VoIP Long Distance Services

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• Long Distance by the Month...  Not by the Minute...

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What is VoIP?

The public telephone network and the equipment that makes it possible are taken for granted in most parts of the world. Availability of a telephone and access to a low-cost, high-quality worldwide network is considered to be essential in modern society (telephones are even expected to work when the power is off). Anything that would jeopardize this is usually treated with suspicion. There is, however, a paradigm shift beginning to occur since more and more communications is in digital form and transported via packet networks such as IP, VTOA (voice telephony over ATM), and Frame Relay. Since data traffic is growing much faster than telephone traffic, there has been considerable interest in transporting voice over data networks (as opposed to the more traditional data over voice networks as in the way modems and faxes work).

Support for voice communications using the Internet Protocol (IP) method of transmitting data over networks, which is usually just called "Voice over IP" or VoIP, has become especially attractive given the low-cost, flat-rate pricing of the public Internet. In fact, toll quality telephony over IP has now become one of the key steps leading to the convergence of the voice, video, and data communications industries. The feasibility of carrying voice and call signaling messages over the Internet has already been demonstrated but delivering high-quality commercial products, establishing public services, and convincing users to buy into the vision is now beginning to emerge as an acceptable vehicle for voice communication delivery over long distances.

VoIP can be defined as the ability to make telephone calls (i.e., to do everything we can do today with the PSTN [Public Switched Telephone Network]) over IP-based data networks with a suitable quality of service and a much superior cost/benefit ratio. Equipment producers see VoIP as a new opportunity to innovate and compete. The challenge for them is turning this vision into reality by quickly developing new VoIP-enabled equipment. For Internet Service Providers, the possibility of introducing usage-based pricing and increasing their traffic volumes is very attractive. Users are seeking new types of integrated voice/data applications as well as cost benefits.

Application and benefits of VoIP

Voice communications will certainly remain a basic form of interaction for all of us. The PSTN simply cannot be replaced, or even dramatically changed, in the short term (this may not apply to private voice networks, however). The immediate goal for VoIP service providers is to reproduce existing telephone capabilities at a significantly lower "total cost of operation" and to offer a technically competitive alternative to the PSTN. It is the combination of VoIP with point-of-service applications that shows great promise for the longer term.

The first measure of success for VoIP is cost savings for long distance calls as long as there are no additional constraints imposed on the end user. For example, callers should not be required to use a microphone on a PC. However, callers must modify their method of directing call traffic. Rather than dialing 1+ the number they want to call, the caller must dial into the VoIP network (much like a dial up modem on a computer dials into a computer network) and then input the number of the person they're trying to reach. VoIP provides a competitive threat to the providers of traditional telephone services that, at the very least, will stimulate improvements in cost and function throughout the industry.

The VoIP Market

The market for VoIP products is established and has begun its rapid growth phase. Projected revenues for Internet telephony long distance systems is expected to increase to 70% of a $562 billion dollar market place by the year 2004. This market is growing by as much as 50% per year, and provides further acceptance and market growth of Internet (IP) related products.

Summary on VoIP

Data traffic has traditionally been forced to fit onto the voice network (using modems, for example). The Internet has created an opportunity to reverse this integration strategy — voice can now be carried over IP networks, with the integration of video and other multimedia applications close behind. The Internet and its underlying TCP/IP protocol suite have become the driving force for new technologies, with the unique challenges of real-time voice being conquered as the latest in a series of developments.

Telephony over the Internet cannot make compromises in voice quality, reliability, scalability, and manageability. It must also interwork seamlessly with telephone systems all over the world. Just about all of today's network devices will need to be voice-enabled (and eventually multimedia-enabled). Future extensions will include innovative new solutions including conference bridging, voice/data synchronization, combined real-time and message-based services, text-to-speech conversion and voice response systems. These are all services that AmeriTalks™ looks forward to bringing to it's customers!
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