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VOIP, or voice over internet protocol, uses broadband data lines including cable, DSL, and fiber rather than traditional copper phone lines. In layman's terms, it's making calls over the internet. But just what are the benefits of VOIP service, and how does it differ from the good ol fashioned Ma and Pa Bells?

First and foremost, VOIP's claim to fame is cheap, unlimited calling. While no VOIP service is totally free, you can make calls through the internet anywhere between 50-90 percent less than traditional phone service depending on the provider. And calling isn't limited to local numbers, either; you can dial national and even international numbers for free on an unlimited basis.

You will never receive a telephone bill. You will have to pay a monthly or annual fee, but that's all there is to it. No confusing phone bills, no surprises. It's a great way to preserve those pricey, expensive minutes on your cell phone. But perhaps the best way to describe the benefits of VOIP is to describe an actual user's experience with a popular VOIP provider.

The Money-Saving MagicJack
Recently I saw a television commercial advertising a new product called, "MagicJack." The advertisement explained how the small unit which plugs into your computer's USB port on one end and your home telephone on the other end saves you hundreds in phone charges per month.

With an initial cost of only $39.95, MagicJack will provide you with unlimited local and long distance calling plus many other features for only $19.95 per year (you heard right, per year). So intriguing was the advertising that I had to check it out for myself.

The MagicJack promptly arrived in my mailbox only a few days after I ordered it. The futuristic-looking little unit also came with a USB extension cord in the packaging, which is a nice optional feature should you require it.

After plugging the MagicJack into the USB port on my new iMac, its software promptly loaded on my machine and prompted me to click twice to launch the MagicJack Softphone. I then plugged my cordless phone I've had for years into the other end of the MagicJack. But before I could place a call, I had to set up the MagicJack, choose a telephone number, and assign enhanced 911 (E-911) location data.

After initializing the MagicJack, I was ready to place a call. I was impressed to find that it is no different than dialing the telephone through traditional phone lines; and the sound was impressive save a little background static. And, I enjoyed making unlimited long-distance calls to friends and family.

VOIP Limitations
Like all VOIP telephony these days, MagicJack phone service won't be available if your electricity goes out. And most frustrating for MagicJack users, since January 2008 MagicJack has repeatedly promised that their engineers are "working on" rolling out phone number portability so that users won't have to make the painful switch to a totally new phone number. Unfortunately, thus far we haven't seen any movement in that direction.

Despite MagicJack's few drawbacks, I still recommend this leading VOIP service for cheap, unlimited long-distance calling if nothing more. With its low cost of $19.95 per year, it equals out to roughly $1.66 per month, saving those who call long distance often a bundle of money. Furthermore, the plug-and-play device really is easy to set up and get going. For more information on MagicJack, see their website @ www.magicjack.com.

To summarize, VOIP's benefits include:
1) Far lower cost for phone service
2) Unlimited local, national, and in some cases, international calling
3) No more confusing phone bills or surprise charges
4) Low-cost alternative to expensive cell phone minutes
5) All-inclusive features including call waiting, caller ID, voicemail

Learn more about this author, Daniel J. Gansle.
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