VoIP converts
voice telephone calls to packets of data that can be transmitted across
the internet or other data networks. The simplest type of VoIP services,
such as instant messaging, allows two people to talk to each free of
charge using their computers and the internet. Nothing else is
need except a microphone and speakers.
PC to Phone services also allow free calls between different PC's as
well as being able to make paid calls to traditional phones and
mobile/cell phones. These services have been around for about 10 years
and require special phone software to be downloaded to the computer.
although there are many providers of these services, many users their
own bespoke software preventing easy use between PC's not having the
same software and limiting the availability of hardware devices
compatible with these services.
The earliest PC to Phone operations used a protocol called H323 but in
the last 5 years a technology called SIP has become the predominant
protocol for most operators. Using SIP provides many benefits to users
since most of the hardware and software is open source making it
relatively easy to switch providers at a consumer level. Certain well
know PC to Phone companies use Peer to Peer software, using the users
PC's and bandwidth as part of the processing network.
When making calls from a PC or VoIP device to a traditional phone or
mobile/cell phone, only part of the call is via VoIP and therefore cost
free. The first part of the call from the calling device to the
VoIP Providers own equipment is carried over the internet. Once at the
VoIP Providers own equipment the calls are converted back to traditional
telephone calls and then transmitted to the end telephone just like any
other call.
So if the call is
terminated just like any other call why is VoIP cheaper? There are
three basic reasons why VoIP calls to traditional phones are cheaper:
-
Using VoIP
enables the VoIP Provider to effectively move the calls from high
cost areas to countries where the cost of making calls is much
cheaper. For instance, international calls generally from the Middle
East are expensive compared to calls from Europe and North America,
so using VoIP to transfer the call to these lower cost countries
enable the VoIP Provider to offer calls at a lower cost
-
Some VoIP
Providers, particularly consumer focused ones, use lower quality
carriers to terminate calls. these requires many more call attempts
before successfully connecting a call; poorer voice quality and
calls often being unexpectedly terminated. Similar savings can be
achieved with prepaid calling cards who use the same means to
achieve cost savings.
-
VoIP uses the
internet or other data networks and does not require the same level
of capital investment or infrastructure as traditional telephone
systems. This reduces the overheads and costs of the VoIP Providers,
allowing them to provide service at a lower costs than the
traditional telephone providers.