VoIP phone systems introduction

VoIP (Voice over Internet Protocol) represents the latest in phone system technology. With it, regular voice calls are sent over a computer network instead of traditional phone lines.

VoIP has been touted as “coming soon” since the first PC-to-PC telephony applications were introduced in 1995 – and it looks like it may have finally arrived. In recent years the audio quality has improved drastically, the technology has gotten cheaper, and business adoption has started to spike.

According to industry analysts Frost & Sullivan, worldwide revenues for IP PBXs (the heart of a VoIP phone system) are expected to grow from $1.96 billion in 2003 to $11.4 billion in 2008. Other industry players predict that by then, more than half of all phone traffic worldwide will be IP-based.

There are two basic varieties of VoIP. In its most straightforward form, VoIP requires a regular phone, an adapter, broadband Internet service, and a subscription to a VoIP service. When you place a call, it is sent over the Internet as data until it nears the recipient’s destination. Then the call is translated back into a more traditional format and completes the trip over standard phone lines. Also known as Internet telephony, this allows for extremely cheap long-distance and international calls.

This Buyer’s Guide, however, addresses VoIP phone systems – equipment installed at your business that routes internal calls over your computer network. With VoIP, you can unite multiple offices on a single phone system. No matter how remote the locations, a VoIP phone system can completely eliminate long-distance calling charges between them. However, it does not replace your existing phone service to the outside world.

VoIP phone systems can work for the smallest offices and the largest enterprises. In fact, IP PBXs will likely replace traditional PBX phone systems as prices fall and reliability improves, which helps explain why so many IP PBX manufacturers are familiar telecom heavyweights. Instantly compare different VoIP systems and features from multiple dealers today.