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New Technology Combines Voice and Data Communications

According to In-Stat research company, at least 20 percent of businesses in the United States are now using Voice over Internet Protocol (VoIP). VoIP offers flexibility and cost savings, so it's not difficult to understand why companies are adopting this new technology.

The Technology

VoIP works by converting voice signals from a telephone into digital signals, creating an IP data packet. This packet is then sent over a high-speed digital connection instead of an analog — or voice-only — line. Once the signal reaches its destination, it's converted back to a voice signal.

VoIP can consolidate voice and data on a company's own network or offer a valuable service to companies and consumers — usually at far less cost than traditional phone service.

In the consumer market, some services restrict VoIP calls to recipients with the same service. Other services provide equipment so VoIP calls aren't restricted, regardless of the call destination — local, long distance, mobile or international. However, VoIP providers have varying equipment requirements. Some providers utilize special equipment, while others offer adapters so current equipment can be used.

Benefits

VoIP benefits for business include integration of voice and data networks, moving toward a converged environment using an IP PBX on existing networks. Taking advantage of unused bandwidth makes traffic more efficient, while saving companies money. In addition, costs for calls are the same regardless of time or destination. Some VoIP network providers offer companies a privately owned communication network so voice and data traffic doesn't travel on the public Internet.

Considerations

According to the Federal Communications Commission (FCC), VoIP may have some disadvantages. Not all Internet voice services work during power outages and the service provider may not offer backup power. In most businesses, even in total power outages, traditional analog phone systems are still operable.

Another consideration is what to do with emergency 911 calls. VoIP services may not connect seamlessly with the 911 dispatch. Similar to cell phones, the 911 dispatch center may be unable to identify the location of the caller.

At this time the FCC doesn't regulate VoIP. Whether you consider the lack of regulation an advantage or disadvantage depends on your business. However, the FCC is beginning to examine what its role should be in this new environment. One thing is certain — VoIP is quickly becoming the mainstream technology for consumers and businesses because it gives customers control over features and flows while offering competitive rates.

 

 

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