Internet telephone service is inexpensive second line

For the past week or so, the phone on my desk hasn’t been plugged into its usual wall jack. Instead, it’s been plugged into a little white box that routes my calls over the Internet.

Most of the people I’ve called can’t tell the difference.

By Michael J. Himowitz
The Baltimore Sun

http://seattletimes.nwsource.com/html/businesstechnology/2001906710_btsoho19.html

Traditional phone companies are worried about these boxes because they represent cheap and — so far — unregulated competition, on top of the business they’ve lost to wireless carriers.

The Packet8 http://www.packet8.net/ service I’ve been testing charges only $19.95 a month for unlimited local and long-distance calls anywhere in the United States and Canada. The package includes voice mail, call waiting, call forwarding, 3-way conferencing and Caller ID. That’s about $10 a month less than a standard land line with no long-distance or added features, and $30 a month less than any phone-company package that includes unlimited long distance.

How good is it? Certainly close to being ready for prime time. There are still enough shortcomings to make it unwise to give up your traditional land-line service. But for a second line in a home office, or for a college student (particularly one overseas), it’s worth a look.

The technology, known as voice over Internet Protocol (VoIP), uses a scheme known as packet switching, which breaks down the voice signal into digital ones and zeros into small bundles called packets. After being transmitted over the Internet, the packets are reassembled on the other end.

Although early Internet calling required at least one party to use a computer, companies such as 8×8, Vonage and AT&T have VoIP plans that eliminate the PC altogether

The plans are gaining popularity with businesses because they can eliminate traditional, internal phone wiring and cut long-distance charges. But they’re also starting to impress the consumer market.

The Packet8 service I tested was created by 8×8 Inc. of Santa Clara, Calif. It requires high-speed cable or DSL service and a router.

When you sign up for a plan, 8×8 sends a terminal adapter (the white box) that plugs into your router on one end and any standard phone on the other.

Here’s where the first cool wrinkle comes in — you can choose your own area code. This primarily affects people who call you: If they phone you a lot, it might make sense to pick their area code so their calls will be local. The downside is that anyone who phones from your own locality has to make a long-distance call.

Setting up the phone was a snap. After hooking up the terminal adapter and an old phone, I dialed a Packet8 access number, entered a confirmation code and that was it.

When calling other land-line numbers, the voice quality was good — not quite the same as a regular connection but much better than most cellphones.

There is a barely noticeable delay between the person speaking and the person listening via a land line. On calls to cellphones — which often produce their own lag — conversation was possible, but the dual delay made it less comfortable.

Packet8 is less than ideal in another way: You can’t use your home’s extension phones unless you disconnect the house wiring from the phone-company line at the terminal block. But you can use a cordless phone. I plugged in a Vtech 5.8 GHz cordless phone and had no trouble with calls anywhere in the house.

Copyright © 2004 The Seattle Times Company