What is VoIP?

VoIP (Voice over Internet Protocol) is the ability to use the internet or your broadband connection as a telephone. All you need is a reliable broadband connection and a voice service provider.

How does it work?

VoIP treats the voice like any other piece of information that is being sent over the internet. It converts soundwaves (voice) into packets of data. These are sent over a computer network or the internet to the recipient where they are converted back to soundwaves. The conversion process is handled either by a PC or a telephone adaptor plugged into a broadband connection.

The technology has been around since the late nineties. But the quality’s not been there to give it credibility as a mainstream service. This is changing as technology improves. A recent report in The Australian suggests that VoIP is becoming a mainstream tool for business as ease of use increases and quality of service improves.

What are the benefits?

Improved quality, greater ease of use and definite savings make VoIP a viable option for business

VoIP offers significantly cheaper call costs for all types of calls, although the best savings to be made are for those who need to make long distance calls regularly. Getting set up with a VoIP system can seem complicated at first, although now you don’t even need a PC to make use of VoIP technology. You can purchase an adaptor that enables you to hook up any standard landline phone to the internet and make VoIP calls without a computer.

For even more flexibility, VoIP calls can also be made using your mobile handset in the conventional way with calls treated as a data stream and sent as a VoIP call.

As technology advances rapidly in this area, VoIP is now being widely used by large companies and telephone carriers. You may not have realised that when you use one of the freely available discount calling cards, you are probably making a VoIP call.

If you make regular long distance calls, then VoIP is definitely worth looking into.

Further reading:

“Rebel with a pause comes into its own,” Ian Grayson, The Australian ExecTech, May 22, 2007, p.4

An Introduction to VoIP in Australia, viewed 22 May, 2007, http://www.beyondlogic.org/VoIP/