September 11, 2006
Does VOIP Jump the Generational Fence? I Think Not
Is VOIP a generational thing? When I told my parents about my great scheme to use VOIP for my business line and long distance calling, Mom gave me that worried look that says “Are you sure that’s not illegal?” You should try it, I cry! Vonage, my service of choice at the time, was only $19.95 a month. A simple calculation on my phone bill told me I was spending more that that on long distance every month, so it seemed a no brainer.
Then Dad says, why don’t you just use 10-10-YAK? Only 5 cents a minute.
That’s what my parents use. YAK is a dial-around service you can use for long distance calling. The charges appear on your regular phone bill so there’s no subscriber contract to deal with.
But Dad (I’m deflated now), YAK isn’t VOIP, and VOIP is COOL. VOIP is the WAVE of the FUTURE…OK well whatever.
Now I don’t know if it’s just my parents, but the idea of only paying for what they use on a regular old telephone makes total sense to them. Hooking up a Vonage phone adaptor to their PC and broadband modem to make phone calls does not.
But my Dad did get me thinking about this question of unlimited calling vs. pay as you go. If you ask the folks at SIPphone Gizmo Project, they’ll say that unlimited plans won’t save you money. Only paying for minutes you actually use will.
“A calling plan that involves unlimited calling is almost never in the best interests of the consumer. When you just pay for what you consume, you end up paying far less.”
It grieves me, but lets do the math. At 5 cents a minute, I would have to spend about 400 minutes calling long distance calls (6 1/2 hours) to break even with my $20 plus tax Vonage charges for unlimited calling. I spend way less than 400 minutes a month talking long distance, so (a) I was paying way to much at my telco before for long distance, and (b) I can do way better than Vonage.
Most VOIP long distance rates are around 2 cents a minute or less, so for me paying as I go makes sense (400 minutes at 2 cents/minute is $8)!
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