Due to multiple requests for this topic, and an unfortunate hacking incident in which our phone systems were compromised, I am going to devote the space for this and next month’s column to VOIP (Voice Over Internet Protocol) and VOIP phone systems. Many people commonly call this Voice Over IP.
We will discuss:
- How the technology works, at a basic level
- Pros and Cons of VOIP
- Types of VOIP offerings
- Options for your business
Traditional Phone Systems
For over a century, the basis for phone calls is something called PSTN (Public Switched Telephone Network), and for every phone call made, a series of switches and copper wires would create a dedicated circuit until you were done. When fiber came along, you could fit a lot more of those circuits, than you could with copper wire, and the transmission became more effective.
But not THAT effective. The circuit had more bandwidth that what the call really needed, so there was a certain inefficiency in the transmission. But you DID own that transmission when you called. It was a dedicated circuit.
Along comes Internet Protocol
Many of us may take for granted, that when we send or receive e-mail, or surf the web it goes from point A to point B pretty quickly. If you had to browse the web using a dedicated circuit like the old phone companies did, it would take A LOT longer and be more expensive. But when the concept came along of sending data packets from one system (router) to another system (router), you could send data along an infinite variety of paths to get to its destination.
Even now, as you view this article through your browser, parts of it may be transmitted down one or more paths, and other parts may be transmitted down other paths. But they all arrive and reassemble before appearing in your browser.
A router is a device that routes packets – it finds the best path available based upon destination, traffic conditions, or similar considerations. Phone companies use IP switching as a means of creating more efficient transmissions, but PSTN is still prevalent.
VOIP defined
So now you understand how a Voice over IP system works. You speak into a device (analog), which then converts it to a digital signal (digitize), and sends the voice data packets to the next router, which in turn finds the next best route, etc. until it finds its destination, where it reassembles (using something called a ‘codec’) the voice data so that you can hear it through an analog headset or hearing device.
That’s it.
VOIP Pros
First, there is the matter of Cost:
- You can use VOIP software like Skype or Google Talk which is free, and just requires that two of you have the software installed to talk.
- There are a variety of open source systems that you can install on an average server, and create your own VOIP system – and then buy phone minutes from a VOIP provider for pennies on the dollar (more on this next month).
- VOIP specific Companies like Vonage, or cable companies like Comcast provide VOIP services with unlimited calling packages for less than $20.00
- VOIP gateway companies who sell minutes (like www.voip.ms), bill you essentially buy the pieces of data that you send – not by the minute, like a traditional phone company.
Flexibility:
- If you have a computer, you can install a software phone (called softphone), that acts just like an extension. You could be in New York one day, and Canada the next, and you would receive the call at your extension – and nobody would know where you were.
- You can add other abilities like video conferencing, file transfer, etc. without needing expensive phone hardware.
- Moving? No more phone company costs.
Business Opportunities:
- Since VOIP can save you money, there are many companies entering the fray to provide you service at a cheap price. Have you seen the numerous ads for Magic Jack?
- Cell phones become VOIP enabled as companies like T-Mobile, AT& T produce new offerings. Use Skype on your iPhone!
- Companies like Cisco have offerings that combine voice and HUGE video-conferencing tvs.
VOIP Cons
- Loss of power. If the power goes out in your office, generally the traditional phone company still works.
- Reliability. The dedicated circuits for PSTN may have been inefficient – but they were, and are, reliable. With packet switching, that travels from router to router searching for the best route, CAN get hung up – or even lost. This would lead to what we call a Quality of Service issue (QoS). Within a company, QoS can be controlled for its own network, but outside of that network, packets may traverse a veritable sea of routers and switches to get to their destination.
- 911 calls. Since we don’t have a mapping of IP addresses to a particular geographical area, dialing 911 can be a routing problem.
- Software phones – like any other software – are susceptible to viruses, worms, hijacking, etc.
- Security. If you decide to install your own VOIP network, you have to lock it down. Even though there is no ‘data’ on that server, it can be used to re-route calls and use them for voice phishing or other dastardly purpose.
(Note from author: This was my own experience. I have used a particular VOIP system in our offices for over 4 years, and after returning over one weekend, I found that somebody had hacked into our VOIP server, and used it to make calls all over the United States as part of a grand voice phishing scam. After talking with several banks, and the FBI, I found that we were one of many VOIP servers used for this purpose; and many of those other companies were MUCH larger than us.
Our data center is separated from this network, and we never thought that someone would use this type of system for such a scam. I will give more details on this in the next month’s column. Hopefully some of you can learn from this)
Next month I will use diagrams to explain what types of systems you might want to explore for your company – large or small.
We will look at Skype and Google Talk, commercial systems like Vonage, do it yourself systems like Asterisk, and even some hybrid systems that combine both local use and cloud operation.
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