Exactly what is VoIP?

VoipReview
August 08, 2004
VoipReview Staff Writer

Exactly what is VoIP?

You might have heard the term “VoIP” but exactly what is VoIP? First, the acronym stands for Voice over IP (Internet Protocol), meaning voice communication for business owners and individuals can now be delivered over the Internet, or IP.

In other words, VoIP technology sends voice information in digital form using special packets instead of the normal process of circuit-committed protocols that are used with the public switched telephone network, also called PSTN. Okay, so you now know what VoIP is but what does it do and how is it beneficial?

For starters, with VoIP technology, voice traffic as well as data can be sent over your IP network as well as ATM network and frame relay. Because of this, VoIP offers all types and sizes of businesses a huge advantage from what they would find with traditional phone services. Okay, in addition to knowing “what VoIP is”, what are the benefits?

To setup VoIP for your business or home, you will pay very little. The costs you do pay will be recouped in about one month. One of the most popular choices is where VoIP providers offer a buffet style solution where you pay one flat fee and then get all the enhancements you want. These plans eliminate per-minute charges with the exception of international calls, but even those are much cheaper. There are even some Voip plans that offer unlimited calling to Europe and Asia for a flate monthly fee.

You will also have more control in that you can configure your VoIP service the way you want and manage it using extranet websites. You will have the control of looking over phone logs, archiving messages in a special digital format, obtaining billing information, setting up direct accounts, and more. You also have the flexibility of moving around. For instance, if you have your business in one location but need to move, you can simply relocate the VoIP technology wherever you go and best of all, your service is never disrupted. Since it uses the internet to route the calls, you can have access from anywhere, visiting relatives, hotel stays, and so on as long as you have a high speed internet connection.

If you’re a business, VoIP technology also helps improve business and increase the bottom line. With more flexibility and access to your valuable customers, you can have calls forwarded to you on your cell phone using your main business number. If you prefer, you can request additional phone numbers for added convenience. But wait, there is more. VoIP technology also gives you the option of choosing toll-free or local numbers in any local calling area so your customers can call you back at no cost using your number in their area. For example, if you are in New York but you have customers in Denver you can have a Denver number ring to you in New York.

What is VoIP technology? It is an excellent way to grow your business and save a tremendous amount of money. Are there any disadvantages to VoIP? There are a few although they still do not override the benefits. One disadvantage is that the quality of the calls will vary depending on your Internet provider. Additionally, there could be times when you experience dropped calls or some line distortion usually due to problems with your Internet provider.

While there are also some regulatory issues being worked out, overall, VoIP technology is an exciting and innovative approach to staying in contact with clients and not spending a fortune. Now when someone asks you, “What is VoIP technology?” you can tell him or her it is the greatest thing to happen to business owners and consumers in a long time.

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