You may have heard of ‘Voice over IP’ (VoIP) or ‘Internet Phones’. Whether you use these at home or in business, there are some advantages and some pitfalls. For example, you can set up a 20-person call centre in a couple of days, with half the staff actually working from home. But what’s free, and what do you need to pay for ? Our article explains the basics in plain English, with the costs.

What’s this “Voice over I P” thing ?

VoIP is the technology used for ‘Internet Telephony’ – that’s when you send telephone calls over the Internet, instead of using a BT phone line to call through a BT telephone exchange.

Don’t I need a BT phone line any more ?

You do need a broadband connection to the Internet, which 99% of the time means a BT phone line. Therefore you’ll still have to pay BT for line rental. But you don’t pay BT for calls if you use VoIP.

Who can I call ? How much does it cost ?

You can call anyone who has a compatible VoIP phone and a broadband connection absolutely free. You can talk forever and it will cost you nothing.

For example, if you have one office in Tynemouth and another in Tokyo, you can save all the international calls costs.

You can also call anyone with a ‘normal’ telephone – but you will have to pay for this. However the rates are usually better than BT’s charges, and there are plenty of providers of this service, all competing with each other.

Who can call me ?

Anyone with a compatible VoIP phone can call you for free.

You can also have an 05xxxx number, and people can call that number to ring your VoIP phone. They will pay their standard rates for calling an 05… number, you’ll pay nothing.

What’s Skype – is it the same thing ?

Skype is a ‘closed’ VoIP system which allows only Skype members to call other Skype members for free. There’s no charge to join, so if you and your contacts all use it, that’s fine.

You can also pay Skype to make calls to ‘normal’ phones.

However the charges for this are up to Skype – they clearly have a monopoly on their own, closed system.

Doesn’t Skype need a computer to work ?

It used to, but not any more.

In fact, it’s much better if you don’t use a computer. That’s because the Skype software works in the background even when you’re not talking to anyone on Skype, and can slow down your PC. In some cases, Skype actually uses your computer and your Internet connection as a way to route calls between other people who have nothing to do with you.

You can now get stand-alone VoIP phones which are Skype-compatible.

Does being Skype-compatible mean I can only use Skype for calls ?

Not any more. We have researched the best ways of keeping your options open.

We now have a dual-compatible phone which will both talk to Skype and connect to any other VoIP phone or service.

So how much money can I really save?

Line Rentals

One BT line can handle one normal phone call.

But one broadband connection can handle at least 4 VoIP phone calls.

Say you have 4 BT phone lines, and one of them now carries your broadband connection as well as voice calls. You don’t expect to receive more than 2 incoming calls at the same time – the other 2 lines are mainly for outgoing calls.

So – you can cease 2 of the BT lines, and simply use VoIP for all your outgoing calls.

Saving: at BT standard rates, 2 line rentals = about £ 250 per year.

Call Charges

Calls to Skype or other VoIP users are free - 100% saving.

Calls to normal phones – here is a comparison in pence per minute:

BT typical rates Nectar VoIP rates

UK Local calls 2.5 1.5

UK National calls 3.1 1.5

UK Mobile calls 12.5 12

And how much does the equipment cost ?

VoIP cordless phone with Skype and any other VoIP service compatibility £ 190

or

VoIP cordless phone with Skype service compatibility only £ 120

or

VoIP cordless phone without Skype compatibility £ 100

or

VoIP desktop phone without Skype compatibility £ 70

None of the above need a computer to work.

If you’re happy to have your PC switched on so that you can use the VoIP phone:

VoIP desktop phone handset for use with Skype and any other VoIP service £ 25

Optional 05xx xxx xxxx incoming number rental - £ 60 per year

How do I set it up ?

You don’t – we do. We provide the phones pre-configured the way you want them and simple instructions telling you how to start making free, or cheap, calls.

How clear is the speech ? Will I sound like a Dalek ?

Given good equipment and professional installation, it’s as good as the phones you’re used to. In fact you have probably already talked to people on VoIP phones.

Can I use this for the whole phone system in my office ?

Yes, we can link your internal phone system to VoIP services: the costs and benefits depend on what you have already. Please contact Nectar to discuss the options.

I haven’t got a phone system in my office, but I might want one…

Nectar have supplied, installed and supported complete traditional phone systems for the past 10 years.

We can now also offer ‘Virtual’ phone systems based on VoIP. Using these, you don’t need to pay for a shiny box on the wall to act as your phone system. All the call routing is done by machinery on the Internet.

This is a marvellous way to get a low-cost and flexible system, and it can be tailored exactly to your needs.

I’m happy with what I’ve got, can I just save some money on my BT call charges ?

Yes. Nectar work with Nine Telecom, a large phone company, to do this. The landline rates in pence per minute are:

BT typical rates Nectar rates

UK Local calls 2.5 1.5

UK National calls 3.1 1.5

UK Mobile calls 12.5 12

As part of the service, there’s a handy website you can use to analyse your call costs, by number dialled, length of call, day of the month, etc. It can even send you email alerts. For example –

Calls to any specified numbers

Calls costing more than £ 2

Calls lasting more than 25 minutes

Calls made outside office hours

For more information call Nectar on 0191 378 1946 or email ray@nectar.uk.com