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In the analog phone world, you pick up your phone, get a dial tone and call the person on the other end.   The call travels through the public switched telephone network (PSTN) and the person on the other end receives your call.   Although the PSTN is mostly computerized today, this basic flow hasn't changed much since Alexander Graham Bell made his first call over 100 years ago

In the digital world, with Broadband calling, you pick up your phone, get a dial tone and call the person on the other end who also picks up on a regular telephone.   It's the exact same way you call someone today.   The difference is that your voice is turned into a digital signal, and the call bypasses the PSTN (for the most part) by traveling over the Internet.

The adapter is what converts your analog signal into digital.   If you have digital cable TV, this is the same function performed by your set-top converter box.   The router effectively lets you utilize your Internet connection for simultaneous web browsing and calling.   Depending on the service you sign up for, the phone adapter may also function as your router.   Note that in most cases the router is optional, and only needed if you want to browse the Internet on a computer.  

<< Requirements for Internet Calling What Can I Save? >>
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Important Tax/Fee Update!
As of July, 2006, the government will no longer collect the 3% federal excise tax on telecommunications. However, at the same time, VoIP providers will now be required to contribute to the Universal Service Fund, which helps subsidize service in rural and low-income areas. The contribution rate for this fund varies by quarter and can even vary by VoIP provider (because it is based on interstate call percentages). Initially, however, it is expected to be about 6.8%, and we have updated our tax/fee calculations accordingly.
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  • The digital nature of VoIP enables a wide variety of features. At a minimum, these plans include voicemail, caller ID, call waiting, call forwarding and online account management. See the provider's site for a full list of features.

  • Important information about 911 calls: Emergency (911) calls can be made via the VoIP providers we compare on MyRatePlan. At the same time, most VoIP services are mobile, meaning you can actually take your service with you on business travel or when you go to a vacation home, for example. In those cases, the address at which you are using the VoIP service will be different than your primary home (billing) address. Therefore, it is important that you follow your provider's instructions about registering the physical location where you will utilize their service.


 

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