GuardianMoney: Q&A: free internet calls

A number of organisations have grabbed the headlines recently by offering customers the chance to make free calls over the web. Ed Ewing explains how to use these services to save money

Monday January 23, 2006

Published on Guardian Unlimited

INTERNET-BASED telephone services from companies like Google and Tesco seem to mark a huge leap towards unlimited free calls. But how do you take advantage of this new technology, and how can it save you money?

What is this all about?

Google Talk uses voice over internet protocol (VoIP) to turn your computer into a phone. Once you have downloaded and installed the free Google Talk programme you can plug in a specially adapted phone and make calls through your computer. If you call another Google Talk user the phone call is free. The Tesco service is similar and the supermarket is offering start-up packs, including a handset and £5 airtime voucher, for less than £20.

A similar service is available from a company called Skype. It launched two years ago and since then over 150 million users have downloaded the software needed to make calls via their PC or Mac. Users no longer phone their friends and relatives here or abroad, they Skype them, for free.

Surely phone calls can't be free?

Well, not entirely. Callers need to pay for a broadband internet connection. Beyond that, though, calls made to each other by users of the same network (Skype, Tesco or Google Talk) are free. Think of it like email: you can email as much as you like for nothing as long as you pay for the internet connection. VoIP is the same: you can chat as much as you like as long as you have broadband. And as with email it doesn't matter where in the world the person you are contacting is based.

So what do I need to make calls over the internet?

You need a computer, a broadband connection and, if you don't have speakers and a microphone, or want to avoid the feeling that you are talking to your computer, a specially adapted headset or telephone. This will plug in to your computer through a USB port (like your iPod does), costs between £20 and £35 and allows you to use the service as though you were using a normal phone. You then need to download a piece of software from the VoIP provider, which is usually free.

Your VoIP address book works in the same way as your email address book and it will alert you when the people listed in it are online. Companies like Skype have a global phone book of all users which lets you search for other users.

But what if the person I am calling is not on the system?

You can still call landlines or mobile phones, but you will pay for the calls as you do now. Some VoIP providers sell "packets" of time, which can still work out as a cheap way of making calls. You can also buy a cordless dualphone (about £80) which can act as an internet-phone and a normal landline.

What does BT think of this?

BT Communicator is the company's version of Skype and involves using a microphone or headset plugged into a PC. It allows you to contact anyone with Yahoo messenger for free. Other calls are charged at normal BT landline rates.

Its handset-based service is called Broadband Talk and costs from £2 a month for BT broadband customers or £2.99 for users of other ISPs. When you sign up you get a free adapter that plugs into your phone socket and lets you use your normal phone for VoIP calls. Local and national calls are then free at evenings and weekends and cost 3p a minute at other times. International calls and those to mobile phones vary in price.

What's in it for me?

VoIP is already popular among technology's "early adopters" and with five million broadband connections in the UK and the launch of the Google and Tesco services, it is on its way to becoming mainstream.

If you are already paying for broadband and often make calls to friends, family or colleagues who also have broadband connections, you should save money by signing up, particularly if your chosen service offers free calls.

Where do I find out more?

You need a Google Gmail username and password to get connected to Google Talk. Users can find out more at www.google.com/talk. Information about the Tesco service is at www.tescointernetphone.com. Skype offers full details of its service on its site: www.skype.com. BT's Broadband Voice package is outlined on www.btbroadbandvoice.com. Vonage - a leading VoIP provider in the US and now up-and-running in the UK - gives details of its service at www.vonage.co.uk.
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