Internet Phones: What They Are and What They Look Like
What is an internet phone?
An internet phone is any phone or phone system that uses the internet rather than the plain old telephone system (POTS) to carry voice (or sound).
Different Internet Phones
There are different types of internet phones. All internet phone set-ups require an internet connection to work, but unlike what many people think you do not have to have your computer running to operate every kind of internet phone. In fact, some phones and devices can connect to the internet without the use of a computer. For all internet phones you need to buy service from an internet phone provider.
All internet phones fall into one of two categories – either hardware or software – sometimes called a softphone.
In the hardware category there are two basic types of internet phones:
· Dedicated Internet Phone
· Analog Terminal Adaptor (ATA)
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In the software category there are two basic types of internet phone:
· Soft Phone on a computer
· Soft Phone on a smartphone
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Lastly, some internet phones crossover between the hardware and software categories. These phones usually require an actual phone to use but you can also plug them into your computer. The most commonly known ones are MagicJack and Nettalk Duo. These phones usually require a specialized device made specially by the provider. They have the least flexibility when it comes to do-it-yourself stuff and you cannot use them with any other providers.
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The dedicated internet phone is generally aimed at the corporate market and is cumbersome to use. This internet phone looks like a regular phone but it does not act like a regular phone. It actually has a mini-computer built in, and so it cannot be plugged into a land line– it can only be plugged directly into an Ethernet cable port. The built in mini-computer not only makes it expensive, but also means it is trickier to configure and thus is best suited for offices where regular IT support is on hand.
This type of internet phone has many business features, and usually can accommodate two lines. However, it is generally not available in a wireless handset model and so this means you’re likely going to be confined to your desk. The other big disadvantage to this type of internet phone is that you can’t have multiple phones connected to one line. For example, if you want to have multiple phones around your home (under one number) you won’t be able to with this type of set-up.
This type of phone can be bought from specialty IT stores or E-bay. The actual phone ranges from $70 (basic model) up to $300 or more (high-end model). In addition you will also need to sign up with an internet phone provider.
The only dedicated internet phone that I would recommend for the average user is the Belkin Desktop Phone for Skype. This phone is straightforward to use – other dedicated phones are more difficult to set up. The Belkin phone just needs your skype info and it can join wireless networks – something other hard phones can’t do.
My advice: Generally not recommended for the average user, best suited for business offices with multiple phone numbers and/or lines coming in. If you’re keen on getting a dedicated phone for a home office I would go with the Belkin Desktop Phone for Skype.
2) Analog Terminal Adaptor (ATA)
This type of internet phone requires a regular telephone and a special adapter. In the tech world this special adapter is called an “analog terminal adapter” or a “VOIP phone adapter”. Like many tech terms this term is more complicated than it has to be. It could have been easily called internet phone adapter.
This set-up is super easy to do – you plug the adapter into the internet, and then the telephone into the adapter. This is the most permanent set-up for an internet phone because you do not need to have your computer running and so it will work 24/7. You can also use your existing phone wiring in your house with this device so that you can have phones in various locations if you wish.
Because you do not need to have your computer running, this set-up also means you will save money on electricity – running your laptop 24 hours a day can set you back around $15 a month in electricity( more for a desktop computer), while adapters use only about $3 a month maximum. You will also avoid damaging your computer, especially your laptop by not burning out your fan or power supply. And of course the other advantage of not needing to run your computer all the time is that if your computer crashes you will not lose your phone connection.
You can either lease the adapter from your internet phone provider or you can buy it yourself. If you’re the do-it-yourself kind of person I highly recommend you buy and set up your own adapter. This way you’ll save money and you’ll have more control over your phone. You can also use it again if you change providers.
These internet phone adapters run from $50-$100 brand new, and $30-$60 used. I highly recommend the Linksys models – they are the most flexible and popular. You can check out the specific ones I recommend on the Gear page. This is the only equipment you’ll need for this type of set-up (other than a regular phone), and so the cost of the adapter is a tiny fraction of the money you’ll save in the long run.
My advice: Best suited for the average user who is looking for a stable set-up. Great for families that need a family phone. It is great both as a home phone replacement or to augment your existing phone.
This set-up requires software that runs on your computer. It does not use a physical phone. You buy a phone number from an internet phone service provider and then you buy or get for free a soft phone, which you download. This software is usually offered by your provider, although sometimes you have to get it elsewhere. The softphone allows you to make calls to landlines and cell phones through your computer. You can talk through the speaker and microphone built in or attached to your computer, and you dial by clicking on the numbers on the screen. Usually you can download the software (soft phone) quite easily, and the limited feature versions are often free. If you choose you can buy a full featured soft phone for about $30-$40. A major advantage of buying a full featured soft phone is that it gives you a lot more control over your phone.
The soft phone set-up is best for temporary usage. This is not an ideal permanent home or office set-up. You have to turn your computer on to operate the phone, which means you could miss important incoming phone calls. Running your computer for long periods of time also means higher electricity costs, and increased likelihood of wear and tear on your computer.
Two of the major soft phone players are Counter Path and 3CX. Some companies like Skype will provide you with a phone number and a soft phone, which you can dial out and receive calls on, but you can only use it with their software.
My advice: Best suited for temporary usage. Not ideal for a permanent internet phone set-up. Ideal if you have your computer with you often, and for quick calls on the go. Also ideal to make calls at your convenience.
There are a lot of advantages to using a software based internet phone on a smart phone. For one thing, you don’t have to lug out a computer or a netbook at a coffee shop if you need to use your internet phone. Smartphones can go a long time on a charge and it also ooks like you are using a regular phone when in fact you’re using an internet phone.
Another advantage is that you can usually use the cellular 3G network to carry your internet calls (depending on the country and company of course). This way you can overcome your minute or long distance limitations of your cell plan. Recently, the quality of software available for smartphones has skyrocketed and you can get business quality software phones for under $20.00, which until recently only multiple hundred dollar business phones could do.Things like easily handle multiple lines and extensions – being able to transfer calls, record calls, pretty much the whole shebang And in addition to smartphones, iPod (4G Touch) and iPads can also handle the software.
My Advice: If you don’t need a family based (or shared accommodation) phone, you may just get by nicely with an internet phone on a smartphone. And even if you have a home internet phone – you could use the same virtual phone line on your smart phone. So it is a great additional phone.



