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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Now Includes Calls to 100 Destinations
Local & long distance calls to U.S., Canada & Puerto Rico
One free month. 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.
Prepaid Annual Plan (Save $60)
Local & long distance calls to U.S. & Canada
Annual plan prepaid at $239.99 per year ($19.99/month). Freedom Unlimited Global plan available that includes a variety of international 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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