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I dumped my local phone provider a few months ago and have never looked back. I use Vonage now and couldn't be happier. It's cheaper then the phone company and you get tons more features.
I don't know how your alarm system works, but if you setup VOIP correctly then it shouldn't make a difference because it acts exactly like a regular phone line coming into your house. If the alarm company relies on your phone number to tell who you are, then it could cuase problems.
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