"VOIP - Short for Voice Over Internet Protocol, a category of hardware and software that enables people to use the Internet as the transmission medium for telephone calls by sending voice data in packets using IP rather than by traditional circuit transmissions..." (quoted from Webopedia Computer Dictionary).
Uses
VOIP has become a growing method of communication in the modern world, especially in sales-oriented jobs. It has been integrated mostly for business purposes to replace conventional phone calls. The methods of use can be classified into three major categories:
- To interconnect VOIP phones within a single building using the building's Local Area Network (LAN)
- To interconnect VOIP phones between multiple locations of the same organization using a backbone network
- To interconnect VOIP phones to regular telephones in different organizations or for sales purposes
Benefits
Toll-Free Calls
The main purpose of VOIP is to provide a method of cheap yet extensive communication. Regular telephone calls can become costly if used too frequently, yet with VOIP one only needs to pay for a good internet connection and subscription to a VOIP service. With these two facilities handy, VOIP becomes a capability to make limitless phone calls through the internet. Although the person at the other end may be using a regular phone, the VOIP user either uses a computer or VOIP phone to communicate.
The major advantage of VOIP is that it allows the user to make as many phone calls as they like for a fixed price instead of being charged by the minute. This makes a huge cutback on costs for jobs such as telephone marketing that require making many phone calls for hours every day.
VOIP can become low-cost or toll-free for people who are using only the internet to communicate. If both or all users are using the internet to communicate, VOIP becomes a way of talking or conferencing without having to pay any additional fee apart from the regular fee for internet.
Reduced Wiring Costs
Using VOIP can also minimize building wiring costs in new or renovated buildings due to reduced wire infrastructure. Instead of using many cable systems such as data networking, telephone connections, and cable distribution, VOIP makes it possible to rely on less cabling costs in terms of maintenance as well as initial installment.
Easy Relocation
Anyone who has relocated their job or home knows how difficult it is to switch local phone numbers, not only for them but even more so for others who want to call them. Cell phones have largely helped to solve this problem, but cell phones are one of the costliest methods of common communication. VOIP provides a cheaper solution, since internet is a universal medium. A VOIP instrument can be relocated without central administrative support. With the internet being a global medium, VOIP allows users to communicate from anywhere in the world at one of the lowest costs possible.
Roaming Facility
To use your regular local phone you have to access it from your regular phone line. It would not be possible for you to make a phone call using your local phone line if you are somewhere else using someone else's phone. Here is another problem that VOIP helps us overcome. With VOIP, you can use someone else's phone to use your VOIP connection. Some VOIP systems allow people to walk up to a telephone instrument in any office and dial a couple of numbers on the keypad ("log in"). That telephone then temporarily assumes the configuration of the telephone line in your home office. By assuming your telephone number, your list of speed dial numbers, and your intercom settings, it becomes a temporary substitute for your VOIP phone in your office!