What is VoIP?

Voice Over IP also called Internet telephony, Voice-over-IP (VoIP) uses the Internet Protocol (IP) to transmit voice communications over Local Area Networks (LANs), Wide Area Networks (WANs), and the Internet. VoIP provides an alternative to standard telephone communication. By integrating VoIP into your communications infrastructure, long-distance toll charges can be reduced or eliminated. VoIP sends digitized audio in packet form, allowing the elimination of toll charges between a company's branch offices by tunneling voice traffic over the internet or private data networks.

Currently VoIP calls terminating on the Public Switched Phone Network (PSTN) in the United States cost $0.03 per minute or less. These savings can quickly produce a return on investment.

In addition to reducing or eliminating long-distance toll charges, using VoIP can reduce or eliminate the need for parallel voice-only wiring. Calls can be sent over a company's data network, which eliminates the need to maintain two sets of wiring (one for voice, the other for data). VoIP also reduces the need for dedicated station (FXS) cards in PBX hardware, as it is not port based. When additional VoIP phones are added to a network, no additional station cards need to be purchased, reducing costs.

Dave Pasternack

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