Thoughts and Opinions On Today's Important Issues

Saturday, December 17, 2005

VOIP: TELECOMMUNICATIONS IS NOW A DIFFERENT 4 LETTER WORD


I do not just write BLOGS to pass the day. Part of what I do is work with innovative developers in the Internet world structuring relationships for them. Here is something I have found that interests me these days

Did you ever wonder how you can lower your telephone bills? You want the features you have, low cost long distance and a better price than Ma Bell offers. Technology and the Internet have provided the new alternative.

Voice over Internet Protocol ,VoIP, is the practice of utilizing the Internet packet based networks instead of standard PSTN (Public Switched Telephone Network) to send voice data. This technology for transmitting ordinary telephone calls utilizing the internet, is also referred to as IP Telephony. The major advantage of VoIP is that it avoids the tolls, costs, and fees otherwise charged by ordinary telephone service providers and telephone companies. The savings are now passed to the end users.

VoIP are the four most desirable letters in today’s telecommunication world. The concept and technology was developed years ago, but due to the limited access of broadband and the poor voice quality, the VoIP concept was dwindled down. Revived about 2 years ago, where high speed broadband is more accessible and at an affordable cost with improvement to the voice quality, VoIP once again is making the big "buzz" in the telecommunication market. All the telecommunication companies are in it and everyone who heard of VoIP wants to get into it. This technology will soon replace all the telephone line in every home. The size of the market is endless.

There are three simple requirements you must have in order to utilize VoIP:

  1. Broadband. The minimum required bandwidth for voice packet is 30-60kbs so broadband is the preferable connection. Note: if a user is using DSL to gain broadband access, the user will not be able to replace the traditional phone line because they need to have the traditional phone line available to gain access to the broadband (although this practice may be changing so that users can get DSL lines alone). Only the users with cable broadband can completely replace their traditional phone line at this time.
  2. Service provider. User must sign up with a service provider to allow you to gain access to their server. Without a service provider, you will not be able to make calls.
  3. Hardware. You must have the right hardware to support the service. The hardware is usually provided by the service providers.

The VoIP market is still at its infancy. Many have heard of the technology and many already understand how it works and how to take advantage of it. Although the technology has been around for numbers of years, there is still a huge number of people who are still unaware of its advantages.

For the residential and business customer, the big advantage is cost. Unitz.ca is a supplier of VoIP service in Ontario as an example. Its "i-Line" service is its alternative to the standard telephone line. Simply plug the i-LINE VoIP gateway into a High Speed Internet connection and calls can be made.

As an example, its I-Line residential Ontario service at $22.95 per month includes Local Calls, unlimited Ontario Long distance calls, local phone number, 9-1-1 service, Caller ID, Call blocking, 3 Way, Call Waiting, Voice Mail, Call Forward and so on. It also offers Long Distance caller plans based on minutes or flat-rate and even includes a long distance service internationally to selected countries at a flat-rate cost of $59.95 per month or low per minute costs.

Similar plans are offered to Businesses as well at costs well below those offered by the local phone company.

Voice over Internet Protocol calling services can save users substantial sums of money. The market is expected to grow substantially over the next few years. The technology is getting better and better each and every day and many of the costs are lowering as well. As the availability of broadband increases and more people become exposed to VOIP the major Telcos will face considerable challenges as their legacy networks are forced to compete with the new-comers!

For additional information, contact Michael Arditti at Wyndham Hall Consulting at (519) 972-3989 or arditti@sympatico.ca