VoIP systems use Internet Protocol to send voice ‘packets’ over an IP network. This means the VoIP can be used on ANY data network that uses IP.
Not only does VoIP work on the Internet, it can also work on intranets and local area networks. How does it work? Your voice signal is first digitized, compressed and converted into an IP packet.
This packet is then transmitted over the IP network. Signaling protocols are used to create and close calls, send and receive information, locate users and negotiate capabilities. This is straightforward, simple and it is a very low cost system model.
There are other reasons why a small or medium sized business might want to use VoIP systems, instead of the more traditional phone systems.
The increasing demand for integrated multimedia communication and the growing interest in voice and data network integration are two other reasons why a business owner may prefer VoIP systems.
Even though IP was originally designed to transport data, a few issues have cropped up in VoIP systems because of vendors not conforming to traditional standards of quality.
Interoperability for example can be seen as an issue. On public networks, products from different vendors need to operate with each other if VoIP is going to become popular among business users. Standards need to be devised and adhered to across the board.
The quality of a person’s voice is also in question—as IP carries data, but no guarantees that voice quality will remain intact over the network. There may be delays, distortion and echoes. Packet prioritization has been looked at, as a standard solution.
Integration with PST networks has also been proposed. While VoIP technology is being adopted, it needs to be able to work in conjunction with the older PSTN technology. In other words PSTN and IP networks need to look like the same thing to new users.
Security standards are a concern, as people may be able to capture packets meant for someone else. Security encryption and tunneling must be devised to protect the information that moves across the IP network.
Finally, scalability will become a main issue with regards to sorting out VoIP standards and protocols. Quality needs to be the same for IP calls, even though they are much cheaper. VoIP systems will gain popularity if these standards and protocols are implemented.