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The number of people who turned in their regular landline phone for an internet phone more than doubled last year. Nine percent of U.S. homes now get their phone service over the internet, taking advantage of this brand new technology. But are they taking advantage of all the hidden savings that could come along with it? Well, this morning we are joined by consumer correspondent Elizabeth Limy who is now back from maternity leave and looking great in Gaithersburg, Maryland to help walk us through the ABCs of this phone. You look great. Elizabeth, great to have you back.
Hey, thank you. Thank you so much. Alright, well there are two ways to talk over the internet. One is using a basic little converter box like this. You can turn your regular home phone into a web phone. You can also talk right over your computer using the speaker on the computer or using a headset like this. And either way, you will probably lower your phone bills.
This may look like a traditional telephone but actually it's a money-saving internet phone. "Hey, how are you doing?" New Yorker Ian Warren uses the web phone company "Vonage". For $14.99 a month, he gets 500 minutes to keep in touch with family and friends all over the world. "I think it's about $600 a year that I am saving by using Vonage over a landline phone."
We shopped around and found a traditional phone company charging $43 a month for unlimited local and long-distance plus typical extras like call waiting. A similar service from a cable company was advertised at $85 and up, because you have to purchase premium TV channels to get the phone service. The leading company offering internet calling charges 25 bucks a month for unlimited calling. That's on top of whatever you pay for your high-speed internet connection. And finally there is computer calling where you talk over your computer. If the person you're calling has the software on their computer too, even international calls are free. Or you can pay $2.50 a month for unlimited calls from your computer to regular phones.
"I think it's a foregone conclusion among telecom companies that at some point, all telephone calls are going to go over the internet."
With internet calling, you can even sign up for what's called a virtual phone number. Your friends and family dial you on a local area code and pay local prices even if you live across the country from them. "That’s across the board. It's been a good thing for consumers." But before you unplug your landline you should know that not all web phones come with 911 services or you may have to register your address so emergency crews will be able to find you. Plus if there is a power outage, your phone goes dead too. But Ian Warren likes his web phones. "To me, it's a no-brainer." and loves the savings.
When web phones first came out, people complained that the ...
