The claim for VoIP phones, aka internet phones, is that you can save a lot of money on your phone bills by using them rather than traditional phone services. But is that true?
Below I present the details of four internet phone service plans available in Canada so you can not only compare the different plans these VoIP phone service providers offer, but compare the cost of them to the phone plan you’re currently using. (All dollar figures are in Canadian currency.)
(If you are thinking of using an internet phone as a business phone, please read Is An Internet Phone Good Enough for Your Business? where I discuss the problems of internet phones.)
For your convenience, I've compared two internet phone service plans from each company presented here, a basic plan and a plan that may be more suited to a small business.
NetTalk Duo currently only has two plans; one Canadian and one American. The Canadian internet phone service plan includes a slate of features such as free calling to Canada and the U.S., caller ID, three way calling, and voicemail to email, and a free Canadian phone number and Canadian 911 service.
Cost: NetTalk Duo is a USB dongle that you purchase for $79.95 and connect to your phone and your internet router. Internet phone service is free for the first year when you purchase one, and each year after that costs $39.95.
The Duo can be purchased at a variety of Canadian retailers, including Zellers, BestBuy and Amazon.ca.
Vonage Internet Phone Services
One of Vonage's prime features is the ability to keep your own phone number.
Vonage World Canada – Offers unlimited local and long distance calls to Canada and the U.S., unlimited calling over 60 other countries, unlimited mobile calls to 15 destinations, and over twenty call features such as caller ID with name, voicemail, three-way calling, 911 dialing, call waiting and call transfer.
Cost: $19.99 a month for the first three months and $29.99 a month thereafter.
Currently there is no activation fee so the only additional charge is a shipping charge of $9.95 for the phone adapter for a total set-up cost of $29.94 for the first month of service.
Vonage Entrepreneur Pro – Offers 1,500 minutes of local and long distance calls to landlines & mobiles in Canada, the U.S. and Puerto Rico (with 4.9 cents per minute for additional minutes over and above your 1500 min allowance), a dedicated fax line, no network access or long distance admin fees, unlimited in-network or Vonage-to-Vonage calls wherever you are in the world and over twenty call features such as Voicemail, Caller ID, call waiting, and call forwarding.
Features such as a virtual number or additional lines can be added for additional fees.
Cost: $55.99 a month.
Currently there is an activation fee of $39.99 and a shipping charge of $9.95 for the phone adapter but the first month of service is free so the total set-up cost is $49.94.
Primus TalkBroadband
TalkBroadband Unlimited Service – Offers internet phone service and unlimited long distance to anywhere in Canada and the U.S. and over 18 features including call hold, call screening, speed dial, voicemail with email forwarding, last call return and conference calling.
Cost: $29.95 a month.
Business VoIP TalkBroadband Enterprise - Includes a phone number (from any of Primus’s 20 service areas), a basic directory listing, and 18 features such as extension dialing, native 911, call display, call hold, caller ID block, call forwarding and 5 way conferencing.
Cost: $26.95 a month (with a one year signup). Long distance rate at time of writing is 2.75 cents per minute in U.S. and Canada.
There is a $39.00 basic activation fee. Additional features may be added for additional fees.
Shaw Cable
Shaw's digital phone is a VoIP phone but runs over a dedicated network rather than over the "open" broadband internet. According to their website, Shaw Cable's "distinctive technology connects your business phone to the Shaw phone network, which is different from low-cost, Internet-based services. Managed networks, such as Shaw's, ensure a crisp, clear sound quality."
Business Phone - Offers a local line and a complete suite of call features including call display, call forward, three way calling, multi-line hunting, voicemail, enhanced 911 and one toll-free number (at six cents a minute). Features such as an audio conferencing line, distinctive ring and additional toll-free numbers are available for an additional fee.
Cost: $35.00 a month. Long distance calls are $0.04 a minute anytime to anywhere in Canada and the U.S. and to 50 international calling destinations. Installation is "complimentary where available".
Business Phone Plus - In addition to all the features of Shaw's Business Phone above, this calling plan includes 1,000 minutes of month of long-distance calling within Canada and the U.S. and one distinctive ring as part of the package.
Cost: $65.00 a month. Installation is "complimentary where available".
Would You Save Money?
The four internet phone service providers profiled above are certainly not the only internet phone service choices, nor have I presented every service plan that each company provides. But hopefully reading through the options presented here will give you a better idea of how the cost of an internet phone service stacks up against your "plain old telephone service" and/or to your cell phone fees.
