Ever since the birth of the internet, entrepreneurs with an eye to the
future have predicted that voice communications -- telephone services --
would eventually be merged with internet services. With the widespread
adoption of VoIP, that day has come, and it is causing a revolution in the
telephone industry.
In simple terms, a VoIP service allows you to use your broadband
(high-speed) connection to place telephone calls over the Internet. It is
not difficult to see how this is rocking the telecom industry to the core.
**It's all about cost**
Two things have made traditional telephone service providers like AT&T and
Bell so powerful. Their monopoly over local telephone services, and their
traditional stranglehold on lucrative and usually over-priced "long
distance" services. Both of these captive markets have been seriously
eroded over the last few years, as the reality of VoIP has started to sink
in.
In anticipation of the revolution that is now upon us, most aspects of
telephone service have gradually been opened up to competition. Most of us
now have a choice of providers for both local and long distance telephone
service. And the biggest reason for the new competitive environment is the
recognition that the widespread adoption of VoIP is inevitable.
**The development of VoIP**
VoIP has been developing slowly over the last ten years or so. Early
implementations allowed computer users to talk to each other through their
computers. This was only feasible if you had a voice-enabled computer, a
reliable and stable internet connection, and a software program installed
on your computer that made it all work.
The advantage of this computer-to-computer communication was that you
could completely bypass the traditional telephone system and talk to
anyone in the world free of charge -- as long as they had a similar setup
to yours. But the disadvantages of communicating this way were also
obvious. You could only communicate this way using your computer. You were
completely dependent on often unstable dial-up internet connections. And
the person at the other end of the conversation had to also be "online"
with a voice-enabled computer.
**Today's VoIP has solved these problems**
Today's versions of VoIP have left these problems in the past. Two things
were required to make VoIP technology feasible on a large scale basis, and
both of these things have now been realized.
First, broadband internet service has been widely adopted. This makes it
possible to have stable internet connections that are "always on". Second,
the industry has developed a simple, inexpensive method of integrating the
IP network (the internet) with the traditional telephone system. This
allows a user of VoIP to use his or her own telephone to call anyone else
in the world who has a traditional telephone connection.
This is where we are today. As traditional telecom companies like AT&T,
Bell, Qwest, and SBC develop their own implementations of VoIP technology
the way has been opened up for a myriad of choices for consumers. Today's
VoIP allows anyone with a broadband internet connection to place calls to
anyone with an ordinary telephone connection, anywhere in the world.
**Why you save money with VoIP**
The major advantages of VoIP are lower cost, and greater flexibility with
no significant decrease in voice quality. First, a VoIP subscriber does
not need a traditional phone line. Instead, you are assigned a phone
number by your VoIP provider. Prices for these numbers can be as low as $9
usd per month.
Second, most VoIP subscribers will purchase a "bundle" of services that
includes unlimited incoming calls and unlimited long distance calls to
anyone within a defined geographic area. For instance, VoIP unlimited
calling plans to anyone in the USA or Canada start at around $20 per
month.
Third, most VoIP service providers offer free bundled features that most
traditional telephone companies charge for. These include free voicemail,
call forwarding, caller ID, call waiting, call waiting ID, 3 way calling,
speed dialing, and many more of the services that the traditional
companies are constantly trying to sell you.
**Greater flexibility and portability**
Another significant advantage is the flexibility and portability of VoIP
phone service. With VoIP your personal telephone number is programmed into
the converter that acts as a bridge between your internet connection and
your regular telephone.
This has several important advantages. As already mentioned you do not
need an actual land line. Instead your telephone number is assigned to
your converter (not to your geographic land line). So you can take your
converter with you anywhere in the world, plug it into any available
broadband connection, and immediately start using your regular number to
make and receive calls.
This flexibility also lets you choose a number in an area code where most
of your long distance calls originate. For instance, if many of your
friends, family, business associates or customers are calling from a
specific city that traditionally involved a long distance call for them,
you could choose a number in that area code and immediately turn all their
calls to you into local (free) calls for them.
The advantages of VoIP are many, and the savings can be very significant.
So it is no wonder that VoIP has become the hottest telecom technology of
the decade. Informed consumers and businesses around the world are
adopting this technology at a phenomenal rate.
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