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VoIP
What does VoIP stand for?
VoIP means Voice Over Internet Protocol, also known as IP Telephony, or Voice Over the Internet (VIO).
What is VoIP?
VoIP is a new way to make and receive calls over the Internet much like sending and receiving emails. Phone calls are transferred into data and sent through high-speed Internet. There are four different methods of communication which VoIP offers: computer to computer, computer to telephone, telephone to computer, and telephone to telephone.
How does VoIP work?
First let's define the difference between circuit switching and patch switching. Circuit switching routes your call through the switch at your local carrier to the person you are calling - we use this when making a phone call with a normal telephone. VoIP uses patch switching, which is more efficient since it transmits compressed data called a packet. The packet of data is then sent from one system to another. Patch switching allows several telephone calls to the same space that only one call would inhabit in a circuit switched network - a key reason why VoIP is much cheaper.
VoIP vs. Analog PSTN (Public Switched Telephone Network) Lines
The question becomes, why choose VoIP over conventional telephone systems? The answer is simple. COST! COST! COST!
Although there are multiple discounts and rates that you can receive from your telephone company by using PSTN, Internet calls can reduce those rates in half. VoIP is significantly cheaper! By going online, companies who make long distance calls frequently to customers or offices in multiple locations can save dramatically on their phone bill.
Businesses have the option of choosing multiple area codes within and out of state. By choosing an area code of an important out-of-state client, you give them ability to call you locally at no expense to them. It also saves you from paying toll free costs of incoming calls.
If traveling is an integral part of your business, the VoIP phones are an excellent option. Outgoing and incoming calls can be received from your local number even if you are traveling internationally, provided there is Internet service. Clients can reach you with the same phone number at any location and it does not cost you anything extra.
Other advantages of VoIP over analog PSTN lines include such features as voicemail, conferencing, three-way calling, music-on-hold and other digital features.
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