Business VoIP

VoIP is basically just internet telephone service. Businesses can benefit from considerable cost saving by switching to VoIP just like individuals can. It is especially beneficial to the small and home based business. Centrex (standard business telephone services) services are available for a fraction of the cost of the traditional services.

Even large corporation can benefit from the hybrid and pure IP PBX systems. The decision should be based on several factors and is discussed in VoIP Service.

Internet phone service

In the most flexible from of internet phone service, a simple adapter is used to plug a convention telephone into. The adapter connects directly to your internet service. How it connects depends on your internet connection. In most home and small offices, the phone will plug into a USB port on the individuals computer.

In the case of Centrex or a PBX, the phone will plug into the existing connections. The equipment providing those new services will replace the existing equipment.

PC-to-PC Internet phone

Some of the free internet services such as Skype and FreeWorld Dialup allow their users to make free calls to other users. These calls really don’t involve the telephone system at all and are more like the calling ability on the various messenger services such as msn, yahoo and AOL.

However, unlike the messengers, Skype's Skypeout let you call mobile and landline phone for a per minute rate.

Softphones

Most of the VoIP service providers provide a softphone as well as an adapter. The softphone is an application that you install on your PC that allows you to make regular phone calls using a headset with a microphone. This feature is extremely convenient for businesses since it keeps the workers hands free while they are talking to client on the phone. To place calls, you just click on the number on the dialing pad on the online phone. The Vonage softphone is shown below.

Requirements for VoIP

Technical

You must have a broadband connection to the internet such as DSL, cable or T1.
You also need a open Ethernet port on you hub or router to plug the internet phone gateway into. Keep in mind that your internet phone is dependent on your internet service and will not be available if the power fails or the service goes down. There are some new products on the market such as Actiontec's Phone Wizard that allow you to switch between conventional and internet phone service.

Next is that fact that your number must be registered with the 911 service provider for it to provide an address for your home to the emergency operators. I’m sure the manufacturers will eventually put the GPS chips used in cell phones in all new phones to overcome this problem.

If you are a DSL subscriber, you may have to change your phone number since DSL numbers are attached to the jack. However, a new service called “Naked DSL” is being offered by some providers that will allow the transfer of your existing number in most cases.

Political

The FCC currently does not tax internet phone services. They did this because they believe that allowing innovation is the best way to advance communications technology. The traditional carriers are not happy with this arrangement. (Can you blame them, they used to get 100% of the business so there is no way to go but down in market share?).

The FCC will eventually tax internet phone service as soon as enough people have switched so that the startup companies no longer need extra incentives because these taxes support the 911 emergency networks. However, even when the taxes kick in, I still think it will be cheaper than the conventional land line is today. Because the providers will do what the existing telecommunications carriers and just pass the taxes directly on to the consumer without changing their basic rates.