Well, after eight uneventful months, Vonage and I are parting ways.  Perhaps not the most auspicious way to start off a blog about VoIP but I’m being honest here. I’m not going to go into a big rant. Flame throwing just isn’t my style. I don’t hate Vonage. The service just wasn’t financially making sense for me. The phone usage in my business isn’t enough to warrant a fixed monthly plan, even one as low as $24.99. Plus in my area the call quality wasn’t pristine. And some people do get excellent voice over Vonage. But I generally experienced crackling and lag on most calls.

If anyone has comments on Vonage quality in their area, let me know.

From the Vonage forums, it’s clear that call quality varies tremendously from region to region. My advice is that if the VOIP service, Vonage, SunRocket or whatever, isn’t what you expect, try something else. The VOIP marketplace is growing by leaps and bounds, and as a consumer you should shop around.

But now that I’ve done Vonage, it’s time to move on over to other VOIP solutions. Skype, SightSpeed, and Gizmo are the free ones on my radar and make the most sense for me given my business.

Vonage users can now receive local traffic reports from their Vonage phone by dialing 511. The coverage is something like 30 511 systems in 26 states. Vonage now also provides local weather the same way. Dial 700-WEATHER and then enter a 5-digit zip code. Kind of cool. Andy Abramson has some thoughts on it, and Don Rosenbaum of FierceVOIP suggests that Vonage may be casting an eye towards a future mobile Vonage customer “People tend to need traffic and weather information when they’re in their cars; unless there’s a hotspot or mobile data connection” Hmmm.

If you’re thinking of cancelling Vonage, I suggest you read Tom Keating’s post on cancelling his Vonage service. He recorded the entire call with the Vonage customer service rep (what a rascal), and transcribed it.

All in all, don’t be surprised if Vonage does more than ask you a few questions to get you to reconsider your decision to abandon ship. Like Tom, I decided to cancel Vonage recently (after only about 6 months). My call quality was terrible. While I didn’t get into quite the same pressure cooker, the Vonage rep did try to get me to reconsider, offering a few free month’s service, a chat with tech support, etc.

The rep also tried to make me think I was making a big mistake, a bad decision. I was a little taken aback. When I return something in a store, often I’m asked for the reason for the return. Never do I get into a debate about it. Kind of unnerving.

I wonder if they’d have better success if they just said “I sorry you had this experience with Vonage. It sounds like you’re pretty frustrated. I see why you’d want to cancel. But is there any way I could get you to reconsider? Would you be willing to try a couple more things to fix your problems before cancelling?” And if the answer is No, then the answer is No. Thanks and goodbye.

As a little postscript to that Bye Bye Vonage post, I discovered that while Vonage customer support is 247, if you want to CANCEL their service you have to call during business hours (between 9 and 4:55 Eastern). I’m on Pacific time so it took me three tries. Guess they don’t want to make it too convenient if you plan on jumping ship!

But they were very polite, and even offered me free service for a few months to see if they could fix my voice quality problems. I was tempted, but like most people, I don’t want to spend my time friggin’ around with tech support trying to fix it. It ’s not good use of my time. I want it just TO WORK.

I opted to pay the $50 cancellation fee and just move on…

Here’s an idea from Michael at GroovyGreen.com who commented on my Three Tries to Cancel Vonage post. When he called to cancel his Vonage service, he had this great yarn prepared:

“This is what you do: Call their HELP line, go to the cancellation option and then wait. (Luckily, I waited about 5 minutes.) Next, as soon as the person gets on the line say, “Hello, My name is Michael and I would like to cancel my account because I am moving to another country.” This will immediately cause them to lose most of their script and go to Page 2. The kind woman on the other line then asked me if the move was permanent. I told her that I would be overseas for the next 10 years. She countered by saying that Vonage could be used anywhere, it was one of the advantages, etc. I agreed that the thought had crossed my mind, but unfortunately I was moving to a place where Internet service was not allowed. She asked if she might know the location of this country. I told her Ethiopia. She asked if there were any towns nearby that might have Internet access, I told her no, because I was moving to a monastery and it was 100 miles away from the nearest town. Very remote. She became quiet and then asked if there was anyone living in the U.S. that could use the account while I was gone. As this point, I was like, ‘Jeesh…’, but I went on, “No, there’s nobody here in the U.S. I could transfer this too. That’s part of why I’m leaving the country. My family has passed away, my dog just died, and I just don’t value material possessions as much as I used to.’

She got started on canceling my account….”

