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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.

<< How Internet Calling Works Nifty Features of Internet Calling >>
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2 Free Cell Phones
A great way to save money on cellular service is to sign up for a family or shared plan. These offers are all free (or better) for two phones.


Compare Internet Phone Providers

Important Tax/Fee Update!
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.
Unlimited calls to more than 60 countries*
Vonage World$25.99
Basic 500$17.99
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
World Max$23.95
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
Residential Freedom$19.95
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.
  • The digital nature of VoIP enables a wide variety of features. At a minimum, these plans include voicemail, caller ID, call waiting, call forwarding and online account management. See the provider's site for a full list of features.

  • Important information about 911 calls: Emergency (911) calls can be made via the VoIP providers we compare on MyRatePlan. At the same time, most VoIP services are mobile, meaning you can actually take your service with you on business travel or when you go to a vacation home, for example. In those cases, the address at which you are using the VoIP service will be different than your primary home (billing) address. Therefore, it is important that you follow your provider's instructions about registering the physical location where you will utilize their service.


 

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