What Is VoIP and What Are Its Advantages?

VoIP stands for "Voice over Internet Protocol." You can use this technology to send voice data generated by telephone calls over a broadband Internet connection instead of over a standard phone network. Thanks to the adoption of new standards, VoIP is now a realistic solution for businesses looking for an alternative to traditional telephone networks because it's available using standard telephone equipment.

VoIP has many advantages, including:

• Lower cost. VoIP providers can offer more competitive pricing for a couple of reasons. VoIP is not regulated by the FCC and is not subject to the same taxes as standard phone companies. And VoIP providers don't have to pay costly interconnection charges to another company's network.

• Data and voice integration. VoIP phones come with useful features such as e-mail-based voice mail, where your messages are sent to you as audio files in your e-mail. You no longer have to call the office to retrieve your voice mail messages.

• Mobility. You can take your VoIP phone number with you anywhere in the world. Imagine visiting Japan and having your phone ring in the hotel room whenever someone dials your New York phone number. This is especially handy for geographically dispersed teams, who can now avoid international phone rates by using VoIP phones with phone numbers in the same area code.

There has been a recent explosion in the VoIP market and the competition is driving prices down and increasing options and features. There are two basic options in VoIP technology: There are software driven systems like Skype, which have the advantage of being free with reduced features and expandable to include IP-to-landline calls, voice mail, and international calling. There are also a range of hardware-based options like Vonage, which require purchasing a box and subscribing to the service, but which have better dependability, bundled feature sets, and improved signal quality.