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VoIP – An Overview
VOIP – You hear the term constantly but what does it mean? What does it do? What kinds of hardware and software does VoIP require? Is there a downside to VoIP? What about VoIP providers? What services do they provide?
This article will attempt to answer these questions by giving a brief overview of VoIP as a technology. We will define VoIP, explain what it does, discuss hardware and software requirements, talk about advantages and disadvantages, and briefly discuss what to look for in a VoIP service provider. Then we will take a peek into the future to see what’s in store for VoIP.
Definition of VoIP
VoIP is an acronym for Voice Over Internet Protocol. As its name implies, VoIP is a protocol (actually a set of protocols) designed to carry voice conversations over IP (Internet Protocol) networks. An IP network can be a small local network in a single building, a larger WAN (Wide Area Network) located in several buildings or cities, or the internet itself. The internet is actually a huge, worldwide IP network.
What does VoIP do?
VoIP provides a way of transmitting the sound of your voice, which is an analog signal, over the internet, which is a digital medium. It also provides a method of establishing a connection with another VoIP device on the internet, and to carry voice signals in both directions once that connection has been established. VoIP accomplishes this through use of specialized hardware and software.
What kind of hardware is required to use VoIP?
First of all, VoIP requires a high-speed internet connection. A quality VoIP connection requires a bandwidth of approximately 90Kbps (90 kilobits per second, or 90,000 bits per second). Since dialup internet typically will provide only about 50Kbps of bandwidth, quality VoIP calls cannot be made over a dialup connection. High-speed internet connections range from approximately 128Kbps for an ISDN connection, all the way up to 10Mbps (10 million bits per second) for a T1 connection. Cable and DSL fall somewhere between these two numbers.
In addition to a high-speed internet connection, VoIP requires some type of hardware to accomplish the conversion of analog voice signals into digital signals, and to convert these digital signals back into analog ones at the other end of the conversation. This hardware can be as simple as the sound card on your pc, which relies on the use of a PC softphone (a software application that creates an on-screen “virtual” telephone) to handle most of the VoIP tasks. Or the hardware can be as complex as a complete cordless VoIP hardphone with multiple handsets, which plugs directly into your high-speed internet connection – no PC is required.
What about VoIP software?
The type of software required for VoIP is dependent on the hardware being used. You can make use of your existing PC sound card by using a PC softphone application. The only addition required might be a headset or a telephone-style handset that plugs into your sound card.
If your are using a USB handset (also known as an IP handset) with a keypad and display, then a software driver similar to the one used by your printer or modem is required. If you are using an ATA (Analog Telephone Adapter – sometimes referred to as IP Adapter) then there is no software required at all – in fact a PC is not required to be present, just an active high-speed internet connection. An ATA allows you use your existing analog telephone with VoIP.
Ok, now we know what VoIP is, what it does and what is required to use it. But are there advantages or disadvantages to using VoIP. And what about the multitude of providers?
Advantages of VoIP
The two most attractive advantages of VoIP over traditional telephone service are significant savings in cost and the number of enhanced features that VoIP makes possible. In the area of cost savings, VoIP has a huge advantage over traditional telephone service. This is particularly true for long-distance calls – rates for VoIP are much lower, and even more so for international calls; in some cases VoIP long-distance calls can be placed for free or almost-free.
In addition, enhanced features such as caller ID, call waiting, multi-party calls, and voice-mail are part of the basic packages offered by VoIP providers; with traditional telephone carriers these features are usually extra-cost options. And the list of enhanced features available with VoIP includes options that are either extremely costly or not available at all from the traditional carriers. This includes features such as 1-800 service, videophone capability, and virtual phone numbers (a virtual phone number allows you to choose the area code for a number, regardless of your physical location).
There are other advantages to VoIP as well, but are there any disadvantages? And are they really serious disadvantages? Yes, there are some disadvantages, both perceived and real – two of the most talked-about are in the areas of 911 emergency service and call quality.
