While going totally wireless is mostly a lifestyle or convenience issue, we'd say that going with Internet calling is mostly done with an eye toward reducing your monthly phone bill.
How much Internet calling will save you each month is somewhat dependent on your phone usage. However, savings of $300 a year is not unreasonable. Here's a summary of where VoIP calling will save you money:
- Your basic phone plan will be cheaper, and those savings will increase markedly if you are paying for features like voicemail, caller ID and call waiting.
- Domestic long distance is usually bundled in at no cost.
- Many plans also include international long distance to Canada and parts of the Caribbean. Some even include parts of Europe. In any case, international long distance rates are far cheaper with Internet calling.
- Most providers let you call other subscribers anywhere in the world at no additional charge.
- Taxes: The government considers Internet phone service to be data transmission as opposed to voice. This distinction means lower fees and taxes for you.
- Do you travel for business or spend time in a vacation home? You can take your VoIP service anywhere there is a broadband connection, so there isn't a need to pay for another line or for outrageous hotel room phone charges.
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| Important Tax/Fee Update! |
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As of July, 2006, the government will no longer collect the 3% federal excise tax on telecommunications. However, at the same time, VoIP providers will now be required to contribute to the Universal Service Fund, which helps subsidize service in rural and low-income areas. The contribution rate for this fund varies by quarter and can even vary by VoIP provider (because it is based on interstate call percentages). Initially, however, it is expected to be about 6.8%, and we have updated our tax/fee calculations accordingly.
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Unlimited calls to more than 60 countries*
Local & long distance calls to U.S. and Canada
* Vonage World only; calls to cell phones may be excluded. Vonage World. $14.99/month for the first 6 months. Basic plan 3.9¢ per minute over 500. Both plans require one-year agreement.
Now Includes Calls to 70 Countries
Local & long distance calls to U.S., Canada & Puerto Rico
Unlimited plan offers free calls to landline numbers in dozens of countries around the world. Calls to mobile numbers included for some of these destinations.
As low as $14.95/month with commitment
Local & long distance calls to U.S. and Canada
Pay monthly or save more by either prepaying for a year or paying monthly on a one or two year contract. 2¢ per extra minute on outgoing calls for exceeding 5,000 minute in a month.
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