Understanding the Buzz Surrounding Business VoIP

by Yuyutsu Sen on October 14, 2011

VoIP, an acronym for Voice over Internet Protocol, is a new technology that has significantly changed the way businesses communicate. It refers to the transmission of voice data using the same technology that’s used for data transfer on the internet. The communication protocol used is the same as the one used for, say, sending data contained in an e-mail. The technology can dramatically bring down the cost of business telecommunications and boost productivity.

VoIP offers a number of options and features that are unavailable in case of traditional telephone technology. In spite of the benefits, some businesses are still skeptical about the technology because of unfounded fears like substandard audio quality, expensive or complicated implementation and service interruption during electricity outages. Most of these concerns arise out of ignorance. Moreover, the advantages offered by a Business VoIP System will be far greater than any minor disadvantages.

Over the last decade the quality of VoIP services has improved greatly. Earlier it was necessary for the parties wanting to communicate via VoIP to have access to a computer, but now the technology has evolved to enable calls through conventional telephones as well. It is possible to get access to additional options by choosing feature-rich VoIP phones. This has encouraged many businesses to opt for VoIP systems over traditional telephones.

Strong increases in revenue and subscriber growth rates have firmly placed the technology on American telecommunications map. Initially the US VoIP market was limited to pure play or non facilities based VoIP service providers like Skype, but now internet, software and consumer electronics giants like Google, Yahoo!, Microsoft and Apple have also entered the market. Recently, Skype was taken over by Microsoft.

The growth of VoIP in the US mainstream mobile telecommunications sector is driven by the AT&T and Verizon Wireless decision of advancing to open access LTE platform for their 4G ventures and 3G network deployment of the Clear WiMAX network used by providers like Sprint Nextel for mobile services. According to the estimates made by TechNavio, growth at a CAGR of 57% is expected in the North American mobile VoIP market. The research also indicates that the growth is driven by the need to reduce the cost of communication.

Mobile VoIP does not require any major equipment or investment. As voice is transmitted over the internet, the need to transfer signals through substations, base stations and cells is eliminated, ultimately reducing cost. The technology also removes the need to maintain separate data and phone networks. Businesses can simply shift their IP phone to a different broadband jack. Click here for further information on business broadband and the role it plays in VoIP systems.

VoIP technology also increases the flexibility of business communications. The system can be used anywhere as far as broadband connection is available. This means that it is possible to make and receive calls on regular phones, cell phones as well as laptops. A number of VoIP service providers also offer the option of automatic fax and voice mail forwarding to standard email inbox. VoIP is an affordable and flexible technology that can greatly enhance business communications.

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Written by: Yuyutsu Sen. www.digitcom.ca.

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