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Voice-over-IP (VoIP)

Voice-over Internet Protocol (VoIP) is a revolutionary technology that allows voice to run over networks using the world's most widely used data format-Internet Protocol (IP). This uses the power of the Internet to handle the growing demands of communication both within and outside of your organization.

VoIP can:

  • Increase your company's efficiency and productivity

  • Reduce costs

  • Enhance employee and customer satisfaction.

  • By 2010, 40% of all business phone lines - approximately 180 million - will be VoIP-based.


  • Reduced telecommunication expenses: lower usage costs for local, long-distance and international telephone calls

  • Lower cost for intra-office calls

  • Lower cost of phone system support and maintenance

  • Reduced cost of cabling (only one cable for entire communications network)

  • Possible elimination of some leased phone lines


  • Remote building/staff at a branch office: Can use and benefit from features and functions of the PBX at the central site or headquarters, such as voicemail, music-on-hold, telephone set displays, message lights, call transfer and many other features.

  • Employee out of town/outside US: Customer calls company's main number, dials his or her extension, and the employee's telephone rings anywhere in the world if they have Internet access, just as if they are in the main office.


Types of VoIP

There are two kinds of VoIP-external and internal.


  • Local phone company provides only one circuit for your voice and data communications.

  • Since all information is using the same network, the risk of quality of service issues increases. Trouble in one area will affect service levels in the other.

  • Voice quality must be implemented by the telecom carrier or when a large file is downloaded, there will be noticeable degradation in telephone sound quality.

  • Uptime and reliability is not equal to the pristine level of service normally achieved by dedicated telephone networks.

  • External VoIP does not always require equipment upgrades, and service can be received in either analog or digital T1 formats. If you already have a T1 connection, the same T1 card can be used for the VoIP T1 handed off by the Telco in ready to plug-in condition.


  • Voice traffic can be carried within your organization on your Local Area Network (LAN) or Wide Area Network (WAN), allowing the telephone and voicemail systems to be replaced with a communications server.

  • A business can leverage its existing infrastructure investment (computer and data networks) and potentially gain new features and capabilities not available with the previous telephone system.


  • Quality of Service (QOS): With traditional data running over IP networks, it usually doesn't matter if there is a very slight delay in the transmission of text, numbers or even graphics. But even a momentary delay with voice-over IP could mean that a user misses an entire word of a conversation, which would be highly detrimental to an organization and could reflect poorly in the image of the company.

  • Prioritization of network services: As voice data is added to all the other data that is transported on IP networks, cluttering can occur which may lead to service problems. A common solution is to give voice data precedence over other IP data on the network. This would help ensure that voice data is transferred rapidly and accurately and without interruption.

  • Security: Because voice data is now packetized and transmitted over the IP network, it is susceptible to hackers, spyware and malicious attacks. A hacker can gain unauthorized access to conversations, and can record them or route them to other users as well. Security can be greatly enhanced using various encryption methodologies.


  • New businesses, expansions of existing businesses

  • New building projects/brownfielding/greenfielding/redevelopment

  • Companies with robust data or computer networks, but older telephone, PBX or Centrex systems

  • Organizations that frequently move staff within and between various locations

  • Enterprises with remote workers, at-home workers, telecommuters, virtual offices or staff who are all highly mobile and have broadband Internet access

  • Businesses that have multiple branches and need to communicate via voice and data between the headquarters and among the branch offices