VoIP helps people stay out of debt
Published: July 31, 2005
OVER-THE-TOP phone bills are leaving plenty of Australians in debt, and many are turning to the Telecommunications Industry Ombudsman (TIO) for help.
In the first quarter of 2005 alone, the TIO received nearly 11,000 complaints about landlines - one-third of them relating to charges. Mobile phones generated even more complaints.
Trouble is, phones are an essential part of our lives, and the cost of staying in touch shouldn’t put you in the red.
Whether it’s a mobile or a landline, there are options available. So understanding your call patterns before signing any deals can keep the phone bills in check.
The Australian Consumers’ Association found that with mobiles, light users were better off with a pre-paid service, whereas heavy users should consider post-paid plans.
If you have broadband access and regularly make long-distance calls, it’s worth considering Internet-based telephony.
Voice over Internet protocol (VoIP) uses the Internet to make phone calls, and long-distance calls can cost a fraction of the normal rate.
A VoIP-based call to a landline phone in Britain, for instance, can cost around five cents a minute compared with 21c a minute under some conventional plans.
Moreover, when you make a call to someone using the same VoIP network - Skype, Firefly and so on - it is often free. There are limitations, however.
The quality of VoIP calls can be variable - users may encounter time lags and intermittent echo. Some VoIP plans require special handsets, others have high set-up costs, and providers may charge monthly fees.
Another snag with VoIP is that you can make calls only using a computer connected to the Net. This may not always be convenient, and during a blackout can leave you stranded.
An alternative may be a pre-paid phone card bought from a newsagent or online.
Phone cards also let you make both interstate and international calls for a fraction of the usual cost. In fact, Kenneth Ting, of Phone Card Selector, says it’s possible to trim 80 to 90 per cent off the cost of an overseas call.
These savings arise because phone-card manufacturers buy phone minutes in bulk from various carriers, and this discount is passed on to consumers. Some cards may use VoIP technology.
Phone cards cost between $5 and $50. To make a call, dial the access number written on your card, which connects you to the network applicable to your particular card.
Once connected, you enter a PIN on the phone keypad and, after a computerised recording indicates the minutes remaining on the card, you dial the phone number.
Cheap calls aren’t the only plus with phone cards. The fact they’re pre-paid means you’re not racking up a huge charge that could prove a struggle to pay.
And, unlike many landline or mobile-phone deals, there are no ongoing contracts tying you to high charges.
At the end of the day, it might not suit you, but it’s worth a look.
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