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In this section:
Long Distance Service
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BEST BUYS
Internet Phones
THESE DAYS you don't have to be a PC wizard to use Internet phone service. In fact, you don't even need a computer. You can make a phone call that travels over the Internet right from your telephone.
"The technology has evolved from being a PC-to-PC service to the point where people can talk to each other on the telephone and not even realize they're using the technology," assures Jeff Pulver, president of Pulver.com, an Internet technology research firm.
Already there are roughly 300 Internet telephony service providers (ITSPs) -- including Biztrans, World Quest Networks, Access Power and AT&T's Connect 'N Save -- offering Internet calling via telephone or PC. (You can find a listing and links to ITSP rate information at the iLocus Web site.) The number of providers is all the more impressive considering Internet phone service began as recently as 1995.
Today, more than 15 million users make Internet calls. By 2002 Jupiter Communications estimates that U.S. Internet phone revenue will reach $1.3 billion and represent nearly 3% of all long distance calls made from the U.S. That's up from an estimated $150 million this year -- and a market share of less than 1%.
What's attracting consumers? Big-time savings. Because Internet telephony providers circumvent the local phone companies, they don't have to pay local access fees. This is the charge other long distance providers must fork over to the Baby Bells for carrying the phone call those last few miles to your home. These local access fees eat up about 35% to 45% of traditional long distance providers' phone revenue. Not paying those fees means huge savings for Internet telephony providers, which then pass along the savings to customers.
As a result, callers using the telephone to make Internet calls can dial anywhere in the U.S. for as little as 7.9 cents a minute. The average "traditional" domestic long distance call is 10 cents a minute. Use your PC to make the call, and you won't pay a cent. No matter whether you call San Diego or Singapore.
Set-up expenses for PCs can be minimal, too. Most come equipped with the sound cards, modems and speakers you need to make a call. But if you have to upgrade your old clunker, expect to shell out $100 to $150 for those accessories. A basic microphone, not usually a standard feature, costs as little as $5. If you want to see the person on the other end of the line, you'll have to spend about $150 on a camera. As for the calling software? Most Internet phone companies are giving it away. Just download it off their Web sites.
What's the catch? Don't expect to hear a pin drop every time you call. Internet calls range from crystal clear to murky. That's because a traditional call sends analog sound over phone lines. With Internet calls, so-called gateways pick up sound, then digitize and compress it into "packets" of digital data that are scooted over the Internet. When they near their destination, packets are switched back to analog information, then sent to local phone lines.
Phone-to-Phone, PC-to-Phone or PC-to-PC?
If you're primarily concerned about easy, reliable service, then phone-to-phone Internet calls are your best bet. They're easy to make. Just dial a few more digits to access your ITSP. The sound quality is better than calls made with a PC, and you can call anyone at anytime.
By comparison, PC-to-PC calls require callers and recipients to use the same ITSP if they want to communicate. And you generally have to schedule times to talk. "PC-to-PC is not practical for everyone. The sound varies depending on your [computer]. And the Internet doesn't work all of the time," agrees Mike Mathiessen, founder of PC-to-PC service 1st Family.
So, what do calls made with a PC have to offer?
Free calls if you don't use a phone at all. That's because 1st Family and VocalTec, which make money operating gateways or as Internet service providers, can route calls directly onto the Internet without incurring, or charging, customers any fees. You'll have to pay something for PC-to-phone calls, but rates are slightly less expensive than phone-to-phone dialing -- a couple nickels less per minute than if you use your phone.
Internet Telephony Service Providers
IDT
Services Available: Phone-to-Phone and PC-to-PC
If you've ever used a calling card, then you're ready for Net2Phone Direct, IDT's phone-to-phone service. Simply dial your personal Net2Phone Direct card and pin number, area code and number, and you've made an Internet call.
We tested the service on local chats in Manhattan and on long distance calls to North Carolina, California, Italy and London. The first few seconds sounded slightly fuzzy -- think of a tape player with not-quite-new batteries. But then our calls cleared, and it was impossible to tell the difference from a traditional call.
Rates for domestic calls are five cents a minute from 62 cities where IDT has its own gateways -- from New York to San Francisco, Los Angeles, Charlotte, Seattle, Atlanta and Hackensack, N.J., where the company is headquartered. Domestic calls outside those cities cost 7.9 cents a minute. Overseas rates are posted on the firm's Web site.
Though rates are low, Net2Phone does round calls to the next minute. (That means if you talk for 80 seconds, you pay for two minutes of call time.) And you'll also pay a 99-cent monthly fee for the phone-to-phone service.
If you want to make PC-to-phone calls, you can download Net2Phone 9.0 off IDT's site for free. Domestic calls are a low 4.9 cents a minute and there's no monthly minimum for PC-to-phone service, but calls are rounded to the minute. Overseas rates are posted online and tend to be low. All overseas calls back to the U.S. are a flat 10 cents a minute. An IDT official called us via his PC and the sound was remarkably clear. Of course, if you use a standard modem, you may have some delay, which is true for most PC-to-phone and PC-to-PC calls.
