What is VoIP? How does it works?

VoIP is a term used in IP telephony for a set of facilities, for managing the delivery of voice information using the Internet protocol (IP). In general, this means sending voice information in digital form, in discrete packets rather than in the traditional circuit-committed protocols of the public switched telephone network (PSTN).

Organizations are already using messengers, so why invest in VoIP?
Instant messengers like Yahoo! or MSN do have integrated voice capabilities that allow PC-to-PC voice conferencing over IP networks. But enterprise telephony is different; it needs to cater to the business users and usage patterns. It needs to be ubiquitous and reliable as a regular telephone, while simultaneously reducing the total cost of ownership. VoIP is ideal in this scenario.

Many businesses already have sophisticated computer data networks and network management. VoIP provides highly cost-effective voice communications by layering voice applications onto the existing data networks. By taking advantage of these assets and fixed rates on Internet, access companies can achieve significant savings. The major benefits are:

l Substantial savings on long-distance and international calls

l Remote office workers and mobile employees can take advantage of all corporate telephone capabilities, including the ability to make and receive phone calls at their assigned extension

Does it mean that my existing network becomes redundant?
Today, most enterprises already have a data network in place, and it’s quite possible that the network is riding on the IP backbone. VoIP technology sits neatly on top of this. So there’s no extra cost in building the infrastructure.

How will my organization benefit from VoIP?
For multi-location enterprises, which are spread across the country, VoIP can bring about huge cost savings in voice communications when compared to traditional PSTN setups. Studies have shown that 70 percent of long-distance telephony bills are incurred intra-enterprise. These bills can be reduced drastically once we start using low-cost VoIP solutions for intra-enterprise communications. Users can bypass long distance carriers and their per-minute flat rates and run their voice traffic over the Internet.

VoIP is futuristic, it can help integrate many applications into a system like unified messaging, caller preference, Web services, etc. It provides operational agility, as you can add new services and users to the network with fewer burdens on the existing system. This can pave the path for more revenue earning possibilities.

Lastly, since IP telephony is based on a single network, the maintenance costs fall automatically. Efficient use of bandwidth adds to the efficiency, bringing the operation costs down automatically. The simplified network infrastructure of an Internet telephony solution cuts costs by connecting IP phones over LAN wiring system and eliminates the need for dual cabling.

Does this mean a huge investment to start with? What’s the ROI?
There is a considerable ROI upon setting up a VoIP-based service. The capital expenditure that is required for providing ‘n’ new services over traditional networks is higher than that required to provide equivalent services over an IP framework. In fact, new IP-based frameworks make it easier to create new services and then execute the same with minimal investment and re-compiling.

The return on VoIP infrastructure environment derives from reduced number of networks, easy network management, freedom from proprietary legacy switches, lower long distance costs and improved IP-based services for customers and employees. Most of the above is quantifiable for an enterprise by its CIO and he in turn can calculate his payback discreetly.

What about QoS?
This is one of the most critical factors while going for a VoIP network. Most organizations question the QoS for the simple reason that data networks were not designed for voice and latency is critical for voice packets. But with adequate bandwidth availability in the internal networks, the quality of calls can match that of PSTN calls. The three factors that can impact QoS are delay, jitters and packet loss.

Many organizations are implementing a number of tools and techniques to ensure QoS.

·Controlling network environment in which capacity can be pre-planned and adequate performance can be assumed

·Management tools can be used to configure network nodes, monitor performance, and manage flow and capacity on a dynamic basis. Traffic can be prioritized by location, protocol or application types

·Adding control protocols and mechanisms like real-time protocol (RTP), etc, should be used. The equipment vendors should comply to certain standards for QoS

If a company opts for VoIP over its existing network, will it not strain the network?
It will rather optimize the network. Most networks are under-utilized and could easily do with bandwidth-hungry applications like voice and video. Efficient use of bandwidth adds to the efficiency, bringing the operation costs down automatically.

IP telephony was deregulated in April this year? Are there still any regulations pertaining to the adoption and usage of IP telephony?
The Indian government deregulated Internet telephony for international calling on 1 April, 2002. Most of the ISPs in India have grabbed this opportunity with both hands, and offered cheap pre/post paid ISD calling service for their subscribers.

Today, the Indian consumer has multiple options for cheap international calling. Six months back, they had only VSNL as an option. Competition has brought down the prohibitive ISD cost, although QoS is not at par with circuit-switched calls. This is so because the public Internet actually transports the calls, which is not manageable.

The government never regulated VoIP in a closed user group (CUG). However, the government still does not allows the convergence of the CUG network with the PSTN network, which definitely is a hurdle in the growth of VoIP in the Indian market.

What will be the future of a VoIP network?
VoIP technology is definitely here to stay. VoIP’s core benefit is its ability to make next-generation converged network a reality. In a converged network environment, telephony and data signals are transmitted as packets over the data network.

According to the latest survey by Frost and Sullivan, IP-PBX is projected to take over traditional PBX in terms of revenue by 2008. With new applications coming on converged networks, their implementation in the enterprises is no longer the question of ‘if’, but ‘when’. A new class of flexible, instantaneous, multimedia applications enabled by session initiation protocol could well be the impetus for more companies to deploy converged networks. However, even with the rise of IP PBX, the legacy TDM market will continue to co-exist with the new IP equipment. Companies will take a gradual approach to migrate to a converged network.

Manish Sablok, national marketing manager enterprise class IP solutions, Tata Telecom