VoIP means "Voice over IP " and it is quite simply a way of utilizing the Internet for telephone conversations. The primary motivations for doing so are cost and convenience as VoIP can be significantly less expensive than typical telephone long distance packages, plus one high speed Internet connection can serve for multiple phone lines.
A normal telephone service turns voices into electronic signals which are then converted into sound by your telephone. VoIP, on the other hand, treats voice like any other piece of information being sent over the Internet -- by digitizing it into packets of data.
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VoIP strengths
For most people, the biggest plus when it comes to VoIP is cost -- VoIP services can be cheaper than traditional landline phones, and in some cases are even free. Visit myvoipprovider.com and check out their VoIP Provider world Ranking based companies published call rates or search their database to find and compare international providers
The single biggest advantage of an IP PBX is for businesses with multiple locations. With VoIP, any and all offices on a LAN or WAN can get the benefits of having a common office phone system, including extension dialing, seamless call transfers, and other features. In addition to making it easier to communicate, this sharing of features can enhance collaboration as employees at different locations can truly feel like they are part of the same organization. Plus, if they are on the company network, the phone calls are free – even if your offices are located thousands of miles apart. Simply looking at your current phone bill for calls between far-flung offices can give you an idea of how much you can save.
Another significant benefit is for employees on the go. If your remote users connect to the company network via a Virtual Private Network (VPN), VoIP allows them to make phone calls from the road at no extra charge. One salesperson on an extended trip can save hundreds of dollars in cell phone or hotel long-distance charges. All the user needs is a “soft phone,” (software that lets a laptop function as an IP phone), a PC microphone, and speakers.
Other familiar and essential phone system features like caller ID, call forwarding, simultaneous ringing across multiple phones, and other features you would find in PBX systems are available in most VoIP systems. VoIP also works with advanced Computer Telephony Integration (CTI) applications, such as call center management. These popular applications can prioritize incoming calls based on the caller’s identity and automatically bring up callers’ account information as the phone is answered. However there is little difference in this arena between VoIP and modern digital phones.
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VoIP weaknesses
Cheap calls and portability are great, but there are other issues you need to consider before you decide whether it's for you. The most important thing to keep in mind is that VoIP won't be as stable or reliable as your normal phone line purely because more components need to be working for the service to be up.
While the quality of VoIP is improving all the time, bear in mind that if your broadband speed isn't up to scratch it won't stack up to a normal phone line. VoIP does take up your bandwidth. The generally accepted equation is 1MB download per 10 minutes of conversation -- take into account roughly how much time you spend on the phone a month and see whether it will affect any download restrictions that may be on your broadband service. If your Internet speed falls below a minimum level then you will probably experience choppy sound and delays.
Doing other Internet related activities while making a VoIP call can also affect quality, depending on your connection speeds. If you have a fairly slow broadband connection, try not to make downloads while on the phone.
Service availability may be the Achilles' heel of the VoIP industry. Read your provider's warranty or terms of service for disclaimers in service interruption. Most offer service "As Is" with no statement of "uptime".
And finally, don't throw away your existing phone. Using a VoIP service requires at least the electricity on and your Internet connection running -- if either of these two are out during an emergency, you won't be able to make calls, whereas you'll still be able to with the normal landline. Some VoIP services, however, provide an automatic forwarding service to your analog phone should the power or the Internet connection ever be down.
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What do you need to get started?
Depending on the type of service you have, you'll need some/all of the following to make calls:
A high-speed Internet connection: A multiple channel connection with bandwidth greater than 2 Mbps. Cable, DSL and T1 or T3 services are all broadband. The type you choose will depend upon availability, your budget and the amount of telephone traffic you anticipate.
Something to speak into and hear with: An adapter that lets you connect your traditional phones to the network,
OR an IP phone you can plug into your computer network,
OR a Softphone, software and an earpiece or microphone and speaker combination.
An account with a VoIP provider: You must sign up with a company that provides real-time, two-way voice communication using the Internet protocol. Visit myvoipprovider.com to find a provider.
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Products
IP Phones
IP phones, also called VoIP phones, SIP phones, Internet phones or broadband phones, are designed to connect directly to the Internet. There are both wired and wireless (Wi-Fi) IP phones available. The big three manufactures of VoIP phones today are Cisco, Snom and Polycom. Some Cisco IP phones also offer video, however both parties need to have a video IP phone to make a video call.
VoIP phone functionality can also be implemented with a PC or laptop if you have the Softphone software and a headset or microphone and speakers. For more information, see VoIP software.