If you've got Netscape, expect to hear more about Net2Phone 9.0. IDT just signed a deal to include access to its PC-to-phone service on the Internet browser's toolbar. That should help boost IDT's one-million customer base. Net2Phone isn't available for calls on a Macintosh.
Delta Three
Services Available: PC-to-Phone and Phone-to-Phone
Delta Three's PC-to-phone service had some background hissing sound and a slight sound delay. But the dissonance was reduced when a company representative who called us lowered his microphone settings. Our only complaint? As with IDT, the service is not available for a Macintosh, though the company says it is working on a Mac version.
The phone-to-phone service sounded perfectly clear, and we give kudos to Delta Three for using six-second billing increments instead of rounding calls up to the next minute when calculating your bill. The company doesn't charge a monthly fee, either.
Domestic calls cost 10 cents a minute using your PC and 15 cents for phone-to-phone calls. But international calls will reap you the biggest savings. Calls to England cost the same as a domestic call. Calls to Hong Kong cost just 17 cents a minute using your PC or 20 cents on the phone. Other international rates are posted on the company's home page.
Delta Three also has notable online billing features for both of its services. Open a prepaid account online for $25 and then choose how you would like your bill organized -- by time and date of call, call destination, the number calls were dialed from or call duration.
If you don't want to worry about replenishing your account balance, you can opt for "automatic recharge" and your credit card will be billed for another $25 to $150 when your balance dips below $5. If you don't opt for autopilot mode, you'll get a warning when your balance falls below $5.
The company has good online support for the most frequently asked questions. Emails to their support center will be answered within 24 hours. It took us about five hours to get a response.
Right now Delta Three lets you send a free electronic greeting card over the Internet through its Friendship Rings program. Each card comes with a "call me" button that downloads the PC-to-phone dialer software when it's clicked, and gives you 15 minutes of free call time.
Access Power
Services Available: PC-to-Phone
If you don't like billing surprises, you may want to check out the Access Power Net.Caller program. For just $10 a month, you get unlimited calls to anywhere in the U.S. from any PC location. You can download the software for free off the Web site.
As for call quality, PC-to-phone calls were a little scratchy and there were slight, three-second delays in the sound. That doesn't make it ideal for heart-to-hearts or important business talks. But at $10 a month, it's a great way to save on most domestic calls. If you want to call overseas, you'll have to wait until the summer, when Access Power adds international calling originating in the U.S.
Aplio
Services Available: Phone-to-Phone
Aplio says it can cut your long distance phone bill by 100% by directing calls onto the Internet. You do so with the Aplio/Phone 2.0, a small box that attaches to your telephone and, at the push of a button, routes your calls over the Internet via your ISP. Each Aplio box costs $199 and both caller and recipient need a box to make a call.
For an online listing of ISPs that support the system, see the company's Web site.
1st Family/MediaRing
Services Available: PC-to-PC
1st Family, a California-based Internet service provider, has teamed up with ITSP MediaRing to offer free PC-to-PC Internet phone service. The dialer software is free from the MediaRing or 1st Family Web sites or by dialing 831-423-8580.
Of course, you can only talk to another person who has the same dialer software on the computer. But you don't have to schedule calls. Instead, leave a text email message for someone on their computer saying you tried to call. It's also possible to use the PC-to-PC service with "text talk" if you don't have a microphone, as if you were having a private, online chat. Text talk can be saved.
You'll need an Internet service provider to make the calls. Obviously, 1st Family is hoping consumers will sign up for its $14.95-a-month service, though it's not necessary.
VocalTec Communications
Services Available: PC-to-PC
VocalTec actually owns and operates gateways that make Internet calls possible. But the company was also the first to offer PC-to-PC possible back in 1995 and it's still offering the service, called Internet Phone Release 5.
Any PC-to-PC call is free, no matter where or when you dial. But VocalTec's software is pricey -- $49.95. One thing you're paying for is the company's "community browser," similar to a White Pages listing of the 5,000 other VocalTec customers you can call. (Remember, you can't make PC-to-PC calls to anyone who doesn't have Phone Release 5. )
The directory sorts people by country, language and interests, so if you feel like tracking down a Swedish-speaking lute player, it may be possible. You can try the service and directory for free for two weeks. VocalTec also gives you a duplicate of Phone Release 5 for a friend.
The service has a video monitor that shows about five to 10 frames a second, but the viewing program isn't available for Macintosh computers. If you use a Mac, you also must schedule calls.
In this section:
Long Distance Service | Long Distance Calling Card | Cellular Provider | Internet Phone | Internet Service Provider
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