Like your neighbor, many VoIP users save money. VoIP services often include unlimited local and long distance calling plans (at least within the US and Canada) for a fixed price. They also can have a range of interesting features, such as the ability to have multiple phone numbers, integrated voicemail and email message systems, and the ability to take your VoIP system with you if you travel with your computer.

VoIP may be for you, but your decision should be based on careful consideration of the pros and cons, as well as your comfort level with technology, advises the Federal Trade Commission, the nation’s consumer protection agency. Since calls are transmitted over the Internet, your service can be attacked by computer viruses or worms. You can be subject to SPIT (Spam over Internet Telephony), a new kind of spam, and left with mass voice mail messages in your inbox.

Find out what protections you need. Some VoIP services don’t work during power outages; others don't provide emergency 911 service. Ask the individual providers. Finally, costs, terms and conditions vary, so make sure you do your homework and know what you’re really getting.