What Is Voice over IP (VoIP) and How Does It Work

By Jason Morris

Introduction To Voice Over IP (VoIP)

The way we make phone calls is changing. In fact in many
circumstances things have already changed. Take long
distance calls for instance, many service providers are
already using a technology called Voice Over IP or VoIP for
short. If you have never heard of Voice over IP (VoIP)
before, then the following article will change the way you
think about how long distance phone calls are being made
now, and about how all phone calls will be made in the
future. Voice Over IP (VoIP) is a method for turning
analogue audio signals into digital data that can be
transferred over the internet.

You may be asking yourself how this new VoIP technology is
useful. Well think about it for a few seconds. If it is
possible to turn analogue signals into digital data, then
VoIP can turn a standard internet connection into a method
for placing phone calls anywhere in the world virtually
free, except for your internet service fee, enabling you to
bypass the phone companies entirely.

Voice Over IP (VoIP) has the potential to completely
revolutionise the way the worlds phone systems operate.
There are many VoIP service providers that have been around
for a while, and are growing steadily. Now the worlds
leading telecommunications operators are waking up to the
endless possibilities of this new technology, setting up
VoIP calling centres around the world and promoting the
sales of Voice Over IP phone systems.

Making a call

With VoIP phone systems it is possible to make a call in
one of three ways:

ATA (gateway) – The simplest way to make a VoIP phone call
is through the use of ATA’s (analogue telephone adaptors)
sometimes called gateways. These devices enable you to make
use of your existing standard analogue phones. You simply
plug your standard handset into the ATA (gateway) then
connect the ATA to your computer or your internet
connection, enabling you to make VoIP calls. An ATA takes
the analogue signal from your standard phone and turns it
into a digital signal that is ready for transmission over
the internet. Some ATA’s (gateways) come with additional
software that is loaded onto a host computer, enabling you
to configure it for VoIP accurately.

IP Phones – These handsets look just like normal standard
handsets. They have an RJ 45 Ethernet connector instead of
the standard RJ 11 connectors. These phones have all the
necessary software and hardware to handle VoIP calls
already built in them. They connect directly to your
router, providing a very fast and cost effective entry into
the world of Voice Over IP.

Computer to computer – This is the easiest way to make use
of the VoIP technology. There are many companies offering
cost effective software that you can use for this type of
VoIP. Usually the only charge you pay is the monthly one
from your internet service provider, even for long distance
calls. All you need is a microphone, speakers, a suitable
sound card and a fast internet connection.

Chances are that you have already made a Voice over IP
(VoIP) call without even realising it. The major phone
companies already use VoIP to route thousands of long
distance calls through a circuit switch and into an IP
gateway. This is then received by a gateway at the other
end and then routed to another local circuit switch. More
and more companies are installing VoIP phone systems, and
the technology will grow and grow until it finds its way
into every business and household across the globe.

Voice over IP (VoIP) Features

Because with VoIP you can make calls from anywhere you have
access to a broadband connection, users can take their IP
phones or ATA’s with them on trips and still have access to
what is essentially their home phone.

Some people use a softphone to access their VoIP service. A
softphone is a specially developed software application
that loads the VoIP service onto your desktop computer or
laptop. Some even have an interface on the screen that
looks like a traditional phone. These softphone
applications allow you to place VoIP calls from your
laptop; anywhere in the world you have access to a
broadband connection.

Most traditional phone companies charge you for extra
features that are added to your account. With VOIP service
providers these usually come as standard. Features such as:

1. Caller ID

2. Call Waiting

3. Call Transfer

4. Repeat Dialling

5. Return Call

6. Three-Way Dialling

Some VoIP service providers also offer advanced call
filtering features. These additional features allow you to
decide how calls to a specific number are handled by using
caller ID information. They allow you to:

1. Forward the call to a particular number

2. Send the call directly to voicemail

3. Give the caller a busy signal

4. Play a "not-in-service" message

Many VoIP services also allow you to check your voicemail
over the internet or attach messages to an e-mail that is
sent to your computer or PDA. It’s best to check with VoIP
phone system suppliers and service operators exactly what
features they offer as package and service prices vary
greatly.

There are many other cost saving benefits that arise from a
streamlined Voice over IP (VoIP) phone system network. For
the network administrators, a VoIP phone system means they
only have one network to maintain instead of two. The
portability of the phone system is also greatly simplified.
This is because most VoIP phone systems can be configured
using a web interface, which can be managed by the network
administrator. The MAC (move, add, change) process is made
much easier, and you will not have to call your
system/service provider for every MAC you carry out. All
this means lower ongoing costs for your company.

Another cost saving for companies who implement a VoIP
system is, because multiple offices, no matter where they
are in the world are seamlessly connected, they can share
many of the features VoIP can offer, such as:

1. One single receptionist

2. Auto attendant facilities

3. Voice mail system

Choosing a VOIP phone system

If you have decided that a VoIP phone system is the right
step for your company, next you need to determine which of
your existing telephone equipment you are able to keep. The
potential cost savings that can be made through using any
existing digital equipment are huge. Many digital phone
systems can be IP enabled using minor hardware additions
and software upgrades.

When shopping around for potential systems you need to be
certain of the features they provide as standard and which
are optional cost extras. You also need to be certain of
exactly what is included with the system. Many suppliers
claim to include everything you need, but standard
components can vary from one company to the other. So you
need to sure you are comparing equivalent systems when
approaching potential suppliers.

You will also need to enquire about the compatibility of
existing equipment. The technology used in many VOIP
systems may affect the implementation of any existing
telephone hardware.

You will also need to ensure that any devices such as fax
machines, credit card processors, and security systems etc
can be integrated into your new VoIP phone system. You
should make any potential vendor aware of such devices so
they can provide you with a suitable phone system for your
requirements.

Finally, do not try to save money by buying used VoIP phone
systems. Remember Voice over IP (VoIP) is a new technology,
so even last years equipment is outdated. Also the
installation cost will still apply whether the system is
new or second hand, and the service costs may even be
higher due to reliability issues. To put it simply it just
isn’t worth the hassle, the higher secondary costs will
wipe out any potential saving.

Thanks for reading,



About the author:
Jason Morris is co-author, search engine optimization and marketing consultant of Business Phone Systems Direct. Specialists in the supply and installation of quality business phone systems and accessories from leading manufacturers. For a free quotation on one of our range of Panasonic phone systems and for free technical advice click Panasonic Phone Systems


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