VOIP - VOICE OVER INTERNET PROTOCOL

"Voice Over Internet Protocol" (also called VoIP, IP Telephony, Internet telephony, Broadband telephony, Broadband Phone and Voice over Broadband) allows people to make telephone calls, use voice instant messaging and teleconference over the Internet or through any IP-based network.

VoIP works by converting the voice into a digital signal that travels over the internet then converts it back at the other end. It can be used by way of a regular analogue phone, dedicated VoIP phone or headset/microphone connected to a computer system using a software programme, with the end user able to receive the call through their own computer or on a normal phone number.

Companies providing VoIP service are commonly referred to as providers, and protocols which are used to carry voice signals over the IP network are commonly referred to as Voice over IP or VoIP protocols.

VoIP can facilitate tasks that may be more difficult to achieve using traditional networks:

• The ability to transmit more than one telephone call down the same broadband-connected telephone line. This can make VoIP a simple way to add an extra telephone line to a home or office.
• Incoming phone calls can be automatically routed to an VoIP phone, regardless of where the use is connected to the network. (So you can take your VoIP phone with you on a trip, and wherever you connect to the Internet, you can receive incoming calls).
• Free phone numbers for use with VoIP are available in the USA, UK and other countries.
• Call center agents using VoIP phones can work from anywhere with a sufficiently fast and stable Internet connection.
• Many VoIP packages include PSTN features that normally cost extra, such as 3-way calling, call forwarding, automatic redial, and caller ID.
• VoIP is location independent, only an internet connection is needed to get a connection to a VoIP provider.
• VoIP phones can integrate with other services available over the Internet, including video conversation, message or data file exchange in parallel with the conversation, audio conferencing, managing address books and passing information about whether others (e.g. friends or colleagues) are available online to interested parties.

VoIP is therefore a core technology that drives everything from voice-chat software loaded on a desktop PC to Mac full-blown IP-based telecommunications networks in large corporations. (To an investor VoIP is a single technology investment with many revenue streams, to an enterprise network engineer it's a way to simplify the corporate network and improve the telephony experience for users of the network, to the home user, it's a really cool way to save money on the old phone bill.)

VoIP has been around for many years in various forms but the sudden success of the freeware VoIP chat program Skype in 2005 lead to a sudden growth in awareness and take-up. Soon other VoIP providers like Vonage and Cisco Call Manager were also enjoying a boom in demand and more traditional telecommunication companies like BT were jumping on the band wagon.

Skype is an instant messaging program that happens to have a peer-to-peer (modeled after Kazaa) global voice network at its disposal, so you can use it to call people on your buddy list using your PC or Mac. All you need is broadband, a microphone, and a pair speakers or headphones. Voice calling alone doesn't set Skype apart from other IM applications like AIM or Windows Messenger--they also support voice. But Skype supports voice calling in almost any broadband-connected network environment, even networks with firewalls that often break other voice-chatting apps. Plus, Skype's variable-bitrate sound codec makes it less prone to sound quality issues than its predecessors. No surprise that Skype's official slogan is "Internet Telephony that Just Works" and over 150 million people have downloaded the Skype software.

New developments include video calls through providers like Skype which are revolutionising the way people communicate with each other around the world, providing inexpensive calling and video calling for friends and families who could not afford to communicate regularly before. Another development is VoIP-enabled mobile phones utilising Wi-Fi networks to provide cheap or free calls, expected to be a commonplace feature of corporate phone systems in years to come.

Providers include:

SKYPE - was founded in 2003 by Niklas Zennström and Janus Friis and is now owned by eBay. With Skype people can communicate with anyone else around the world for free over the Internet provided both parties have downloaded the Skype software. Skype is available in 28 languages and is used in almost every country around the world. Skype generates revenue through its premium offerings such as making and receiving calls to and from landline and mobile phones, as well as voicemail and call forwarding. Video calling is simple to set up, it just requires a webcam (in addition to a headset or speakers and microphone). Once a webcam is available any Skype call can include video.

Conference calling is convenient and simple to initiate too - Skype can conference up to 5 people in a call on any computer and up to 10 people in one call if the people on the call are using a PC with an Intel Duo Core Processor. Using Skype to dial an ordinary phone or mobile phone is simple and saves money, Skype calls can be made to ordinary or mobile phone numbers using SkypeOut with low per minute rates. Having a Skype phone number offers convenience to contacts not on Skype, for an annual fee anyone can obtain a SkypeIn phone number with the area code of choice, enabling contacts outside the Skype network to call directly into Skype. Skype Voicemail enables people to leave messages.

Other free Skype features include:

• Global User Directory;
• Call Forwarding (Send your calls to up to three other Skype IDs);
• Instant Message (same as chat);
• Include groups of up to 50 in one chat;
• File transfer;
• Instantly send and receive big, hard-to-send files safely;
• Call logs;
• Mobility.

VONAGE - a leading provider of broadband telephone services with 2.4 million subscriber lines as of March 31, 2007. Their technology enables users to make and receive phone calls with a touch tone telephone almost anywhere a broadband Internet connection is available. They offer feature-rich and cost effective communication services that offer users an experience similar to traditional telephone services. Vonage's service is sold on the web and through national retailers and is available to customers in the USA, Canada and the United Kingdom. Residential Premium Unlimited and Small Business Unlimited calling plans offer consumers unlimited local and long distance calling, and popular features like call waiting, call forwarding and voicemail - for one monthly rate.

[This section is currently being updated - please check back soon.]