As communications technology continues to develop, businesses around the country are benefiting from more and more service options. Voice over Internet Protocol (VoIP), also known as Internet Telephony, is not exactly a new technology; however, it is increasingly coming into the spotlight in Canada. For those whom have never heard of VoIP, it is essentially a telephone call through the Internet. Rather than relying on copper wire or fibre optic connections to bridge the distance between callers, VoIP converts the telephone signal into a digital signal and sends the information through the Internet. The following sites provide a good overview of the basics of VoIP:
- VoIP / Internet Voice [PDF Format, 165Kb] from the FCC Consumer Facts Web site.
- Voice over IP
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There are many different types of VoIP providers. Some VoIP Web sites allow users to connect free of charge to other users by simply downloading and installing their free software. Other providers charge a flat monthly rate; charge per connection; or on a pay as you go basis. The options are as diverse as the organizations. The following sites offer a variety of information on a number of Canadian VoIP service providers.
There are many advantages associated with VoIP. For instance, a high-speed Internet connection can carry more voice conversations than a regular phone line. Additionally, VoIP does not differentiate between calls made locally and calls placed to international locations. For businesses operating globally, the potential for savings is great. However, VoIP is still a developing technology. Although service quality is continuously improving, not all VoIP providers offer the same services or sound quality. It is important to thoroughly weigh all aspects of VoIP and research your new provider before making a final decision.
Global voice over IP service revenue is estimated to hit $40 billion next year, up from just $74 million in 20001. So whether you see a place for VoIP in your current business or not, expect to hear a lot more about it in the near future as it will inevitably become a leading service option for Canadian businesses.
Additional Resources:
- Online IP Telephony Dictionary
- CRTC decides on limited regulation for VoIP telephone services to foster competition
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1 Delaney, John and Hall, Peter. "Next Generation Services: Impact on the Industry and Markets." June 2000.
