I just finished ordering a Voice over IP phone from Packet8. They have a residential deal that provides all the custom calling features that Bellsouth charges an arm and a leg for, but with Packet8, you get everything for $20. A VoIP phone works over your DSL or cable modem connection and plugs right into your regular telephone.
Callers to your VoIP phone never know their call is going over the Internet. In fact, you can take it with you on trips. Wherever you have a broadband connection, you can receive your phone calls.
Now that I’ve ordered my phone (risk free, thankfully), I found this in the Triangle Business Journal which talks states are considering regulating VoIP companies as telephone companies. I don’t think VoIP companies should be considered telephone companies. They have not strung any cable, are not benefitting from the public right-of-way, nor are they guaranteed a profit from cushy tariffs. It’s just a ploy from the scared-shitless local phone companies to stave off their inevitable deaths.
Time Warner Cable is also planning to offer VoIP services, according to the article. Unlike other VoIP firms, TWC actually did file as a phone company. That’s probably because they DO benefit from public rights of way. Whatever you think of the cable company, having more phone competition can only be a good thing.