INTRODUCTION TO VOIP TECHNOLOGY

ORIGIN OF VOIP

VOIP is a set of technologies that enable voice calls to be carried over the Internet (or other networks designed for data), rather than the traditional telephone landline system—the Public Switched Telephone Network, or PSTN.

The term VoIP was coined by the VoIP Forum which was set up in May 1996 as an industry group concerned with promoting and developing product interoperability and a high quality of service for Internet telephony products1. Initially, one of the main drivers in developing VoIP was the potential to cut the cost of telephone calls. Traditional voice calls, running over the PSTN, are made using circuit switching, where a dedicated circuit or channel is set up between two points before the users talk to one another—just like old-fashioned operators, plugging in the wires to connect two callers. The advantage of this is that once the circuit is set up, the call quality is very good, because it is running over a dedicated line. But this type of switching is expensive because the network needs a great deal of (mostly under-used)capacity.

The Nature Of Voice Over IP

What is Voice Over Internet Protocol (VOIP)?

Ever since the Internet 'took off' as a data network - for sending e-mail and browsing web sites - companies have been exploring the option of putting voice traffic on to the Net or other networks deploying the same technical specifications. Since the Internet uses particular protocols (known as Transmission Control Protocol/Internet Protocol or TCP/IP), this development is called Voice over Internet Protocol (VoIP).

So one could define VOIP as voice services over networks which use the Internet Protocol (IP) which might be the public Internet itself or public or private communications networks. A key distinction is between circuit-switched calls (PSTN) and packet-switched calls (VOIP)

What does VoIP look like?

VoIP services can take many forms:

• PC to PC(personal computer) when both caller and recipients would use lightweight headsets to talk over the internet
• Device to Phone: This is when uses SIP device/internet phone to make call to phones via internet. ]
• Mobile to Phone: Here, you can use your mobile phone to make VOIP calls

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What you need to make a VoIP call

To make a VoIP call, the consumer user requires VoIP software and a broadband connection to the Internet. The software will handle the call routing to make sure the call reaches the intended destination as well as providing the codec. The software can be installed on a variety of hardware devices including traditional telephone handsets (using an adaptor that plugs into the telephone3) or a PC or wireless device such as a Personal Digital Assistant (PDA). This use of software-enhanced end-user devices is one of the key distinguishing features of VoIP. Whereas the traditional telephone system contains its 'intelligence' within the network, VoIP makes use of the Internet model of intelligence at the edge of the network. This is often known as the end-to-end principle.

In order to make a call, an account with a VoIP service provider is also required. Different types of VoIP service are available, including services from traditional telephone carriers such as BT, and from specialised VoIP providers such as US firm Vonage and Luxembourg-based Skype. Some VoIP providers provide support only for PC-to-PC calls, while others provide the ability to make and receive calls from IP-enabled devices to users on the PSTN and on

mobile networks.

The Benefits Of Voice Over IP

Businesses are rapidly to VoIP because there are compelling advantages. Firstly, and most obviously, there are significant financial savings on running the network itself. One infrastructure carrying both data and voice, provided by one supplier, can be managed, maintained and upgraded much more efficiently than two separate networks for voice and data.

Secondly, and more importantly, while each network has its own value, that value is maximized when the two systems are consolidated. Computer applications and communications technologies can be intelligently linked to streamline the working environment.

Thirdly, VoIP allows organizations to integrate their telephone, fax, e-mail and other applications to capitalize on the benefits of unified messaging. Such a system can eradicate unnecessary interruptions while ensuring individuals always receive information in the most convenient format wherever they are in the world.

Fourthly, the system can be used to support flexible working practices, whereby members of staff work from home or in dispersed, 'virtual' teams. Using the VoIP network, team members can see when their colleagues are logged on to the LAN or using the telephone. VoIP offers improved bandwidth capabilities and makes video-conferencing a viable and cost-effective option for discussions between dispersed team workers.

Fifthly, VoIP technology can contribute to an effective knowledge management strategy. The larger the organization, the more information that must be shared, so an efficient communications system is particularly important. The VoIP network provides individuals with the opportunity to tap into colleagues' areas of specialism, allowing them to search for experts according to specific criteria.

Sixthly, an organization can also use VoIP to enhance relationships with its customers. For example, converged call centres, or 'IP contact centres', allow agents to answer all customer enquiry mediums, including telephone, e-mail, fax, web call back, web chat and instant messaging. Customers appreciate the flexibility of interacting with an organization that can handle feedback from a range of different sources, and are even more inclined to do business with those who can offer an integrated response.

