What is VoIP?

What is VoIP? It's a technology that's rapidly displacing POTS (Plain Old Telephone System) or PSTN or (Public Switched Telephone Network). Unlike the old analogue telephone systems, VoIP technology is digital at its core.

While it's been around for a while, VoIP really began to take off circa 2004. That was when broadband internet became a viable option for millions of consumers around the world. People began to sign up for permanent Internet connections and the trend continues. Not only could they surf the web and send emails faster, but they could do it without the need to make a dial-up connection to an ISP.

When these new broadband users heard that they could make free international VoIP phone calls they wanted to know more and asked: what is VoIP? The simple answer, it's a technology for transmitting voice over IP networks, either private or public i.e. the Internet.

There are several ways of making a VoIP connection. They include:

1. Installing VoIP client software on a PC or Mac and communicating via microphone, speakers or a headset. This option is ideal for people who need to travel, as its use is not tied to physical location, just the availability of a broadband connection.


2. A regular telephone handset, where the broadband line servicing a building is plugged into an ATA (analogue telephone adapter) and a premise based telephone system. This options permits multiple regular handsets to make and receive VoIP calls.


3. Purpose built VoIP handsets that have software and connectivity permitting connection direct into an IP router.

It's also important to recognize that VoIP is more than just telephony as understood in the analogue era. VoIP is feature rich: conferencing, call forwarding, instant messaging, file exchange, as well as integration with digital applications such as video conferencing.

For most consumers their first introduction to the technology was via Skype VoIP. The PC to PC service now owned by eBay provides consumers with an opportunity to experience the technology first hand and make a judgment on VoIP pros and cons.

It's clear that in the very near future analogue telephony will be completely displaced by VoIP technology. Its rapid adoption brings with it concerns about VoIP security and the necessity for measures to counter hackers such as encryption and authentication. From the perspective of laptop security, VoIP presents the same challenges as any other communication application: virus threats, hacking and identity theft.

What is VoIP? To many entrepreneurs it's a technology that has come of age. VoIP technology has opened the door to greater competition and entirely new business models for delivering telephone services to business and consumers.