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Internet phone services (VoIP)

What is VoIP?

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

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

There are two main types of VoIP services: phone VoIP and computer VoIP.

Phone VoIP

With phone VoIP, you speak into and dial from a handset, so using it is very similar to using a normal phone service.

Different ways you can use phone VoIP include:

  • connecting your ordinary home phone to a special VoIP modem
  • connecting your ordinary home phone to an ordinary modem using an adaptor
  • getting a special modem with a built-in phone handset.

You don’t need your computer turned on to make or receive calls with these types of services.

Computer VoIP

This kind of VoIP service runs through your computer using a software program and can connect through any type of internet connection (including wireless internet).

To make VoIP calls, you will need a phone handset that plugs into your computer or a microphone (if this isn’t built into your computer).

Some VoIP programs allow you to make video calls if you have a camera.

There are many types of computer VoIP services offered on the internet and some allow you to use the service for free if you are calling another person that is also using their software.

Things to be aware of before getting a VoIP service

Because there are many types of VoIP service, there several things you should think about before committing to a phone VoIP service or downloading any VoIP software on to your computer.

Emergency calls

Almost all providers of phone VoIP are required to ensure that you can call ‘000’ free of charge. However, there are some exceptions so you should check that the provider offers this service.

Reliability

Phone VoIP services do not work in a power outage, which means that if you lose power, you will not be able to contact emergency services. This is the same as cordless phones. You should think about whether this is acceptable to you and whether you have an alternative service as a back up, such as a mobile phone with adequate battery.

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.

Call quality

Usually phone VoIP services are of a similar quality to that of an ordinary landline or mobile service; however, you should confirm this with your provider.

Customer service and support

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

Limitation on phone numbers

A small number of VoIP service providers do not allow you to make calls to certain phone numbers such as those beginning with ‘13’ or ‘1800’, or charge different rates than usual for these calls. Check with the service provider to see whether these numbers are available on the service you are interested in.

Effect on your data limit

VoIP may also count towards your internet download quota, so be careful that you do not inadvertently exceed your data limit.

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.

Take basic precautions such as:

  • install anti-virus software and make sure you keep it up to date
  • 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 sender.

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

Further information about internet and VoIP services

If you have questions or want to know more, explore the following websites:

Department of Broadband, Communications and the Digital Economy

Australian Communications and Media Authority

Communications Alliance Ltd

Telecommunications Industry Ombudsman

For more information

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Related topics on the ACCC website

Wireless broadband
Got a problem or complaint about your internet service?
Things to know before you get a broadband internet service
Entering a contract in For consumers

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