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What is VoIP
What is VoIP & how does VoIP technology benefit consumers and small businesses?
April 10, 2006
By: Alice Osborn
What is VoIP? What is the intrinsic value of this
technology? VoIP (voice over Internet protocol) describes
the technology that enables consumers to make phone calls
over the Internet instead of through a traditional landline
or cell phone telecommunications network. Some of the
benefits of VoIP technology include saving money on long
distance phone calls, voice mail that can be received as
e-mail messages, and the option of adding a toll-free number
that will reach the user's main number.
VoIP technology has grown in recent years because small
business customers and consumers are clamoring for this
technology because of its easy-to-use and sophisticated
features that surpass those of traditional phones, its
software upgrade potential, and its bandwidth efficiency.
Examples of some cost-efficient residential VoIP services
include
Vonage,
Packet8
and Skype,
while small business customers have favored
Skyy Consulting and
GalaxyVoice. Additionally, several large cable companies
and telcos, such as Time Warner and AT&T, are offering VoIP
services, but they are calling them digital phone services.
According to a new study by Info-Tech Research analyst
George Goodall, the rapid adoption of VoIP is siphoning off
traditional telephony, with 50 percent of small-to mid-sized
enterprises (SMEs) expecting to rely on VoIP by 2008. He
expects the majority of these SMEs to have converted at
least part of their telephony networks to VoIP within the
next five years.
How VoIP works -- circuit versus packet switching
Calls over a traditional phone network are actually made
via fiber optic networks by digitizing your analog voice
communications for sending across thousands of miles, but
once it gets to the final destination (a home office phone,
for instance), the signal is once again converted to analog.
During these calls, several interconnected switches along
the connected line remain open even while there is dead air
and no conversation is taking place. The circuit is even
open in both directions even when only one party is talking
and the other is listening. This transmission method, called
circuit switching, is very inefficient because it does not
fully utilize the data transmission capacity of the
dedicated line.
On the other hand, VoIP technology used over IP data
networks works differently. Rather than circuit switching,
data packet switching sends and receives small chucks of
voice data, called a packet, only when you need it --
instead of in a constant stream. It also sends the data
packets along whatever open Internet circuits that are
available, which is much more efficient than using a
dedicated line.
The VoIP circuit is used to capacity since VoIP packet
switching shares network space with other Internet data,
allowing the network to send and receive more calls than
over a traditional telephony network. VoIP's packet-switched
networks fit well into the data network infrastructure that
is already in place because of the Internet.
Specifics of VoIP technology
With VoIP technology, communication can take place
computer-to-computer using "soft phones" or VoIP software, a
VoIP service provider, and a broadband connection. When
communicating via PC, users should invest in a quality
soundcard and a headset for the best sound quality. VoIP can
also work via landline phones using Analog Telephone
Adapters (ATAs) connected directly to an Internet
connection, which is the most popular option. Lastly, IP
phones, or hard phones, have an Ethernet port that directly
communicates with a VoIP server, a VoIP gateway or another
VoIP phone. They can be used independently, without a PC.
Advantages of VoIP
VoIP saves money spent on long distance phone calls while
promoting bandwidth data capacity and telephony efficiency.
Since SMEs and consumers are always looking at where they
can cut costs and improve quality, VoIP becomes a likely
candidate for voice services. Here are some other features
that are offered by VoIP providers:
- Enhanced 911 services. This year, the FCC imposed E911
requirements for VoIP service providers, making the
providers automatically deliver a location and callback
number to local 911 emergency services personnel. Before
this feature was enforced, some 911 callers using VoIP
phones were not connected to emergency services.
- By
using a phone adaptor (ATA), the VoIP technology can
travel anywhere where the user can connect to a broadband
connection.
- By adding a virtual phone number, users can
have out of area customers or friends call them on their
virtual phone number that rings on their main number for
only an additional $5 a month.
Disadvantages of VoIP
- There are problems with latency, or delays, when the
VoIP data packets are jumping and become scattered between
transmissions. A possible solution is to increase the
bandwidth capacity to greater than 256 kbits of bandwidth.
- In case the power goes out, users need a back-up power
source (UPS or generator) to protect the VoIP connection.
- Some of the VoIP providers still do not have adequate E911
systems and may mistakenly send help to a traveler's home if
they fail to provide their new contact information to the
VoIP provider before they made a 911 call on the road.
Looking ahead
This year been a healthy for VoIP technology, but in
2006, the VoIP market will expand even further. With
escalating gas prices, along with heating costs, customers
and small businesses will be looking at ways to cut costs,
while maintaining the voice quality they are used to with
their traditional telephone services.
About the Author
Alice Osborn is a successful freelance writer and
contributor to Audio-Conferencing-Guide.com. Your definitive guide to everything you need to know about
audio driven communications, including audio conferencing,
conference calling services, and VoIP telephony for business
and personal use.
Also See: [
Audio and web
conferencing using VoIP conference software ]
[ Affordable
conference calls & compare conference call providers ]
[ A flat rate
conference call plan can save a small business money each
month ]
Home Page:
[ Audio-Conferencing-Guide.com ]
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