How VoIP Works -- Busting Out of Long Distance Rates
By Lucy P. Roberts

VoIP is the newest advancement in audio communications technology, and has a
variety of different applications that make it useful. VoIP stands for Voice over Internet
Protocol, and how VoIP works is actually quite revolutionary because it streamlines the
process of sending analog audio signals by converting them to a much easier to send
digital form for transmission.  

To understand how VoIP works, you’ll need to understand the basic concept behind
regular analog audio communication as well, since this is the precursor for VoIP. Analog
phone calls are actually made via fiber optic networks by digitizing your voice
communications for sending the signal across thousands of miles, but once it gets to
the final destination (a home or office phone, for instance), the signal is once again
converted to analog.  

During these calls, the switches remain open even while there is dead air and no
conversation is taking place; the circuit is also open in both directions even when only
one party is talking and the other is listening. This isn’t terribly efficient, and slows
down the communication of information considerably.  

Packet switching streamlines VoIP

VoIP works on a different premise -- rather than circuit switching, data packet switching
sends and receives information only when you need it instead of in a constant stream. It
also sends the information packets along whatever open channels are available rather
than a dedicated line, which is much more efficient. The information is simply
reassembled at the source.  

The payload of each packet has a destination coded into it determining the ultimate
destination. When the computer at the other end receives all of these packets, it will
reassemble the information into useable form. This form of sending audio data is
extremely efficient because it always takes the cheapest route that is also the least
congested.  

The compression of information and use of multiple routes in order to send that
information over the most efficient route makes sending audio over packet switching
quicker, much less expensive and more efficient. The number of calls that can be sent
is orders of magnitude higher than it was with the more traditional analog circuit
switching systems.  

For companies, the savings in long distance charges can be in the hundreds or even
thousands of dollars per year. If companies also make extensive conference calls, VoIP
makes even more sense when combined with conferencing options such as document
sharing in systems offered by companies like Voxwire and iVocalize.

Different types of VoIP calling are available

The most commonly used VoIP system is from one computer to another. To set  up this
type of service, you will need to have a sound card installed in both  computers along
with microphones and Internet connections. For practical  purposes, you’ll want a
broadband connection or DSL -- a dial-up modem will be  so slow the sound quality just
won’t be that good.

Aside from that, all you  need is a software package that can set you up with everything
you need to use, VoIP to make phone calls to whomever is also set up with the same
system.  

You can also invest in
IP phones if you want something that looks just  like your
standard analog telephones but with VoIP connectability. These  simply replace the old-
style RJ-11 connectors with Ethernet connectors  (RJ-45). Hardware such as routers
and the needed software are built right in.   

Analog telephone adaptors (ATA) enable you to connect a standard telephone  to
your computer Internet connection in order to take advantage of VoIP  options. ATA
converts analog signals to digital so that it can be transmitted  properly via the Internet.  


The newest option on the market is the
Wi-Fi phone, which uses  short-distance
Internet transmission of VoIP to replace cell phones calls.  Wi-Fi broadcasts over the
radio spectrum to cover short range areas for users  in certain areas, and these “hot
spots” have popped up across the U.S.  

The upshot of VoIP is that standard long-distance charges may soon become a thing of
the past. As more and more consumers turn on to VoIP and broadband connections
make it easy and inexpensive (as well as practical) to make phone calls over the
Internet, fewer individuals will be willing to pay high rates to make a telephone call they
can make for free or next to nothing via their computer.  

VoIP saves you money on long distance

There’s no by-the-minute charges with VoIP, no set-up fees, and no “time of day” or
overages. That’s the great thing about VoIP plans. You just pay a monthly fee and get
to make all the calls you want over your computer for one monthly fee. It’s so simple
and elegant, and it’s the solution that everyone’s been wanting and waiting for far too
long.  

You don’t have to wait for a certain time of day of day of the week to make telephone
calls with VoIP. There’s also the advantage of being able to use your VoIP connection
from anywhere -- remember, you’re not tied to a phone jack to use your number, but an
Internet connection, so you can call from anywhere with many calling plans.  

Some of the companies that offer excellent VoIP plans with unlimited calling are listed
below with their most popular options:  

Vonage currently offers a $24.95 per month unlimited VoIP package  to anywhere in the
U.S. or Canada. It includes voicemail, call forwarding,  three way calling, call waiting
and caller ID.  Packet 8 can provide unlimited VoIP for $19.95 a month in the U.S.  and
Canada with a variety of features like call waiting and three-way calling,  and can also
give you video phone service for about $29.95 per month.  

AT&T’s CallVantage provides the usual U.S. and Canada broadband  calling with
voicemail, call waiting, etc., along with email, a call log and a  ‘do not disturb’ option, all
for $29.99 a month. You also get to keep your  phone number for life, no matter where
you go -- a great feature for some who  move around a lot.  

VoIP in web conferencing packages

VoIP is used in almost all web conferencing services as an alternative to standard
conference calls, and looking into these packages will give you an idea of some ways to
combine VoIP with extras such as white boards, document sharing and video. For less
expensive options, many companies can provide strictly audio VoIP conference calls
combined with text messaging and document sharing without video.  

Some companies that offer VoIP in web conferencing packages separate from video
conferencing are:  

Voxwire offers voice communication with features like auto-queue,  mute options,
individual speaker adjustments and moderator controls along with  a “follow me”
browser system so that all participants can view a shared  desktop. Two persons can
use VoIP for $9.95 a month, or up to ten in a  conference environment for $29.95 per
month.  

VoiceCafé provides similar services with a wide range of options  that vary from
packages with VoIP capability for five people at a time on a  conference call to up to
500 in one conference call, all for a flat monthly  fee. The prices vary depending upon
what package you choose, and there are  several.  

iVocalize offers VoIP along with Internet conferencing options like  PowerPoint
presentation capabilities and presentation recording for future  playback. They also
provide optional Unicode translation in thirteen  languages. The most basic VoIP
package begins at $10.00 a month with a prices  going up incrementally depending
upon your needs and how many will be involved  in your conference calls.  

It is obvious that conference calling as well as standard long distance calling will be
changing greatly in the near future as VoIP changes the landscape of telephone
service. “Land lines” for long distance calling will eventually become obsolete as
broadband becomes more common and makes VoIP just as commonplace as any other
type of telephone call.  

And with the greater portability of soft phone options built into laptops and the use of
ATA phone adapters, the use of VoIP in the average home will arrive sooner rather
than later.

About the Author
Lucy P. Roberts is a successful freelance writer providing practical information and
advice for consumers and businesses about everything related to audio conferencing
services and
VoIP providers. Her numerous articles include tips for saving both time
and money; product reviews and reports; and other valuable insights for persons
searching the Internet for information about the
history of the telephone and related
topics.
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