VOIP: The Applications and Benefits

Initially, VoIP’s biggest benefit was eliminating long distance charges and, in most cases, that advantage did not justify the expense of implementing it. But within last few years, many other applications have emerged, making VoIP much more practical. Similar to PDAs incorporating cell phones, the same concept is evolving with, a laptop and an individual’s desk phone."

VoIP was declared defunct just a few years ago, but within the last year, phone carriers have been scrambling to unleash aggressive VoIP strategies aimed at consumers and businesses. Among the biggies: Time Warner Cable, Cox Communications and Comcast.

Though no longer free as it was when it emerged in the 1990s, VoIP is still a bargain. For as little as $20 a month, it features unlimited local and long-distance dialing, voice mail and caller ID. Even with fees that low, analysts are predicting that VoIP will be a $4-billion market by 2007, topping $4 billion for VoIP equipment alone in 2006. Some four million VoIP subscribers are predicted within three years, a hefty increase over the 378,000 who signed up for VoIP in 2004.

Multi-location businesses, from trucking companies and call centers to banks and insurance agencies, will benefit the most from VoIP.

Different types of VoIP vary in name, according to the provider or company, but in layman’s terms they are service-driven, equipment-driven or a combination of the two.

The equipment-driven VoIP is the most proven type because, in this application, the switch is at the customer’s premise and remains part of a network that allows other locations on the network.

Following are the major applications and benefits of VoIP:

• Unified messaging: A voice mail message is sent to an email address that can be retrieved by sound from a PC, saved or distributed like email. The message also remains in the phone system so it can be retrieved via phone.

• Centralized voice mail: All remote locations on a network can access one centralized voice mail so that all features are redundant, and the cost is reduced because voice mail does not have to be routed through all remote sites.

• Fax messaging: Similar to centralized voice mail, a fax is delivered via email format.

• 4-digit dialing. Business associates in cities like Jackson and New York may communicate long distance by simply entering their extension number, as long as both parties are networked via VoIP.

• Soft client. The user becomes part of the primary phone system when away from the office as long as he is connected by VPN through a broadband connection.

• Call center access from remote site. Like the soft client, call center employees may gain immediate office access to the primary phone system.