Increasingly, residential consumers too are taking up the option of VOIP services. For them, such services offer:

• More choice of voice operators and tariff packages
• Cheaper services including 'free' calls
• New services such as conferencing
• Individuals can make money by setting up the VOIP calls for people and selling of VOIP call credits.

VOIP enables one to make free calls within VOIP networks and landlines in most of countries of the world and cheap call to mobile lines for as low as 0.01 euro cent

Current Position Worldwide

While Asia leads the worldwide roll-out of VOIP, North America is catching up fast, followed rapidly by European countries like Sweden and Austria. The lead shown by Asia is explained partly by the higher call charges than in industrialized countries, partly by the lesser investments in legacy networks compared to Europe & North America, and partly by the greater cultural willingness to embrace new technologies.

A snap shot of the position in a number of major countries looks like this:

• USA - Vonage of New Jersey already has over 100,000 voice subscribers on its DSL service. For a subscription, currently $34.99 a month (on top of their DSL line), customers can get unlimited calls within the US and Canada, and low international rates. Other companies, such as Net2Phone, are offering similar services. As a reaction to such smaller rivals offering cheap phone calls using VoIP technology, the established giants will soon be offering VoIP. Verizon Communications, North America's largest phone company, plans IP for the home by June 2004. AT&T has said it will introduce the service in the next couple of months as an option on its managed VPN (virtual private network) service based on its MPLS platform. Other telcos like Qwest and SBC have similar plans.. Time Warner Cable - working with Spring and MCI - is already offering VoIP on its broadband cable network. Other cable companies are following fast.
• Canada - More than any other North American company, Telus of British Columbia (under the leadership of its chief executive Darren Entwistle who used to work for Cable & Wireless) has pioneered VoIP. It has spent more than two and a half years and $200 million building an IP-based next-generation network. In November 2003, it launched a new hosted service called IP-One, which will try to introduce the benefits of VoIP to a new class of businesses, targeting those with as few as 50 employees. Bell Canada Enterprises has now announced its own three-year, $200-million plan to build an IP-based next-generation network. Also Allstream has announced it is joining forces with Inukshuk Internet, a Microcell subsidiary, and private U.S. investment firm NR Communications to build a $135-million wireless IP-based network in selected markets. Shaw Communications. of Calgary is working on its business plan and Rogers Communications. of Toronto has said it will be in the business soon.
• Japan - VoIP has already made a major impact in the Japan. Yahoo BB has 90% of its 3M broadband users taking voice as part of the service. Other VoIP providers include KDDI, PoweredCom, Japan Telecom, Fusion Communications, Nifty, and E-Access. NTT Communications - the long distance component of the incumbent NTT - is developing its own VoIP service and is now planning to interconnect with a number of rival VoIP services.
• China - Since it has no legacy infrastructure, new entrant China Unicom is building a VoIP network from the outset serving 300 cities in 30 provinces.
• Hong Kong - Here the full convergence of voice, data and video is already a reality for customers of the City Telecom broadband network which uses IP.
• Korea - Hanaro Telecom is a cable operator but it now provides VoIP telephones and claims a quality superior to that of mobile phones.
• Australia - The incumbent Telstra has already acted as contractor to Westpac, one of the country's largest corporations, in that company's move to full IP telephony and now announced it will launch a VoIP solution for small to medium businesses in the first half of 2004. Telstra's main competitor Optus already offers high-end, customized VoIP services for large corporate and government customers. A new company called Comindico claims to offer 'carrier grade' quality for its VoIP service by prioritizing voice traffic.
• New Zealand - As at September 2003, six companies had implemented VoIP solutions and around 100 were actively seeking bids. New Zealand Telecom itself has decided to go over completely to VoIP for its internal communications needs, but it plans to make the change over three-four years.
• Austria - Perhaps more than any other European incumbent, Telekom Austria has embraced the notion that its future lies in VoIP. Therefore it plans to spend between 500-600M Euros replacing its current network with an IP-based next generation network. It envisages moving from 1,240 switches in the PSTN environment to only 200 (plus some soft switches) in the IP world and it has expressed the view that it can reduce operating expenditure "by 40% at least".
• Sweden - Bredbandbolaget has 250,000 users of its VoIP service.

In our next post, we will take you on step by step on how to enjoy the technology of VOIP and make free calls.