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VoIP (Voice over Internet Protocol) uses a company’s network (Internet, LAN) for telephony, changing phone communications from a fully analog system into a digital one. VoIP works by converting voice signals into digital packets and then transmitting those packets on shared, public lines. Many messaging services like MSN and Yahoo! offer a type of IP telephony. When VoIP was first introduced, it hit the marketplace just when cellular phones were becoming popular. The popularity of cell phone service as well as the poor quality of VoIP left consumers not interested in the technology. Now VoIP has emerged as a hot commodity, overcoming its earlier flaws and businesses are taking notice. In 2006, VoIP service providers expect to top $14 billion in equipment sales.
Many VoIP issues, like lag time, have virtually been eliminated. The reliability and flexibility VoIP brings to a business makes it very appealing. Since IP telephony uses the same backbone as a company’s network, there is less equipment and cabling to maintain. If any employee moves to a new workspace, transferring their phone extension is as easy as plugging in the phone in their new location.
The biggest incentive for a company to switch to VoIP is that IP telephony will cost less than an analog phone service. For example, there is no extra charge for long distance calls. While switching to VoIP could save a company money, some features offered by a PSTN (public switched telephone network) might not be provided like 911 and 411 services. Some companies are now opting for a hybrid telephony solution, using both VoIP and standard telephone service for their business needs.
There are many advantages to using IP telephony. Since VoIP uses the same infrastructure as the Internet, calls can be routed outside the office. Take your IP phone on a trip and get your office calls anywhere there is an Internet connection. VoIP can also streamline e-mail, faxes, voicemail into one inbox, making everyday business details a little easier and efficient.
The potential for VoIP is seemingly endless. As technology continues to improve, so will IP telephony services. Just as computers forever changed how business is done, VoIP has the promise to do the same. Its portability, flexibility and ever-growing reliability will help VoIP gain a strong presence in the business world.
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