March 2006
VoIP in Small Business:
Is it right for you?
by Clara Fyffe IAVOA Corner
Voice Over Internet Protocol, or VoIP, has been around for several years. In fact, you may have used it without really realizing it. Simply put, VoIP is transfer of voice communications over the Internet or any other IP based network. Although VoIP does not require the Internet, for the purpose of this article we will look at VoIP on the Internet for small business use.
Generally, telephone service
via VoIP costs less than equivalent service from traditional sources. Some
cost savings are due to using a single network to carry voice and data, especially
where users have existing under-utilized network capacity they can use for
VoIP at no additional cost. VoIP phone calls (even international) are widely
regarded as free. There are a number of services that have sprung up to facilitate
this type of "free" VoIP call. Examples are Vonage, Google Talk,
Skype, and Yahoo Messenger.
VoIP makes some things easier and cheaper compared with traditional phone
networks:
1. Incoming phone calls
can be automatically routed to your VoIP phone regardless of where you are
connected to the network. If you take your VoIP phone with you on a trip and
connect it to the Internet, you can receive your incoming calls.
2. Subcontractors and call center users can take advantage of VoIP phones
because they can work from anywhere, assuming adequate Internet connections
are available.
3. VoIP phones often can integrate with other services available over the
Internet, including messaging, video phone and data file transfer, while holding
a conversation or phone conference.
VoIP currently has a few shortcomings that have led many to believe that it
is not ready for widespread use in a small business environment or home use.
With VoIP, when you start speaking into your phone, your voice "message"
is virtually broken apart into tiny bits and scattered through a vast multitude
of wires and electrical circuits until it reaches the recipient of your call.
And instantaneously, before your voice reaches his or her ear, that "message"
must be pulled together again into a recognizable sound.
Currently, since no VoIP has the capability of always getting those little pieces pulled back together at the same exact moment or without losing some pieces along the way, users may face problems with lag or jitteriness. Firewalls can also cause transfer problems.
Conventional telephones are connected directly to telephone company phone lines, which generally keep their connection in a power failure due to back-up generators or batteries at the telephone substations. However, most small business VoIP equipment uses broadband modems and other equipment powered by household electricity, which means that if your power goes out, so goes your phone service.
In some instances, broadband connections may be less than desirable, which is one of the causes of lost or delayed voice responses over the VoIP lines. Most likely, this would occur along congested networks or within companies that attempt to use VoIP as their main lines.
Telephone companies, of course, are not pleased with the wide-spreading implementation of VoIP technology. Many people are giving up landlines and using mobile-type devices exclusively. I, for one, use my cell phone only for long distance service because my local telephone company charges 13 cents per minute for long distance calls and I refuse to pay that fee. This loss of income from people like me and companies in general is causing the traditional phone company to hustle to find another way to re-gain our business. What they come up with will be interesting to see.
The most troubling aspect of exclusive use of VoIP and/or cell phones - and one to strongly take into consideration - is their use in an emergency. Recently highlighted in the news, these systems are generally not available or unreliable for emergency use at this time. The nature of VoIP, with the "split pieces" and multiple networks, makes it difficult, if not impossible, to locate a user who has entered the 911 code. Now, all cellular phone companies and several VoIP companies are working hard to find a solution. Until then, be sure to check with whatever company you choose as to whether their calls are 911-traceable. It could be a matter of life and death.
When all is said and done, the best you can do is research the many companies out there now who are offering VoIP service. Compare their pros and cons carefully. Ask about the 911 capability. Then decide what works best for your situation.
For those of you wanting to know more than you ever thought possible about VoIP and all that it involves, I recommend you skip over to the following website http://computer.howstuffworks.com/ip-telephony.htm and read "How VoIP Works" by Robert Valdes. This is a lengthy but very informative article, quite technical, yet I found it fascinating, the things technology is up to nowadays! Enjoy, and may you make the right decision for you and your business.
Clara Fyffe, IAVOA
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