| g systems used by internet telephone providers | | | | time from most providers is in the range of $15 |
| fall into two main categories. | | | | per month. Plans with unlimited calling fall in the |
| The first category is very similar to that of | | | | range of $20 to $25 per month. |
| wireless phone providers, with a monthly fee | | | | VOIP providers, like traditional carriers, make a |
| based on the amount of usage. The second | | | | distinction between personal and business |
| category is similar to prepaid wireless providers, | | | | accounts. Business accounts are charged a higher |
| with credits or minutes of calling time purchased in | | | | rate based on the assumption that business usage |
| advanced. | | | | will be higher than personal usage. |
| This article will briefly discuss how these billing | | | | The rich feature set of internet telephones allows |
| systems work, and also discuss how billing is | | | | providers to offer many advanced, optional |
| handled for optional features such as videophone | | | | services at a much lower rate than the traditional |
| capability and fax lines. For the purposes of this | | | | carriers. Most of the major providers furnish their |
| article, we will refer to the two categories as | | | | customers a free PC softphone as part of their |
| monthly and prepaid. | | | | basic package. A second line with choice of area |
| One important aspect of VOIP billing is the calling | | | | code (virtual phone number) is available from |
| area covered by the plan or prepaid minutes | | | | most providers for approximately $5 per month. |
| purchased. All of the major providers have plans | | | | Dedicated fax lines can be added for $5-$10 per |
| that allow calling to anywhere in the US or | | | | month, usually with a limited number of minutes |
| Canada. Most of the providers now offer the | | | | per month. A 1-800 number with 100 inbound |
| ability to choose an area code in another country, | | | | minutes is available from most providers for |
| with that country then becoming the basic calling | | | | approximately $5 per month. |
| area. | | | | Most VOIP providers do not require a contract, |
| Calls outside the plan calling area will be billed at | | | | but may offer a low-rate for a period of 1 or 2 |
| set rates for different countries. All of the | | | | years with a relatively low ($20-$30) early |
| providers post lists of available countries on their | | | | cancellation fee. Most VOIP billing plans are also |
| websites with the per-minute cost listed for each | | | | offered on a 30-day free trial with no penalty for |
| country. | | | | cancellation within the 30-day period. Also, most |
| Most of the major providers that offer a | | | | providers charge a setup fee, ranging from |
| complete VOIP solution conduct their billing using | | | | $20-$40. |
| the monthly method. Vonage and Sun Rocket are | | | | The second category of providers, those that |
| examples of providers that use this type of billing. | | | | offer prepaid calling time, fall in the general range |
| These providers offer a range of monthly plans. | | | | of .03 to .05 per minute for calls made to |
| Usually the lower cost plans have a limited number | | | | locations inside the plan calling area. These minutes |
| of calling minutes per month, while the costlier | | | | can be purchased in quantity on a prepaid basis, |
| plans will include unlimited calling. Most providers | | | | with the per minute rate decreasing as the |
| offer features such as call ID capability, voice mail, | | | | number of minutes purchased increases. |
| call waiting and call forwarding even in their most | | | | This type of provider will usually offer a free PC |
| basic plans. | | | | softphone as a lead-in to paid services. Usually, |
| This is one area where internet telephones have a | | | | with this type of provider, PC to PC calling is free, |
| major cost advantage over the traditional phone | | | | with the per minute cost coming in to play for |
| carriers that charge a premium for these | | | | calls to and from landline and mobile users. Skype |
| services. | | | | and Firefly are two examples of this type of |
| Pricing for basic plans with 500 minutes of calling | | | | provider. |