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![]() VoIP - how it works
Forget paying up to 12.5p per minute to use your BT line. You can get calls absolutely free by using the internet or for next to nothing with an override provider. The Moneymagpies have done all the research for you, so read on to lower your phone bills.
Calling using the internet - VoIP technologyVo..what? It sounds a bit fancy, but one of the cheapest ways to call for free is using Voice over Internet Protocol or VoIP. Basically this just means calling and speaking over the internet instead of phone lines. You can do it in three ways:
Are all calls free?If you speak straight from your computer to your friend’s computer - wherever they are in the world - it’s completely free (assuming you already pay a monthly rate for your broadband connection). However, if you phone their normal home telephone or mobile phone from your computer it will cost you. How much depends on where they are and whether it's a mobile or a landline. It's generally pretty cheap for international calls, but to get completely free calls, stick to speaking to your Skype contacts. The only real drawback is that it’s entirely reliant on your internet connection . If your connection is weak or unreliable your voice can sound garbled at times. But with broadband advancing at the speed of light, you shouldn't have many problems.
What service providers are there?VOIP can be much cheaper than using a traditional landline or mobile phone, especially if you are calling abroad. The confusing element (as ever) is that there are various providers to choose from and they all have different advantages and disadvantages. So, have a look at these and choose the one that suits you best.
Providers for landline callsSkype Skype is probably the most well known VoIP service. The company has recently developed several new ways of using the Skype service. You can still simply call computer to computer for free, no matter where you are in the world, and download the software you need to do this for free. If you've got a webcam you can also make free video calls. If you want to call from computer to phone, Skype has introduced new options. You can choose between:
This works just like a pay-as-you-go mobile. You put credit on your Skype account online (minimum £10) and then spend it on calls. The rates to call UK landlines are 1.4p all the time - cheaper than using BT during the day. However, it costs 16.6p a minute to UK mobiles which is actually more expensive than calling from a BT landline. The best value calls are international. For example, it costs 1.4p to call a US landline or mobile.
If you want to call a lot through Skype, they've introduced packages giving you unlimited calls to whichever countries you choose. With the package you get a special Skype number. People can use this number to call you directly on your Skype interface. The first package for just UK landlines is £2.24 a month (including VAT). The most expensive is 'unlimited world', which is just £7.99 (including VAT). Quite noticeably, none of these plans include free calls to UK mobiles.
This is a mobile that lets you call your Skype contacts online or on their own Skype mobiles, completely free. You can buy Skype mobiles from 3 Mobile and as with other phones, opt for pay-as-you-go or pay monthly. The best thing about this is that you can call another Skype phone wherever in the world they are. They just have to be on the 3 Mobile's sister network in the specific country. To find out which are the sister networks, click here. All non-Skype calls are charged at a flat rate of 12p. One major downside is that all Skype pay-as-you-go outgoing calls (with a handset) are subject to a connection fee of 3.3p. The main disadvantage of Skype is that to get the best value, you have to be stuck to the computer. But the free calls service to other Skype users is great quality. If you just stick to these calls you won't have to spend a penny.
Vonage Vonage is a service that calls over the internet but functions just like a normal landline. Your computer doesn't even have to be turned on. You have to pick a plan that includes unlimited free calls to UK or worldwide landlines. For these calls you pay a monthly subscription. For making calls in the UK, Vonage is good. It offers unlimited local and national (landline) calls to anywhere in the UK and the Republic of Ireland for £5.99 a month. As the plans go up in price, more countries are included in the unlimited minutes. Vonage to Vonage calls are always free, as long as you have already signed up to a monthly payment plan. However, outside of these calls you do have to pay. UK mobiles are the most notable calls that are not included in any of the unlimited call packages. It will cost you 20p to call 3 Mobile and 12p to call the others. On the other hand, the international calls are all under 13p per minute. The cheapest are just 1p per minute. So you can still call internationally quite cheaply, even without buying an international call package.
BT Internet BT Broadband may be a good choice if you want a company you're familiar with. It will supply you with an internet phone that acts just like a normal telephone - but you can call more than 50 countries from as little as 1.25p a minute. The Unlimited Evening & Weekend Plan allows you to make calls free between 6pm and 6am (if your broadband supplier is BT) for up to an hour per call. After an hour you must hang up and redial. Customers with broadband from another provider pay £2.99 a month. The BT Anytime plan allows you to make unlimited UK calls of up to an hour per call at any time for £4.99 a month if your broadband supplier is BT. Customers with broadband from another provider pay £7.99 a month. If you already have BT Broadband you can just extend your existing package. But despite all the free calls, BT Broadband is not the cheapest for calling abroad or anywhere else really. To phone a UK mobile it is 12.5p per minute during the day and 7.5p off-peak. This is the same as charges on a normal BT line. International call charges start at 1.25p per minute, which is significantly cheaper than the standard BT line rates. However, it is not cheaper than any other providers mentioned in this article. A standard call set-up fee of 3p (inc VAT) applies to each chargeable call, although not to Evening and Weekend or Anytime (Local and National) calls under one hour. Set up costs are significant and the higher packages often mean you have to sign up for 18 months. This is the cheapest service BT offers, but if you shop around you can get a better deal.
