Although it has a weird name, VoIP is quickly becoming a popular alternative to traditional telephone lines. It stands for Voice Over Internet Protocol, and it allows users to transmit voice communications over an IP network. This means you can utilize a computer and broadband connection to provide telephone service.
Right now this service is not yet widely used but companies and individuals are quickly assessing its value as a full time service. It could have a large impact on traditional telephone companies because of the cost structure – it provides very inexpensive phone service.
VoIP’s popularity is due almost entirely to its cost advantages. It is typically packaged with broadband Internet access and is billed monthly. There are no per-minute charges or long distance charges. For those who make international calls the savings are quite significant.
Businesses are drawn to VoIP because of the cost benefits as well. The price per extension is much lower than traditional PBX or key systems. They are also very easy to modify, as they can be managed on a PC or Linux system, which makes configuration and troubleshooting a breeze.
Should the planet move toward VoIP broadband service, long distance would become outdated. Bundling of telephone and Internet services will become the norm and the way we think about telephones in general may change dramatically.
Although it would appear that this technology is in a position to replace more traditional telephone systems, existing telephone companies most certainly will not be put out of business any time soon because of this technology. They will no doubt find ways to capitalize on it, specifically through bundled service mentioned above.
VoIP clearly has cost and flexibility benefits over traditional phone systems, but because it is so new, there are some challenges. VoIP may not be as reliable a system yet as networks become overloaded, and if the network goes down, so too does your communication lines. Power outages have the obvious affect of keeping computers and networks down also, which means no communication. Traditional phone systems have been integrated with emergency call routing systems to make it easier to locate an emergency call. With VoIP, this advantage is lost. Security is another major issue with traditional phone lines that is exacerbated by a VoIP system, as hackers could potentially find a way into your communication stream.
These problems are likely to be addressed by VoIP providers as time moves on. Improved networks, power backup systems, emergency integration and improved security are simply hurdles that can be overcome with time.
