What is VoIP?

VoIP (Voice over Internet Protocol) is, most simply, telephone communication over the internet. By using modern computer technology, features of entire telephone networks can be put into compact hardware and emulated with ease, providing the features of normal telephone equipment and networks over a broadband internet connection, local network (LAN), or both, without using another actual telephone line.

Typical VoIP Scenarios

There are three main types of service that can legitimately be classified as VoIP:

1. In the most widely advertised type of service, you sign up with a VoIP carrier, usually for a flat rate of $20-25 per month for unlimited calls. They send you a small adapter box locked to their service which connects to your internet service and has a phone jack to plug in a standard telephone. This type of service is primarily residential and its main purpose is to cut long distance costs.
   • Pros: cost savings and ease of use.
   • Cons: limited flexibility due to being locked to that particular carrier, and if your Internet connection goes down so does your phone service.
2. Another scenario is internal VoIP, where the telephones inside a premise or business are VoIP and run on the computer network, typically connected to a VoIP server located in the business. Conventional telephone lines then connect this server to the outside telephony network. This service is typically used by small businesses, and is also used by large enterprises served by T1 or other PRI lines.
   • Pros: the ability to have a professional sounding telephone system with all the flexibility that VoIP offers internally without any disruption of telephone numbers, and the system works if the Internet connection drops, since outside connectivity is via traditional analog lines.
   • Cons: lack of flexibility with inbound call routing due to being tied to the traditional circuit switched network for incoming calls and lack of cost savings due to telephone lines still being part of the overall cost.
3. The third scenario is using a system that is completely VoIP. In this system, there is a VoIP server either on premises or hosted remotely, which connects to your VoIP phones and routes calls directly over the Internet via commercial VoIP carriers. This type of service is used by small businesses up to large enterprises.
   • Pros: flexible call routing and the ability to make as many calls as you need simultaneously (subject to the limits of your Internet bandwidth). The idea of "telephone lines" goes away in this type of system. Typically your carrier charges a per minute rate for each call, and the number of outbound or inbound calls is only limited by your hardware and bandwidth. A further advantage is that telephone numbers are not locked to one line, i.e. You can have many simultaneous calls initiated by dialing one number (think of it as unlimited line rollover), or set up special numbers for special needs quickly such as a temporary number for promotional use. There are significant cost advantages to this system also.
   • Cons: requires a stable Internet connection with adequate reserve bandwidth for your intended use. If the Internet connection goes down, so does your outside connectivity. Most VoIP carriers can port your present telephone number to them, but there can be a delay while this happens and usually a temporary number is assigned while this process takes place.

There is quite a bit of overlap between the second and third type of VoIP, and we can mix and match both traditional telephone lines and VoIP carriers to obtain both cost savings and the security of tried and true technology.