Analog Adapters
You can continue to use your current analog telephone to send and receive VoIP calls, all you need is a little gizmo called an Analog Telephone Adapter, or ATA. You simply plug your phone into one end and plug the ATA into an unused Ethernet port on a broadband router or other connection point to the Internet.
An ATA will allow you to retain your current investment in analog phones, fax machines, and speakerphones. However, keep in mind that IP phones are getting cheaper all the time, and have some cool features.
Gateways
A VoIP gateway is a network device that is the interface between a telephony (PSTN) network and an IP network (such as the Internet). Among other tasks, a VoIP gateway digitizes analog voice signals into digital packets. Typically, you can get a combination VoIP gateway, phone jack, Ethernet router and firewall in a single unit for under $100.
Look for a VoIP gateway that has a minimum of three ports: a standard RJ-11 telephone jack and two RJ-45 ports - one for a broadband modem/router and one for a computer or network sharing device. Keep in mind any additional requirements you may also have for connecting fax machines, speakerphones, and modems.
Software
VoIP software is commonly used to emulate the functions of a telephone using your desktop, laptop, or Pocket PC. This type of arrangement is known as a softphone. Of course, you will need a headset or speakers and microphone as well. Or you can get a USB phone that plugs into your PC. Some popular VoIP software available today:
Skype. Skype is probably the most popular of all, and is available for free. Windows, Mac, Linux and PocketPC versions available.
Firefly. Firefly from Freshtel is also free and is based on open-source software released under the GPL license.
eyeBeam. eyeBeam is Xten's new VoIP softphone software that replaces their X-PRO and X-Lite offerings for Windows, Mac and Pocket PC.
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Beyond Basics
PBXs
The Internet Protocol Private Branch eXchange (IP PBX) is telephone switching equipment that resides in a private business instead of the telephone company. An IP PBX delivers employees dial-tone, the ability to conference, transfer, and dial other employees by extension number as well as many other features. Voice transmissions are sent via data packets over a data network instead of the traditional phone network.
Host Based or Virtual PBXs
A business phone system as a service over the public telephone network and internet. You don't have to install or maintain phone switch hardware.
On Premises
While large IP PBX vendors continue to build on server-based platforms, some international vendors are taking more unique approaches to small-business VoIP systems.
Among the distinctive small-business VoIP products emerging is an embedded IP PBX appliance for small offices that fits in a briefcase. Or, for customers not interested in any extra hardware, another VoIP system uses peer-to-peer technology in IP phones, eliminating the need for an IP PBX. Users of these types of products say the gear is more focused on the needs of small-office phone systems and provides a good cost-saving alternative to expensive server-based IP PBXs from larger vendors.
Digium's Asterisk software is making inroads in the VoIP PBX market. Asterisk is a full-featured PBX implemented in software based on Linux.
Existing phone system integration
Analog VoIP gateways are used to translate IP voice traffic to analog traffic. They can be used as a gateway to support an IP-PBX system to provide connectivity to a telephone carrier; or, as a gateway to allow traditional telephone systems to extend services across an IP network. For example, they can be used to establish a VoIP trunk between two PBX systems. Or, to allow a remote office or home user to connect to the corporate telephone system via the Internet.
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VoIP Terminology
Here are some of the more common VoIP terms and their definitions:
ATA - Analog Telephone Adapter. A device that connects between an analog telephone and an Internet connection port, and allows you to use a standard phone to make and receive VoIP calls over the Internet.
FXO - Foreign Exchange Office. A device that connects with a Central Office (CO) or PSTN analog line.
FXS - Foreign Exchange Station. A device that connects with an "end-user" device such as a telephone or fax machine.
IP PBX - IP Private Branch Exchange. A business phone system that offers advanced phone services between VoIP and PSTN networks, such as music-on-hold, automatic call-routing, voicemail, and call transfer.
IP phone - also called an Internet phone or broadband phone. An IP phone plugs into a broadband Internet connection to make and receive VoIP calls over the Internet.
PSTN - Public-Switched Telephone Network, is the commonly-known telephone network. PSTN is a circuit-switched network.
PSTN Failover - an optional port on an IP phone or ATA device that connects to the PSTN network in case your Internet connection or electrical power goes down. This configuration requires you to have a regular telephone line and service.
SIP - Session Initiation Protocol. One of the newer, more common signaling protocols used for VoIP.
Softphone - a "software" phone on a PC that can send and receive calls over the Internet.
VoIP - Voice over Internet Protocol, which is a technology that allows you to make and receive phone calls and faxes over the Internet instead of through the telephone or cellular network.
VoIP Gateway - device that converts analog voice signals to digital IP packets for communication over an Ethernet (LAN or WAN) network.
VSP - VoIP Service Provider
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