VoIP 101

[sUnShInE]

Voice Over IP (VoIP) aka Internet telephony. What is it? Where's it going? Where's it taking me?

VoIP refers to voice telephone calls which can bypass the typical public-switched telephone network and transmit voice calls over the Internet. VoIP enables phone carriers to provide both voice and data services over one line. A major advantage of VoIP is that it avoids the tolls charged by ordinary telephone service. VoIP scares and excites the telecom industry.

Why? Because just like it doesn't cost you anything to send an email, VoIP calls are free or extremely cheap, even if you're calling internationally. The savings are probably the biggest for businesses with offices around the world, who historically have had to pay the highest rates to call during the day.

Cool. Can I use it now? Sure. Rock and roll. For PC-to-PC calls, all you do is download some software such as freeware product Skype, plug in a headset and you're ready to go. Bear in mind that you do need an always-on broadband net connection to use VoIP, and your service is subject to computer -- if a computer crashes along the chain, your call gets lost. You can also use Skype if you've got a wifi-enabled PPC. For calls from your phone, you'll need to sign up with a service provider, who can supply you with all the hardware and software you need. For businesses, it's a project for the IT department.

Predictions for the future in the business sector are bullish. By 2008, the number of corporate telephone lines that use IP telephony will reach 44%, and by the end of 2005, 45% of European companies surveyed by IDC say they will have integrated voice and data traffic. VoIP promises not just to save money, but to improve key business functions, such as interacting with customers. If voice is integrated into the data network, then it can also allow all types of customer interaction - whether from a phone call, email or visit to the company website - to be tracked and analysed. This can make workers both more productive, and more efficient.

This isn't happening overnight, though it is happening. You can use VoIP PBX (private branch exchange) phones now, and shipments of PBX phones are expected to grow at an annual compounded rate of more than 20% through 2009, while use of the older/traditional systems will decline about the same rate. As a result, the old technology, which has alot of money invested into it, will dominate until about 2008 or 2009. In households, it's predicted that roughly 20% of broadband users will use solely VoIP by 2008.

In the U.S., VoIP has become a hairy political topic. The FCC has exempted Internet telephony services from the regulations and taxes of the standard phone system, which is part of the reason the calls are so cheap. And the FBI and other law enforcement agencies are riled because they can't keep up with the technology, so their options for surveillance are limited.

So, what's not to like? Well, state government's in the U.S. for one, are not pleased at the huge loss of tax revenue -- billions if you wanna be technical -- they'll lose via the FCC ruling. Telecom's are another. As they will struggle for a piece of the market, they're terrified that they'll sacrifice quality and cause disruption as they integrate the new technology. This is a concern as they'll all be grabbing for the market.

For techies, an important new software solution has just been discovered: Wifi-VoIP handoff. Here's roughly how it works: You're on a VoIP call, over a wifi network. Instead of service disruption, your call gets handed off to the next wifi access point, leaving you free to roam and chat to your heart's content. The software will be demonstrated at SuperComm 2004 in Chicago, June 22-24th.

Enjoy.