VoIP stands for voice over Internet protocol. It is the name of a new communication technology that will change the meaning of telephony as we know it. Simply it means voice transmitted over a computer network. Although the word "Internet" is part of the acronym, it does not mean that it only works over the Internet. Internet protocol (IP) networking is supported by all sorts of networks: corporate, private, public, cable, and even wireless networks. Thus VoIP can runs over any type of network.
Currently, the preferred type of network in the corporate sector is the private dedicated network while for telecommuters and home user, it is broadband.
Unlike traditional telephony, you can access your account on the VoIP network with a desktop IP phone, wireless IP phone (much like a cell phone) or through a software application on your laptop or desktop computer. Voip is truly portable. You can literally pickup your bags and move to another location with your office, city or around the world without having to forward your calls to the new location!
VoIP is sometimes called IP telephony (IPT). Strictly speaking, IPT refers to telephone calls carried over the organization’s local area network (LAN) such as a single building location, a campus-like network, or even a LAN within your home. When IPT crosses over to other external network including LAN operated by the same company or other company over the Internet, it becomes VoIP.
How is VoIP different from traditional telephony?
Traditional telephony is called POTS which stands for plain old telephony system. POTS runs over PSTN or public switched telephone network and uses a method called circuit switching to enable calls. Circuit switching is akin to connect two locations together using physical wire via a switcher. VoIP on other hand enables telephony services to operate over computer network using packet-switched protocols. VoIP put voice signals into packets, much like electronic envelope, that contain the caller's and receiver's network addresses. These VoIP packets can transverse any VoIP compatible network and connect callers to receivers.
Regular PSTN is expensive but customers have no choice as they must rely on it on a daily basis. Consumers as well as companies that must rely on POTS on a daily basis know what the POTS way of telephony means to their bottom line. Because VoIP uses packets, much more information can be carried over the network when compared to traditional telephony. Due to this, voice over Internet Protocol can greatly reduce telephony cost besides enhancing productivity.
“Voice over Internet Protocol” is also more reliable. Routing with circuit-switched networks such as POTS is less dynamic than with packet-switched networks. With the POTS, if a line is down, the call cannot get through. In a packet-switched network, there are multiple routes and packets can travel any of the available routes. If one of the lines supporting the network is down, the packet can switch to another working route to keep the call up.
“Voice over Internet Protocol” appeals to those who want to use their computer network to carry their telephone calls, thereby saving the expense of running different networks for each.
Many businesses throughout the world and consumers in more developed countries have turned to VoIP and integrated networking as their main system for data, voice, and video.
As you can imagine, VoIP is a win-win for everyone. The added flexibility and quicker response times translate into greater customer satisfaction and increased productivity throughout your organization.