Internet Protocol. Still a little confused? Don’t be surprised; Voice over IP is still a relatively new technology. And it’s just another prime example of how Internet technology is becoming more and more prominent in the workforce.

Simply put – VOIP is a way for a business with dedicated Internet access to have the ability to utilize that access to have virtually free Long Distance. Think about it,

when you are using the Internet and visiting sites “Around the World”, you are doing so without incurring any Long Distance charges. In fact, the only fees you pay are the cost of your Dedicated Line (ISDN, DSL, T-1) and your ISP (Internet Service Provider). With that idea in mind, why not use that same free access “Around the World” to transfer a voice sample from your phone system?

So, how does it work? It would be best to start with what Internet Protocol or IP actually is. To keep it simple, think of it as a phone number assigned to a specific piece of equipment (network server, PC, printer, IP phone). Just like a phone number, every IP number or address is different and will receive only the calls or “data packets” sent directly to it. All data sent over the Internet is sent in this “data packet” form and it doesn’t matter if it’s in video, signal, or audio format. All a network knows is that there are packets with you IP address destination. And that’s what the Internet is designed for, sending billions of these data packets “Around the World”.

Now comes the tricky part, converting those “data packets” into a high quality voice sample. This is done using a Digital Signal Processor or DSP. (That’s about as technical as I will get!) The DSP’s that an average business person will likely run into are found in the newer phone systems provided by industry leaders such as ESI, NEC, and Lucent to name a few. With these phone systems you would still use standard CO lines to process local calls, but you would use the Internet (IP) to transmit your selected long distance calls. Notice, I used the word “selected”.

Now comes the clincher! Just like your data transmissions can sometimes be fouled up, the same holds true with VOIP transmissions. The quality of the data/voice transfer is always best when there is direct connection between sites. One of the highest quality transfers occurs utilizing what is called a VPN – Virtual Private Network. Subsequently, the lowest quality transfer occurs utilizing a general Internet connection. In the latter, the quality is generally good for casual conversation; it’s just not well suited for day-to-day business.