VoIP Cheap VoIP Cheap and VoIP Stunt are sister companies. VoIP Cheap works in exactly the same way as Skype. However, instead of having a lower rate per minute or buying a bundle package, VoIP Cheap gives you free calls to landlines in selected countries just for signing up. You can also phone other VoIP Cheap users for free. They also offer free text messaging. VoIP Stunt is more like BT Broadband where you phone through the internet but on a normal phone. However, it's better than BT as you get completely free calls. If you sign up for a trial you get 60 minutes of free calls for free. After these 60 minutes, you have to buy £10 credit to get on the freedays plan. This then gives you 300 minutes to free calling destinations per week. You stay on the freedays plan for 60 days and then you have to buy more credit to continue calling for free. These are both good services, but the credit top-ups may be left unused if you are only calling free destinations. After you have used up your 300 minutes per week, normal VoIP Cheap/ Stunt rates apply. Certain countries are free to call, although not a huge selection. See the whole list here.
Cheapest handsets for your home
Providers for mobilesRebTel RebTel is a service that lets you make cheap international calls from your mobile. No need for a computer. It works in two ways: Direct call - To call someone directly, first you send their number to RebTel. They will then generate a local RebTel number which you can dial from your phone and pay a cheaper rate for calling internationally. Smart call - To set up a smart call, you dial someone on their RebTel number. You then ask them to phone you back on the number that has appeared on their phone. They hang up to phone you back, but you stay on the line. In a few seconds they will click back onto the line and your call will be free. You can only smart call between certain countries - see which ones here (they are highlighted in blue on the list). The rates start from less than a penny - see them all here. When calling with RebTel you do still have to pay your main provider (o2, Orange etc) for the minutes you use. However they will only be charged at local rate. RebTel really is good if you have a big free minutes bundle from your mobile provider and you have lots of friends abroad. It is a bit fiddly, but if you can be bothered to do it you can save as much as £1.482 per minute compared to your home provider.
Connect Me Anywhere Connect Me Anywhere is similar to RebTel. You register online with them for free and then upload your friends' numbers into your database. Then to call them, you phone a local number that connects you to Connect Me Anywhere. You then type in the name of the person you want to call using the keyboard, or use the voice activation service. Connect me Anywhere will then connect you and you can chat away. What you have to pay is:
The rates on Connect Me Anywhere are relatively low, but not that competitive with the landline VoIP services. However, it is an option for using on your mobile. You can use it wherever you are and it is significantly cheaper than your mobile providers rates will be. However, do watch out as the rates are extremely fiddly. There are different charges for different mobile providers in different countries and even different areas in different countries. The rates can change all the time, so make sure you look up carefully where you are intending to call before you make the call.
Truphone Truphone is essentially a bit of software you can download onto your mobile which routes calls over the internet. However, at the moment it will only be of use to you if you have an iPhone, a Blackberry or a Nokia N or E Series. The company are working on expanding the technology to other phone models, so it's one to look out for. The software works alongside your phone, a bit like having an extra pay-as-you-go contract on the side. You can just top-up your credit online, and use the Truphone service whenever you want.
Rates vary depending on where in the world you're calling from and to. For all the rates, click here. Happily though, calls between Nokia Truphone users are always free regardless of where you are in the world. Truphone also offers bundle deals for calling the USA and Canada. It'll cost you £7.49 for 1000 USA and Canada minutes, charged at less than 1p per minute. Get your hands on a bundle here.
Override providersOverride providers are specialist phone providers that you access by dialling a code before the number you are calling. When you dial the access code, the company lifts it from the BT line and runs it through their own line. The calls made with these providers are mostly charged straight to your credit or debit card. You need to go online to register with them and provide these details. To use an override provider you must already have a phone line, but they work on all normal landline providers. Calls made using an override provider almost always charge an initial connection fee. However after this the calls are generally a lot cheaper that with BT or other suppliers. The best one for UK landlines is 1899. You’ll pay a 4p connection charge and then the calls are free, for as long as you want to talk. For calling mobiles during the day the cheapest service is 18185 which is 6p/min plus a 5p connection charge (BT peak price is 12.5p/min). 18185 rates start from just 0.5p per minute to a US mobile with a 5p connection charge. You can sign up to all these services at the same time to get the best price for whatever call you’re making. The advantage they have over VoIP services is that you don't have to have the internet (except to sign up in the first place). You won't be stuck to a computer to make the calls and calling is so much simpler. No need to send off numbers and get local ones to replace them, for instance. However, it's not portable and can only be used in your own home. The best way to use override providers is to be registered for all of them. Then you can pick and choose the best rates. When you call a mobile, use one code. When you call nationally use another. Finally, look at all of them to find the best rate for the specific country you want to ring.
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Andrew Soames and Alessia Horwich
Moneymagpie News
25.11.2008

