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Voice over Internet Protocol (VoIP) Services: FAQs

What are VoIP services?

Services using the Voice over Internet Protocol (i.e. VoIP services) provide voice calls and messaging services over a broadband connection rather than over traditional telephone networks (such as over the Public Switched Telephone Network, known simply as the PSTN).

To use a VoIP service, you would typically use a broadband connection together with some special equipment. This equipment could be either a personal computer installed with relevant software, or a traditional telephone handset with an adaptor that plugs into the broadband connection, or a wireless device with suitable software installed on it.

Are VoIP calls cheaper than calls on traditional telephone networks?

VoIP calls do offer consumers the prospect of benefits, including lower calls prices (especially for calls from one VoIP service to another). One reason for this is that the cost of providing the systems and network for VoIP calls could be less than for voice calls over traditional telephone networks. However, VoIP calls are not always cheaper than calls over traditional telephone networks. Consumers should check the prices of different services carefully.

What are the other advantages of using VoIP?

VoIP services offer other sophisticated services, such as call handling and unified messaging. Examples include availability information which indicates whether a called party is available to take your call.

VoIP services use the broadband connection and, as such, allow the provision of additional line(s) without an additional PSTN line and rental.

A VoIP service allows for both inbound and outbound calling and can be provided with an inbound number which can be from any country or area code (subject to provider availability).

How many people in the UK already use VoIP and how quickly is take-up growing?

Awareness of these new services continues to increase, particularly among broadband customers, and industry estimates suggest that there are now more than 500,000 active VoIP users in the UK.

Take-up growth is forecast to continue over the next few years. By the end of 2007, some analysts forecast that there will be about three million PC-to-PC VoIP users and about one million who use VoIP services to call to and from traditional telephone connections in the UK.

What should consumers ask about before signing up for a VoIP service?

Consumers should check the prices of different services carefully. In addition, some VoIP services might ‘look and feel’ like traditional telephone services but may not offer (in the same way or to the same standard) all the features consumers have come to expect from their traditional telephone service.

If you are considering VoIP, ask the provider to explain what their service can and cannot do, before you subscribe. Some relevant questions you may want to ask the VoIP provider might include:

does the VoIP provider offers access to the emergency services, i.e. 999/112 calls?
does the VoIP service depend on your power supply? In particular, does the provider offer back-up power in case of power cuts?
if there is a problem with your broadband connection, will the VoIP provider offer a back up to make calls via a traditional (PSTN) telephone connection?
if you call the emergency services, will they automatically know where you are calling from?
what other features such as directory assistance, directory listings and access to the operator, do the VoIP provider offer?
will you be able to keep your telephone number if you later decide to transfer your services to another provider in the future?

What is Ofcom doing to ensure consumers get the information they need?

Ofcom is proposing to introduce a mandatory code which requires VoIP service providers to give consumers important information about elements of the service that are different to traditional telephone services. The particular areas include:

overall service reliability;
whether access to emergency calls is offered;
reliability of access to emergency calls;
whether location information is provided to the emergency services;
ability to keep your telephone number;
other information such as directory assistance, directory listing and access to the operator.

How will Ofcom enforce a requirement for VoIP providers to comply with a consumer information code?

Ofcom is very keen to achieve a high level of compliance with the proposed consumer information code. Ofcom is plans take an active approach to increase understanding of the obligations, promote and monitor compliance and, if necessary, take enforcement action.

Ofcom is writing to industry to inform providers of the proposed regulation particularly concerning the consumer information code. Also, over the coming months, Ofcom will meet with providers to discuss how they intend to comply with the code.

Subject to responses to the consultation on Ofcom’s proposals, Ofcom would expect the code will come into force in the summer of 2006. Ofcom would then start a ‘mystery shopping’ exercise by purchasing certain VoIP services from various providers to ascertain whether they comply with the code. If they are not complying with the code, Ofcom may instigate enforcement proceedings under the Communications Act 2003.

What are the rules on offering access to emergency services?

If VoIP service providers offer access to emergency services, then they are required to meet certain requirements about this service. In particular, they have to (depending on the characteristics of the service) take certain steps to ensure that their services are reliable and provide location information to the emergency services.

What are PATS regulations and how do they impact VoIP providers?

As part of the consultation published on 22 February 2006, Ofcom is updating its guidance to encourage VoIP providers to offer access to 999 emergency services and to help them comply with existing regulation of voice services, including requirements for Publicly Available Telephone Services (known simply as PATS).

Typically, if a VoIP service offers 999 access, it is likely that it will be defined as a PATS service. If so, a provider of such a service will have to meet certain additional existing regulatory requirements. These include: reliability of access to emergency services, access to 999 at no charge, support for relevant authorities in the event of a disaster, provision of operator assistance and implementation of special measures for end-users with disabilities such as a text relay service for the hard of hearing.

A VoIP services provider, whose service is defined as PATS, has right (on its subscriber’s behalf) to request portability from another PATS provider for all types of telephone numbers.

Are any VoIP services using the 056 number range?

There are some VoIP services that use the 056 number range, although many providers offer traditional geographic numbers such as 0141 and 01252.

What about number portability?

Customers’ rights to number portability depend on whether their provider is PATS or not. Typically, customers using a PATS provider will be able to transfer their number to another PATS provider. In other cases, this option may not be available.

What is naked DSL and what is Ofcom’s approach?

At the moment, if you take up a Digital Subscriber Line (i.e. DSL) broadband service, you will also need to have standard line rental (which includes a PSTN service) even if you do not use the PSTN service. A naked DSL product allows you to rent the line without the PSTN service and is likely to be cheaper than the standard line rental.

Ofcom believes, at present, that it is a matter for operators and service providers in the market to assess the need from consumers for new products, such as naked DSL.