Voice over IP (VoIP)

Typical Applications:  Connection for multi-location businesses

It is critical for businesses today to understand the different classifications of VoIP.  What works great for your home and personal use is almost never adequate for businesses.  For any business looking to handle their voice requirements via VoIP it is very important to ensure the implemented solution is considered ‘business class VoIP’.  Unlike traditional phone service that delivers a phone conversation in a continual stream, VoIP services transfers voice in packets over the Internet or a private data circuit.  In other words VoIP is simply a protocol that turns voice conversations into packets of data for transmission and reconnects those packets on the other end.  If quality of service is important or if dropped calls are unacceptable, it is critical to implement the right form of business VoIP.  There are literally hundreds of different VoIP solutions on the market today, so unless you are an expert in the field it is important to work with a knowledgeable VoIP consultant like TelecomMedic that can help identify the optimum solution.

It is generally accepted that there are four different categories of VoIP:  Voice over the Internet, Business Class VoIP, Hosted VoIP & IP PBX.

Voice over the Internet (often the cheapest VoIP) uses the VoIP protocol to transfer voice over the public Internet.  This has absolutely no security or Quality of Service (QOS), and is often adversely impacted during peak traffic hours causing interruptions and dropped calls.  This is a residential product and is by no means meant to be used for a business application.  Vonage, Skype, and MagicJack are all examples of this type of service.

Business Class VoIP uses dedicated private lines or VPN tunnels through the Internet that are secure and have QOS and Service Level Agreements (SLA) to minimize or eliminate overloading or interruptions.  The Business Class VoIP service provider is typically a major telecommunications carrier such as AT&T, Qwest, Global Crossing, etc.  VoIP business phone service is mainly used to transmit voice over a company’s private data network allowing businesses with multiple locations to operate as if they are simply different divisions all operating within the same central office.  When implemented properly and by a reputable company, VoIP phone services can be a cost effective method for handling businesses voice needs.

Hosted VoIP solutions are a form of Business Class VoIP in which the main telecommunications equipment are housed offsite at a vendor's location, and the telephones and routers/switches are housed at the customer's facility.  Service is supplied via specialized T1 lines.  Hosted VoIP solutions are becoming increasingly popular with business customers, especially those that don’t have an IT department to manage a non-hosted solution.  This is an attractive offer to businesses as it reduces maintenance expenses and costs less than traditional voice solution.  However, customers should use caution when deploying Hosted VoIP solutions, as it is critical that the provider has the necessary bandwidth.  Additionally, many Hosted VoIP vendors oversubscribe their bandwidth to improve their bottom line...at the expense of their customers. 

IP PBX or true IP Telephony are products that are housed on the customer premises.  This method is similar to Hosted VoIP;  however, it requires specific equipment from a qualified vendor such as Avaya, NEC, Toshiba, Cisco, Nortel, etc.  IP PBX solutions also typically require an on-site, full time technician or IT department to manage the service and monitor capacity of the connection.  This method if often used in conjunction with SIP Trunking.

There are many misconceptions regarding voice over internet and how it works, such as:

• Are long distance calls free?

• Are VoIP services the only way to have remote workers be part of the same voice system?

• Is a VoIP business phone service the right solution for my business?

• Can we save money as an organization by implementing VoIP services?

Voice over IP (VoIP) is here to stay;  however, customers must be aware of its pitfalls.  Contact us today to determine what is right for your business.