In an article this week on TMCnet, the research firm TeleGeography reported that US subscribers using VOIP services rose 18 percent in the last quarter to 18.2 million with Vonage being the largest provider with 1.95 million subscribers. Why are they still the biggest?  Massive media campaigns on the web, TV, radio, and sporting events helps…a lot. And don’t forget the catchy jingle and celebrity endorsements. But all that stuff just gets the consumer to the web site (retail sales excluded). What happens after that?

Of course once the consumer turns into a subscriber, keeping them is a whole other story. This blog, as well as many others, has touched on what appears to be widespread customer service problems. In fact, I still get responses to a post back in September on the runaround I received when I wanted to cancel my Vonage service. And my story wasn’t even one of the crazier ones. (Check out Tom Keating.)

Since cancelling Vonage in August, I’ve been keeping busy blogging about the a wave of emerging voice over Internet services. I haven’t applied for any other national broadband phone service, like Primus or Shaw Digital Phone, in my area. I’m happy trying various softphones and of course my PhoneGnome.

But, I decided to take a fresh look at the Vonage web site and see if they are doing anything differently. In my opinion, for all their faults once they’ve got you, Vonage does a lot that’s right.

1) Clear description of services/plans above the fold, with enough text to explain what the plan is all about without clicking 

2) Site navigation is SIMPLE: tabs to products, services, availability and features are clearly identified

3) Upfront explanation of device bundles, including what’s free, what’s extra, and information to help figure out which device is right for me 

4) Special promotions, deals, and other creatives are below the bread and butter products. This is important (I think). To me this says that our products are the most important thing we have to offer, not the limited time sweet deal.

Packet8, Lingo or SunRocket just don’t communicate as well. These three providers all had the basic residential and business plan info above the fold, but I found it took more clicks and more reading to find the additional information I needed. Comcast Digital Voice was the most annoying. Perhaps because they are basically an entertainment company, they feel they have to “entertain” me while selling phone service. A whole bunch of flash nonsense. Stupid. And they won’t tell me anything about their products/services until I tell them my address and zip code.

I guess my point, to make a long story even longer, is for emerging products and services to learn a few lessons here. Speak clearly to your audience. Communicate your product and services upfront. Explain what’s included (device bundles, software) and what’s extra BEFORE the sign up process. I don’t want to see a small asterisk footnote that says the service works with the purchase of $75 VOIP adaptor right at the very end. And finally, don’t hide behind walls of flash animation and annoying forms that make users type a bunch of stuff.

I saw a post yesterday on the Motley Fool called “Avoid the VOIP Value Trap“. It’s reader is the investor looking for the “next home run stock”. The gist of writer Dave Mok is to avoid investing in VOIP like the plague. “Internet telephony is a novel application that leverages existing infrastructure to deliver comparable services at lower prices. Technological developments like this can help companies improve margins and offer better value to consumers, but they don’t necessarily create substantial new value worthy of investment.”

Hey, well he may be right. I’m not an investor so I don’t know if this is news or not (I suspect not). Consumer value just can’t get no respect…Well I think there’s more to VOIP than Vonage–that is to say there’s more to VOIP than just cheap phone calls.

With all the hubub around Vonage and other national VOIP phone companies like them, I sometimes slide into the trap of thinking VOIP is all and only about saving money, unlimited long distance plans, and the like. And of course it’s not. I was reminded of a conversation I had in December with Talkster CEO James Wanless who called the “race to zero” a lousy business model. The fact is there are many new ventures using VOIP as a platform to offer services that traditional phone companies can’t. Look at Jangl offering phone privacy for social networking sites. Look at TalkPlus with a second number for your cell phone. Look at iotum TalkNow for Blackberry users. MobileStick from Bridgeport Networks, SightSpeed video calling, GrandCentral, PhoneGnome, Fring, Jajah, Gizmo, Truphone…the list is getting longer by the day. To say that “VoIP offers no new killer applications or buzzworthy innovations” is a little harsh. Investor value? No idea. Consumer value? You bet.

From: www.quickstartvoip.com

Free Internet phone service lets you to make free long distance calls over the Internet in three different flavors. The first enables you to make calls from one phone to another as long as both are connected to broadband lines. The second allows you to make calls from one computer to another and the third makes calls possible from a computer to a traditional phone.

But, there are limitations to free services. Let’s take a look.

Phone-to-phone service providers require that you purchase their telephone adaptor (or ATA). As long as you are calling other people who have purchased the same equipment, the call is free. PhoneGnome is one such service. The PhoneGnome adaptor costs about $119. You literally plug it in to your broadband connection and to your regular phone, it configures itself, and you are good to go. You can start calling other PhoneGnome users anywhere for free. You don’t have to switch phone numbers or change telephone companies. Vonage, Packet8, AT&T CallVantage, and others you may have heard of follow the same model.

