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ACCC home > For consumers > Communications > Internet phone services (VoIP)

Internet phone services (VoIP)

What is VoIP?

VoIP (Voice over Internet Protocol) is a relatively new technology that allows you to use your computer's network connection as a telephone service.

VoIP technology is growing in popularity. Calls using this technology are cheaper than those on the normal phone network, particularly for long distance and international numbers. As broadband internet access becomes more widespread, VoIP is also becoming an increasingly easy and convenient way to communicate.

You need a computer to use almost all VoIP services. Some may require special software and equipment, such as microphones.

Some services may offer features such as conference and video calls, but might not be able to offer some traditional phone services. 

Things to be aware of if you are thinking about VoIP

Because VoIP technology works differently to a normal phone service, there are several things you should think about before committing to a VoIP service.
VoIP services are not the same—there is no one type of VoIP service. There is considerable variation among VoIP services as to the features they offer, the equipment required to operate them, and the way they operate.

Call quality

Many VoIP services offer higher quality calls than you would expect from a mobile phone or, in some cases, a land line. However, the quality of VoIP calls can vary more than those on other kinds of phones and there are other factors to consider too.  For example, quality of VoIP will be affected by the amount of congestion on your broadband network and the quality of the  equipment you are using, such as your headphones and microphones.

Overall cost

VoIP calls are often cheaper than conventional calls made using a telephone, but you should take into account any set-up costs, including any extra equipment you may need. If you want good quality audio, be prepared to account for the cost of good quality accessories.

Reliability

Have you considered how you can make calls if you have a power outage or your computer is out of action? In these circumstances, you will not be able to rely on VoIP. If you do not have an alternative such as a mobile, you might consider keeping your current telephone as backup.

Emergency calls 

Not all VoIP services allow you to dial '000' in an emergency. You should make sure you know the limitations of your service and plan what you will do in an emergency.

Limitation on phone numbers 

Some VoIP services providers do not allow you to make calls to normal phone numbers. Some do not allow you to receive calls from normal phone lines. You should check with the service provider.

Technical requirements

To work effectively, VoIP depends on components including your phone, your home network, your broadband connection and your VoIP service provider. The equipment required for different services can vary. Check that you have the technical requirements for the service you want to subscribe to.

Customer service and support 

VoIP is a relatively new technology. If you think you will need some extra support, check that your service provider has a helpline and sound complaint handling policy.

Misleading or deceptive claims by service providers

The marketing of VoIP products and services can be confusing but you have a right to expect that a business will be truthful in its advertising. Just like in any other industry, it against the law for a telecommunications company to mislead you or deceive you about its products or services. If you think you have been misled about a VoIP service offering, you can report it to us.

VoIP security

Because VoIP calls pass through different service providers, there is a risk that your communications could be monitored, similar to that of an email travelling the same path. This means you should take the same precautions when communicating sensitive information in a VoIP call in the same way you would for an email or internet transaction.

Protect yourself

VoIP is a great tool for talking to other people, but you need be alert for scams and exercise the same caution you would if you were on the telephone or emailing. If you send and receive any information via a computer modem, you need to ensure you protect your computer from harmful viruses.

You can:

  • install anti-virus software and make sure you keep it up to date
  • use a firewall
  • check email attachments for viruses before you open them.

If something looks suspicious, do not open it. Find another way to check the information with the person who sent it.

Visit our SCAMwatch website for more tips on how to recognise and protect yourself from scams.

Where can I get more information?

There are also some great fact sheets and brochures developed by other government agencies and industry bodies that can help you learn more about VoIP and all your other telephone, mobile phone and internet services.

If you have questions or want to know more, you could explore the following government and industry websites:

Communications Alliance Ltd (formerly ACIF)

Website: www.commsalliance.com.au
You can also download the booklet So you want a VoIP phone Service? from this website.

The Department of the Broadband, Communications and the Digital Economy

Website: www.dbcde.gov.au

The Australian Communications and Media Authority (ACMA)

Website: www.acma.gov.au

Telecommunications Industry Ombudsman (TIO)

Website: www.tio.com.au

Related topics on the ACCC website

Phishing, mishing, vishing & other scams in For consumers
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