What is VoIP

Internet Voice, also known as Voice over Internet Protocol (VoIP), is a technology that allows you to make telephone calls using a broadband internet connection instead of a regular (or analog) phone line.

VoIP converts the voice signal from a telephone into a digital signal that travels over the internet, then converts it back at the other end so you can speak to anyone with a regular phone.

VoIP may also allow you to make a call directly from a computer using a conventional telephone or a microphone.

Traditional phone calls travel through wires and elaborate switching equipment that can be very expensive for phone companies to set up and maintain.

You won't notice a difference when your phone rings and you receive a call that comes through a VoIP service.

Does VoIP change the way I make a phone call?

Depending on the service you subscribe to, one way to place a VoIP call is to pick up your phone and dial the number, using an adapter that connects to your existing high-speed internet connection. The call goes through your local telephone company to a VoIP provider. The phone call goes over the internet to the called party's local telephone company for the completion of the call. Your computer does not have to be turned on to make a call this way. Your high-speed modem will need power to operate, which could cause problems during power outages. Some companies offer a system that includes a battery backup.

What about 911 service?

Some VoIP users could encounter dangerous delays when making 911 calls. With a regular phone network, 911 calls go directly to the right 911 dispatch centre. Furthermore, each call provides automatic address and telephone number information to ensure emergency personnel will find callers, even if they are not able to speak.

These 911 features aren't available with internet telephone services. With internet phones, 911 calls go first to a third-party call-centre operator, before being transferred to dispatchers in their location based on information users provide when they sign up for the services. That means callers may be sent to the wrong dispatcher if their personal information has not been

updated with the internet service provider.

As well, if a caller is unable to speak, or if the call is disconnected, the operator may not have automatic location information to give to 911 dispatchers.

The CRTC in 2005 ruled that VoIP providers had to advise customers of their 911 limitations at least once per year.

What kind of equipment do I need?

A high-speed internet connection. This can be through a cable modem, or high-speed services such as DSL or a local area network. You will need a special adapter that plugs into your high-speed connection. Your phone plugs into the adapter and you're ready to go — and your computer does not have to be on to use VoIP phone service.

You can use a regular phone with the adapter. If your VoIP service is provided through a cable modem, it's fairly simple to configure the phone jacks in your home so you can also use them to make calls on your VoIP account.

There's usually no need to buy a VoIP-specific phone, except for services like Skype, which not only route phone calls over the internet, but are also accessed only through the internet. Skype phones allow you to make calls on your Skype account as long as you can access any wireless internet network.

Is it cheaper than traditional telephone service?

Internet telephony services typically mean customers see significant savings on their phone bills. Often, calls within North America are free — or a couple of cents a minute after you use up a certain number of minutes. Rates for international calls will vary from a few cents a minute to around 25 cents a minute, depending on whether you are calling a traditional landline (cheaper) or a mobile phone (more expensive).

Consumers can expect to pay 25 to 40 per cent less on their monthly bills for VoIP service compared with traditional analog service.

VoIP also allows for phone services such as call display, call forwarding and call answer. Your service may allow you to talk to several people at the same time.

In addition, connecting phone calls over the internet opens the door to advanced communications services that tie voice together with e-mail, instant messaging and videoconferencing. You can use your VoIP service anywhere in the world, as long as you have your VoIP adapter with you. That means if your VoIP account is in the 250 area code, you could be in South Africa and place a call home to Victoria and not face long-distance charges.

How are VoIP phone numbers assigned?

Providers of internet phone service will allow you to keep your regular phone number. Some services will also allow you to choose your area code. For instance, if you live in Toronto but make a lot of calls to Montreal, you can choose a number with a Montreal area code, further reducing your long distance charges.

Who regulates VoIP services?

In 1999, the Canadian Radio-Television and Telecommunications Commission decided that it would not regulate the internet. The broadcast regulator ruled that "the Canadian New Media industry is vibrant, highly competitive and successful without regulation."

But in May 2005, the CRTC said it saw essentially little difference between traditional phone service and internet-based telephony, suggesting that the technology be subject to the same kind of regulations. The CRTC also said VoIP calls that are local in nature should be treated like traditional local calls and subject to the rules governing local phone competition, which meant the former big phone monopolies would be prevented from setting artificially low rates for local VoIP services, at least until the new companies in the market had captured 25 per cent of the market.

A year later, the federal government asked the CRTC to re-examine its policy framework on VoIP, saying "it is in the public interest for the CRTC to reconsider its decision."

And on Nov. 15, 2006, the government ordered the CRTC to change its ruling.

"We firmly believe that eliminating unnecessary economic regulation will stimulate competition in this new and fast-growing market. It will mean lower costs, fewer regulatory proceedings, and more competitive markets," Maxime Bernier, the federal industry minister, said.

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