PC-to-PC service providers allow users to make free calls from one PC to another. Both parties need a PC with an Internet connection and some software easily downloaded from the Net. However, for a call to ring through, both parties have to be online at the same time and have the same, or at least compatible, software. By adding voicemail to a PC-to-PC service though, callers can leave messages even when you’re not online. Unfortunately, voicemail may or may not be free.  Skype, Gizmo Project, and FWD are three typical PC-to-PC services.

PC-to-phone services let you to call a regular phone numbers for free. However, you may be restricted to the locations that you can call or the length of the call. VoipBuster, for example, provides free calls from your PC to landline phones in about 30 countries. The restrictions are a little bit complex, but free is free…Lucky for us, the bigger software-based phone companies are trying hard to entice users so there’s also a current wave of promotions trumpeting free calls to landline phones. Skype for example offers free calls to any phone within North America until the end of the year. Gizmo offers free calls to phones in 60 countries as long as both parties maintain an active Gizmo Project account.

In all of these cases, free Internet telephone services make money by selling credits for calling minutes to landline phones or mobiles, long distance destinations, or phone numbers not on the same VOIP service. Rates are low, however, and you can expect to save significantly over traditional long distance companies. For regular phone users to call you on your free Internet phone account, you must “buy” or subscribe to a conventional phone number. Most services allow you to buy a phone number in different locations, so if your family is in the UK and wants to phone you regularly, you can buy a local UK number that they can call for free or inexpensively.

Just saw this on the mouse-phone, no wait, phone-mouse from Genius. The Genius Navigator 380 apparantly supports Skype, MSN, Yahoo!, GoogleTalk, QQ, and AIM. When you get a voice call over IM, your mouse, er rings. Just snap it open and take the call. Kind of reminds me of Max Smart’s shoe phone.

Reprinted with permission from: www.quickstartvoip.com

When shopping around for a VOIP phone, no doubt you’ll come across buzzwords like: softphone, SIP phone, IP phone, and Internet phone.

Do all these terms mean the same thing, or is there a difference? Let’s take a look.

VOIP phone or Broadband phone: A handset used to make VOIP calls. A VOIP phone has an Ethernet port (RJ-45) instead of regular phone jack (RJ-12), and they connect directly to a broadband Internet modem. A VOIP phone does not require a computer or softphone application to make or receive calls. A high speed Internet connection and subscription to VOIP phone service is all that is required. A SIP phone is a type of VOIP phone.

SIP Phone: A VOIP handset that complies with the SIP standard for voice over IP. SIP is the latest open standard, succeeding H323 standards. Bottom line, SIP compatibility is good. Phones that compete with SIP use proprietary signaling protocols for voice over IP. SIP softphones are VOIP software applications that comply with SIP standards.

IP phone: An umbrella term but used to mean any phone that can be used on an IP network (like the Internet). An IP phone may comply with either proprietary or open standards for voice signaling. An IP phone doesn’t have a RJ-12 connector like regular phones.

Internet phone: This term is used pretty loosely and depending on the context can mean the same as IP phone.

Softphone: A software application that lets you make calls over the Internet using the mouse or keyboard to dial phone numbers. To use a softphone, your computer must have an sound card, plus a speakers or headset, and a microphone. A USB phone can take the place of headset and microphone. Softphones are often free to download. Free VOIP software such as Skype and Free World Dialup are two popular choices.

USB phone: A handset that connects to the USB port on your computer. It is used for convenience when dialing from your computer, but it requires that a softphone application be installed first. Instead of using the softphone with a headset or microphone, the USB phone looks and acts like a regular phone and keypad. USB phones require driver software to be installed on the computer.

WiFi phone or WLAN phone: A handset used for making wireless VOIP calls. It has a  built-in WiFi transceiver unit instead of an Ethernet port. When you talk over WiFi, the phone connects wirelessly to a WiFi base station and from there to the Internet and a remote VoIP server. A computer or softphone is not required to make and receive VoIP phone calls. All that is required is access to a WiFi base station. Many cell phone companies are developing handsets with WiFi capability. This means you can make calls on the regular cell phone network and make VOIP calls on a local WiFi network (called a WiFi hotspot).

Skype phone: A handset that is much like a USB phone, except that the softphone application used to make the calls is Skype. A Skype phone can only make calls using the proprietary Skype phone software running on your computer. Linksys recently announced the release of its CIT200 wireless Skype handset which makes using Skype convenient from anywhere in the home.

Web phone: A marketing term that has been used to mean many things, both softphone and IP phone-related.

Net phone: Same as IP phone

Computer phone: See softphone, PC phone or USB phone.

PC phone: See computer phone, softphone or USB phone.