Have you seen them? The commercials about Net phones and how they can save you a ton of money on long-distance? Okay, so now you want to know how it works, what's in it for you, are there any hidden charges that will have me paying the same if not more per month than my current, reliable land-line phone, Am I going to sound like E.T. attempting to phone home on this thing and what are they not telling me that could nix the whole deal? Well, here you are.

How it works:

VOIP or Voice Over Internet Protocol, is just that. Your voice is sent in what are known as packets, accross the internet and re-assembled at the receiving end. Kind of like that machine in the "The Fly", only a lot more stable (no incects messing up your DNA or anything). You plug your internet connection (which must be broadband, DSL or Cable) into your modem (as usual), you then plug the modem into your adapter, and then connect your adapter to your other devices (Phone, Fax, Computer).

Not that difficult, but since configurations vary from provider to provider,I urge you to check it out yourself.

What's in if for you:

Lower prices. Truthfully, VOIP delivers on it's promise of lower prices. There are taxes and fees, but they will only bump your final monthly bill about 2 to 3 dollars. Quality, still lags behind land line, but that is to be expected. What is not to be expected how far VOIP quality has come in a short amount of time. Many people never notice a difference between speaking to someone using VOIP and speaking to someone using land line technology (See "Net Phones Grow Up" by Jeff Betolucci and Tom Kortie, PC World, September 2005).

What Are They Not Telling Me That Could Nix the Whole Deal?

There are a couple of concerns with VOIP. One is that, with VOIP relying on an internet connection, if your internet connection is down for some reason, you have no phone. The other concern is 911. 911 systems and VOIP vendors have not been playing nice in the sandbox. Fortunately, E911 is being enforced by the FCC and all VOIP vendors must provide 911 service that rivals that of landline users by November 28, 2005. So, basically, the second issue is no longer an issue.

What's the difference between Net Phones and a Service like Skype?

Skype requires a PC for both users. It is PC to PC communication. There is no true "Phone", while Net Phone uses your phone and a portable adapter. The adapter can be taken on the road and used anywhere you find a high-speed connection. Skype is not a replacement for your current phone service, net phone is. You can bypass the phone company completely. You don't end up paying for services that the phone company charges you for, like voicemail, 3-Way calling, Call-Forwarding, etc.,; these fees are all covered in your $25-$40 a month for unlimited calls.

Economically, VOIP makes sense. You get comparable quality for a much lower price and more standard features. Hopefully this will help you make a more informed decision or at the very least help you decide if VOIP is right for you or your small/home business.