include unlimited local and long distance calling. However, limitations of the service could outweigh the benefits for others.

The TeleTips Consumer Guide to Telephone Service Over the Internet compares nine of the nation's leading residential VoIP services on price, features, and "fine print." The service providers listed include cable companies who are increasingly offering VoIP calling service, as well as established third-party carriers. Call quality and service reliability of the different carriers were not tested.

"VoIP service is moving into the consumer mainstream," said TRAC Chairman Samuel Simon. "Consumers with existing broadband connections who can accept the tradeoffs inherent to the technology may want to compare VoIP services with the bundled local and long-distance packages being offered by traditional telecommunications carriers," said Simon.

While VoIP telephone service is an exciting new option for telecommunications consumers, it comes with many important caveats:

• VoIP 911 service differs from traditional telephones. Many VoIP service providers do not support emergency 911 calls at all. Callers dialing 911 will usually need to tell the emergency operator where they are located, since their address typically will not appear automatically to the operator. Enhanced 911 service (E911), which provides emergency operators with the caller's actual location, is not yet supported by all VoIP providers.
• VoIP service is dependent on uninterrupted electrical and broadband service. If electricity or broadband service is interrupted, subscribers will be left without service. TRAC recommends that anyone considering VoIP service should also have a wireless phone with a car charger to ensure that they can continue to call out in the event of a sustained electrical or broadband service outage.
• Most VoIP services connect to only one phone in the house. Consumers can, however, connect their VoIP adapter to a cordless base station with several handsets placed around the house.
• While the quality of VoIP phone calls has improved dramatically, some call quality issues with VoIP services remain. This can produce clipping, call drops, and echo on calls made with a VoIP phone.

The TeleTips VoIP Comparison Chart may be purchased for $3.00 on TRAC's website (www.trac.org) or by sending a self-addressed stamped envelope and $4.00 to TRAC, P.O. Box 27279 Washington, DC 20005.

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