Disadvantages of VoIP
You may have heard that 911 emergency service is not available with VoIP. This was true several years ago, when VoIP first started gaining widespread use. This disadvantage comes from the fact that VoIP is not location-based; a VoIP phone number does not have to have any relation to your actual physical location. Because of this, 911 emergency services were not able to determine the physical location of the person calling.
This disadvantage has been overcome in most of the US and a number of other countries. VoIP providers have made great strides in their ability to route a 911 call to the proper location. They can do this based on the physical address you provide when registering for service. This basic 911 service is available to most VoIP users in the United States, as well as many foreign countries. So this much talked-about disadvantage of VoIP does not exist for the majority of potential customers.
The other issue sometimes raised with VoIP is call quality – that it is not as good as with the traditional carriers. There is some truth to this, but again it depends on certain factors. A typical VoIP conversation requires approximately 90Kbps of continuous bandwidth in order to maintain a quality connection. So VoIP quality can be dependent on the ability of your ISP to maintain proper bandwidth throughout the call. Most high-speed connections provide significantly more than the required bandwidth, but there may be small amounts of time where this drops below the limit.
Now that we know something of the advantages and disadvantages of VoIP, what about the many service providers advertising VoIP service? What do I look for in a service provider? How do different service providers compare?
VoIP Service Providers
There is a confusing array of VoIP service providers currently flooding the web with advertising. Some of these are small, recent startups, while others are full-service providers that have been in business for quite some time. Whether or not a given service provider will meet your needs depends on what those needs are. However, at a minimum, you should look for a provider that can provide basic local and long-distance service on a monthly basis.
VoIP providers have billing plans very similar to cell phone providers. VoIP plans will typically provide a certain number of minutes of local and long-distance calling per month. Unlimited plans are also available from most VoIP providers. You will likely want to choose a provider based on features included, reliability and good customer service. The full-service providers that have been in business for some time are probably the best bet if you are new to VoIP. Their installation and signup process is easier than some of the more recent startups, and they usually bundle the most features with their plans. Vonage is one provider who has been in business since near the introduction of VoIP, and they are a full-service residential and business provider.
So now that we know a little bit about VoIP, what happens next? Is VoIP here to stay? Or is it just a passing fad. The next section will attempt to answers some questions about the future of VoIP.
VoIP and the Future
VoIP is definitely here to stay. The popularity of the internet almost guarantees this. VoIP allows customers to use a technology that they already have (a high-speed internet connection) to enhance and lower costs for another technology (telephone service). This combination ensures the success of VoIP in the future. There will likely be some changes, however, and some of these will lessen the cost advantage that VoIP enjoys.
Government regulation is one such area that is likely to change. Currently, VoIP providers are classed by the FCC as data providers, rather than communications providers. This is an important distinction, because communications providers such as your local and long-distance telephone company are required to charge customers for some regulatory and licensing fees that do not apply to data (VoIP) carriers. This includes, for example, a surcharge to pay for the 911 infrastructure that allows 911 operators to determine the physical location of the caller. There are other taxes and surcharges that are designed to help pay for the nationwide telephone infrastructure. Congress has considered bills in the past that will change the classification of VoIP providers so that they have to pay some of these surcharges and taxes. It is unlikely that Congress will leave this amount of “free” tax money on the table for very much longer.
Another area that is likely to change in the future is in the area of bandwidth usage. ISPs would love to charge you for internet service based on bandwidth, rather than on a time-period such as monthly. There is strong resistance to this from business and consumer interests, but it may become a necessity, as bandwidth is not unlimited – as internet usage increases, new infrastructure must be added to handle the growth in traffic. Someone has to pay for this, and the end-user is the most likely target. Some ISPs are already charging business customers based at least in part on the amount of bandwidth they use, and the trend is likely to continue.
But, not to worry. VoIP will still be able to provide an enhanced telephone experience at a lower cost for a good long while into the future. This is true, once again, because of the fact that VoIP is a digital technology, and a technology that is still evolving and advancing rapidly. In summary, VoIP is here to stay, and is likely to be lower in cost than traditional service for quite some time to come. This is particularly true in the area of long-distance and international calling, and in the lower cost of enhanced features.
Next…Can you explain to me in terms that I can understand how VoIP works?