Frequently Asked Questions about VoIP technology

  How does VoIP work?

VoIP, or Voice over Internet Protocol, is simply your voice traveling over an IP network without any dedicated connection. In fact, individual VoIP packets will take different routes to their destination and be reassembled at the other end in real-time. Compare that to an old-style PSTN network where a dedicated connection is created and maintained for the duration of your call.

  Does VoIP work like a regular phone?

Equipment-based services work exactly like your regular phone. Most people won’t be able to tell the difference if you have a decent broadband connection. The PC-based services do work differently and often use names rather than phone numbers. Some PC-based services do require additional steps to call a regular telephone number.

  What is the advantage of using a VoIP service?

For someone who rarely uses the phone and never makes long-distance calls, a VoIP service is probably just an extravagance. But for everyone else, the cost savings alone are more than enough reason to switch. Add to that the fact that even the most basic VoIP services give you extra features - features that your regular phone service would charge extra for. Often that will include a record on your computer of all calls made and received. All the services we have investigated give you voicemail, some have video call options and almost all include basic conference call features. Some even provide file transfer and some sort of text chat capability. A few allow you to email voicemail messages.

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  What type of internet connection does a VoIP service require?

VoIP can run on any IP network, just like your browser. Cable and DSL work great for consumers, and even some dial-up connections give a usable call quality. Unfortunately those connections usually don’t provide enough upstream bandwidth to give a good voice quality for a high-demand business connection.

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  What equipment do I need?

That depends on what you want to get out of it. A simple setup uses a PC/software-based solution like the Free Skype Telephony Software. These work on any PC system connected to the internet, provided that you have speakers and a microphone (or a headset) and the software to handle the calls. They will work on any connection, but call quality is better over a high-bandwidth connection like DSL or cable. Calling other PC/software-based systems using a PC/software setup typically works well and is free. Calling a regular phone number often costs money or requires additional equipment.

The next step up is the typical consumer-level VoIP system. They are designed to replace a single residential phone line and do require a specialized router connected to your internet connection. The router works by splitting the internet traffic from the voice traffic and sending them to the PC or phones. You can use a regular telephone with these systems since ATA converters allow the signal to be converted between the IP Network and your existing phones automatically.

VoIP systems for small or medium business require a high-quality broadband connection and specialized equipment to handle multiple lines, automation, advanced conference calling options, call grouping and so on. Large businesses or organizations should be evaluated for hosted or purchased solutions involving heavy-use routers, switches and other equipment.

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  Do I need to keep my regular telephone line?

It depends on your area and your specific needs. A VoIP phone is dependent on the internet connection, so if that goes down or power goes out so does your VoIP phone. In some areas, emergency services (911, police, fire, etc.) cannot be supplied except via a regular telephone. If your internet service is DSL through the phone company, then you'll need to switch to cable or keep the phone line.

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  What about emergency calls?

In the USA emergency calling is required and VoIP providers provide at least basic access to the E911 service. Not yet as good as the regular 911 service but the system is growing as demand grows. Other countries, and even some areas in the US, don't yet have E911 service at all. Also, if the power is out you may not be able to make a VoIP call anyway.

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  How does VoIP affect my regular internet connection?

While you are on a VoIP call, some of your bandwidth is being used by the VoIP call, so the rest of your internet activities will have less bandwidth to work with and will slow down a little. When no VoIP calls are being made, your internet connection will be unaffected.

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Small Business VoIP FAQ's

Q: What benefits does VoIP offer to my business?

The most obvious and immediate benefit is that VoIP can reduce international call costs by as much as 40%, and charges for domestic long distance are reduced nearly as much.

Once a business uses the service for a while the other benefits start to make themselves felt.These benefits may be less obvious than a smaller bill, but they can be far important in the long term.

VoIP providers offer a long list of new features that can have a serious impact on business productivity. These features include click-to-call, web based voicemail, integrated conferencing, auto-attendant capabilities, call routing and others that the providers are adding as demand increases.

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Q: What does a small business require from a VoIP provider?

Some consumer-focused VoIP service providers do not offer all the basic features required by a business user. Small business owners should consider working with only a VoIP provider that is focused on working with businesses and who provide the ability to place a call on hold, transfer a call, forward to voicemail, and other features that home users don't require.

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Well, I'm sold, how do I make the switch?

First, decide if you are going to use a hosted service or if you are going to need your own equipment:
  A hosted solution will be easier to setup and manage, and probably less expensive -- at least in the short term.
  Buying your own equipment will provide additional functionality and flexibility as your business grows.

  See ALSO: Questions Small Business Owners Should Ask A VoIP Service Provider

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