So what do we know about VoIP as it pertains the security alarm industry?
We know that its communication is faster.  We know that its service is
cheaper and presently not subject to tariffs and taxes.  We know that it's
being marketed aggressively by the internet services.  We know that its
communication is over DSL and cable.  In most areas the VoIP providers do
not offer alarm monitoring as part of their service, though I don't think
this is the case everywhere.  Finally, we know that VoIP is most likely the
future of alarm monitoring.  So, what should you be doing about VoIP and
your alarm subscribers?     You have to deal with the VoIP issue in
principally two situations.  The first, your subscriber changes from POTS
service to VoIP.  Second, you go to sell and install a new security system
and the subscriber has only VoIP and doesn't want to get a POTS line.
    As I understand it, alarm manufacturers are making panels that are
compatible with VoIP.  Thus, you can install a security system and use VoIP
and have it monitored by a central station.  I believe the VoIP panels are
UL listed.  So why is there even an issue?
    It seems that almost without exception the VoIP providers are
disclaiming that VoIP is suitable or compatible with security systems.  The
manufacturers are also reluctant to fully endorse their equipment and are
quick to present the negatives.  The negatives include the fact that VoIP
will not work if the electric is out, unless the router is backed up by
battery, and supposedly internet is less reliable than POTS.
    Let's consider the exposure and how it might arise.  You install the
security system and hook up communication through solely the VoIP.  There
is a loss and failure of communication to the central station.  Based on
current technology, and what I have heard, it seems reasonable to me that
the plaintiff who suffered the loss is going to be able to find an "expert"
for hire who will willingly testify that it was imprudent, negligent and
perhaps grossly negligent to use solely the VoIP communication.  It is far
less likely that such a witness could make a case if POTS is used and
there was communication breakdown in the telephone company switching
stations.
    If your subscriber is going to use VoIP I think that it is prudent to
suggest back up by POTS or radio.  I haven't added this provision to my
monitoring contracts yet.  Information about VoIP and how it could
adversely affect the security system may be better addressed in a separate
letter or in a sales brochure.  Burying it in a contract may not be
sufficient.
    Anyway, that's at least part of what this VoIP issue is about.