Method 1: Switched Termination Services
Switched long distance (LD) service supports long distance calling over an existing local voice access, such as business lines or digital trunks. Switched LD service can be configured to support outbound long distance, inbound toll-free calling or both. This method often requires you to dial an access code such as the all to familiar 1010-220, or an 800 / 877 access number. Switched services have a higher rate due to the use of the local LEC for call origination.

Method 2: Dedicated Termination Services
Dedicated long distance call termination has a lower cost per minute due to the requirement of a dedicated DS1 – DS3 line to be installed although there is still a fixed loop cost for the line depending upon the size.

Traditional long distance voice call termination was typically provided via a large telecom carrier, such as Sprint, AT&T or MCI. When you had a business that did x minutes in LD, it was typically time to get a dedicated ds1/t1 or PRI from a LD carrier for the sole purpose of long distance. Some companies actually used multiple vendors. Businesses would configure their PBX’s with pricing tables. This would enable the phone system to do CCR (Custom Call Routing) throughout the day for the best rate to each dialed number.

What Are the Advantages of Call Termination?
The biggest incentive for choosing to terminate long distance calls through call termination services is cost savings. Currently, using traditional PBX systems, by default your long distance rates are locked in by your CLEC provider. These telecommunication companies essentially have a monopoly since they only have to compete against themselves. The reason why these larger companies do not go into this market YET is because they are enjoying this prosperity. VoIP cuts into their own revenue!

The biggest reason why companies do not use these types of services is because of lack of knowledge and certainty surrounding the technology. Although among carrier sized companies, many companies today do utilize these wholesale long distance prices. However, industry is moving in such a way that soon small to medium sized business will also be able to take advantage of these lower cost savings.

Long Distance Savings
Most VoIP providers offer packages from 200 to unlimited minutes per month. These calls do not differentiate between interstate, intrastate, or local calls within North America. In fact, the minutes apply to both local and long distance calls within North America.

Many Choices of Area Codes
VoIP customers may choose their phone number from many area codes (even in US/Canada), regardless of where they live or where the ATA (analog telephone adapter) is used. For example, you may choose a telephone number with the area code 212 for New York, but use the phone in Seattle. Your friends living in New York will be able to call you, without incurring long distance charges.

Free Functions and Features
Many VoIP providers offer free features such as caller ID or call forwarding for free, as value-added features. The exception is AT&T, which seems to nickle and dime consumers each month for these services, just as traditional non-VoIP telecom providers do.

Cheap Secondary Line
In order to ‘try out’ VoIP, consumers may subscribe to VoIP as a secondary phone line for their teenagers or home-based business. In fact, once they have tested VoIP’s reliability, they may consider porting their primary line to VoIP as well.

• Limited Minutes: Consumers have a limited number of minutes (for example, 300 minutes they may use per month). Once they are over this limit, they may be charged overages, but these rates should be lower than regular long distance rates.

• International Calling Bundles: Certain providers have begun bundling minutes for calling international countries. These countries are usually geographically close to each other, and are developed countries. Examples include Western Europe package, where one may call countries such as Belgium, France, UK landlines all for free. Please note that calling mobile numbers are often not part of the included minutes, while landline numbers are.

Phone-to-Phone Calling
In VoIP phone-to-phone service, the home user uses their regular home phones no different than they currently do. (Just be sure that the 911 service is set-up correctly when a phone is ordered.). All that is required is for the user to install an ATA (analog phone adapters) that connects existing (analog) telephones to the modem.

These phones are the closest to land line telephone service, as it comes with a ten digit telephone number much like an existing telephone number, and users may use their current telephones.

Vonage is one of the VoIP service providers that offer phone-to-phone calling.

PC-to-Phone Calling
PC-to-Phone Calling is when a computer is used to call other telephone numbers. A software application, also referred to as soft phones, needs to be installed and configured with the computer’s sound card and microphone in order to begin usage. The interface on the computer resembles that of a regular telephone.

Most vendors charge a low monthly rates for the long distance service. Users of this service do not use this phone as their land line replacement, but as a means to save on long distance charges.

Skype is one of the providers that offer PC-to-phone calling.

PC-to-PC Calling
PC to PC Calling is the lowest costing means of IP Telephony, and most vendors are able to offer this service for free. This is because PC-to-PC calls never touch regular telephone networks, and purely travels through the Internet, much like the way Web pages are accessed freely. PC-to-PC calling interfaces are popular as part of Instant Messaging clients because both users are already online.

Live Messenger (formerly MSN Messenger) is an example of a PC-to-PC calling service.

Phone-to-PC Calling
Though technically feasible, phone to PC calling is unpopular as few users use their PCs as telephones and as a means of accepting incoming calls.

Consumer Market
The consumer market targets residential households. The use of VoIP not only acts as a home’s land line replacement, but it is also popular as a second phone line for teens, home business, or as a fax line. Almost all features supported by residential providers are similar – what differs is in the prices charged and the packages/promotions available. Also, support and customer service are differentiating factors.

• Vonage
• Verizon VoiceWing
• AT&T CallVantage

Small to Medium Business Market
VoIP providers revolutionizes small business phone needs by offering these small businesses PBX-like features and phone systems at lower monthly fees than traditional bellcos. For example, small businesses can enjoy three or four digit call extensions, music on-hold, automated call receptionist, and voice mail options for low monthly fees.

Providers offering services to small businesses are dominated by those that those that also sell long distance services. Differentiators in this industry are again service, rather than product.

• Covad
• Virtual PBX

Enterprise Market
The enterprise market is more mature and familiar with VoIP than small business providers. Most enterprises have already invested in VoIP installations or have plans to do so within the next two years. Instead of virtual PBXs, these businesses may consider IP PBXs or IP Centrexs. IP PBXs/Centrex’s are more sophisticated at managing phone systems with many extensions (that is, over 100 extensions), and allow for more customization in services regarding power, security, and remote management. Vendors differentiate from each other not only on features, but on which other equipment they are compatible with, as well as performance.

• MCI (enterprise level service provider)
• Avaya (one of the IP PBX leader)

Here are a four things you that should consider when shopping for a VoIP service provider.

1. Consider the Service Provider Business Record and Coverage Area
To begin with, it’s important to select a VoIP company cautiously. In the United States, there are two key phone companies that provide VoIP in many locations: Vonage, Axvoice, and Comcast. Both are generally well-known and they each provides unique options and solutions.

2. Check the Internet for User Feedback on the VoIP Service Provider
When evaluating a service provider, you need to check first at the caliber of their own lines. The simplest way to check whether the company you’re considering provides a great record in the area is to get on the internet and search for problems and important web sites and blog postings. Obviously, these must be taken with a grain of salt; not everybody will be proud of every company. However , you can definitely make a good judgment as to whether a service provider offers an unreasonable lots of issues by doing a net search.

3. Check the Track Record of the VoIP Provider’s Technical Support
Help support is the second essential aspect to consider with selecting a service provider. Once again, verifying web pages for issues is a great way to determine the caliber of a provider’s help support. Other ways to evaluate client support is to send a pre-sales help request. Although some providers manage these types of assistance requests a lot better than their actual consumer requests, normally this is a great way to see how they deal with clients.

4. Compare the Features, Options, and Price with Other VoIP Providers
Last but not least, in selecting a service provider, you should pay attention to features and options. If it is essential to you to keep the current phones and possess one or more phone at your residence, ensure that the service provider you are considering enables that. If you need to check your voicemail online and get mail notification of new emails, select a service provider with that service.

The easiest way to ensure you get the features you need is to find out just what features are obtainable from every one of the providers, which might include some you have not considered, and check which are the most crucial and which you could live without.