Saturday, October 30, 2004

 

VOIP has big guns worried

VoIP has the “Copper Telco’s” in a spin as take rates increase so does the fall in PSTN long distance telephony.

Firstly what is VOIP?
Short for Voice over Internet Protocol, a category of hardware and software that enables people to use the Internet as the transmission medium for telephone calls by sending voice data in packets using IP rather than by traditional circuit transmissions of the PSTN. One advantage of VoIP is that the telephone calls over the Internet do not incur a surcharge beyond what the user is paying for Internet access, much in the same way that the user doesn't pay for sending individual e-mails over the Internet.
There are many Internet telephony applications available. Some, like CoolTalk and NetMeeting, come bundled with popular Web browsers. Others are stand-alone products. VoIP also is referred to as Internet telephony, IP telephony, or Voice over the Internet (VOI)
It provides the abilities to transmit “better than telephone” to “studio quality” audio across the internet via broadband technologies. It is an almost free medium (classed as almost free because you have to factor in broadband costs, phone line rentals and Voip provider rental) as calls to and from voip users are free, its usually only when someone uses a voip dial up gateway to access PSTN lines it starts costing to place a call.

In Australia two major broadband providers and one locally based (Port Macquarie) provider are using VOIP as a value added service to make people want to take up broadband. Big businesses are using VOIP to link sites PABX systems together and save on communications costs.

Voip companies provide VOIP Gateways or points of presence, they are basically a Remote Infrastructure Multiplexer (RIM) integrated with a VOIP router. The RIM accepts calls and places them to and from the PSTN hardware on the standard “copper network”

Voip has the “copper telcos” scrambling to compete and it should bring the costs of telephone calls down in the long term. However, mobile phone costs are artificially high to protect the “copper teclcos’ because mobile telephony is actually cheaper provide than PSTN telecommunications because it does not require the massive amount of terrestrial wire and fiber like PSTN networks do.

To use VOIP all you need is an instant messaging tool like MSN, SKYPE, ICQ and others. Or you can sing up with a voip provider and use a SIP phone plugged directly into your broadband router.

What is SIP?
Short for Session Initiated Protocol, or Session Initiation Protocol, a signaling protocol for Internet conferencing, telephony, presence, events notification and instant messaging. The protocol initiates call setup, routing, authentication and other feature messages to endpoints within an IP domain.

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