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When you're Wired to the Web,
Talk is Cheap

By Marc Cohen

The acronym VoIP has been growing in my awareness for the last several months. I, like most individuals and companies look forward to the free or low cost world wide phone service, that voice over the Internet promises.

Before going further in this review let’s make one thing clear. I call myself the perpetual computer novice, meaning that I use a computer without understanding the technology that underlies the file structure, word processing, spreadsheets, drawing and the photo manipulation that the computer permits. I call for help when things go wrong. This is a group I think most computer users fall into—so please forgive me if I sidestep the technical stuff.

Bob Hughes, program manager of IBM’s voice network strategy, explained that this is the formative time to establish the services we want, showing how they are structured and priced. IBM feels that if they don’t take this initiative now VoIP will become whatever the suppliers decide — offering less at a higher cost and limiting the flexibility and interoperability we might otherwise enjoy. The world is moving toward Internet technologies, and IBM is working to ensure that these systems work together and perform well. All the technical background, though interesting to the application developer, should be invisible to the end user. Think of the transition from operator assisted calls in the early 1900’s, to the transition to dialing a series of three letters and four numbers, then to access numbers, country codes, area codes and 7 digit numbers to connect to any world wide phone. There is a universe of circuit switching technology of which we are most blissfully unaware, hidden behind the system we use every time we pick up a phone.

VoIP is a method for taking analog audio signals, like the kind you hear when you talk on the phone and turn them into digital data that can be transmitted over the Internet. By using some of the VoIP software to make phone calls you are bypassing the phone companies entirely. The state of VoIP is where the Internet was 10 years ago. In a few years it may replace traditional phone systems entirely.

Departing from Bob’s presentation, a short Internet searching introduced me to the following:
Now that we’ve looked at Internet calling in a general sense, let’s look more closely at the components that make VoIP an improvement over the traditional phone system.

The Standard Phone System: Circuit Switching

Existing phone systems are driven by circuit switching, a very reliable, but somewhat inefficient, method for connecting calls. Circuit switching is a very basic concept that has been used by telephone networks for more than 100 years. When a call is made between two parties, the connection is maintained for the duration of the call. Because you are connecting two points in both directions, the connection is called a circuit. This is the foundation of the Public Switched Telephone Network (PSTN).

VoIP calling:

There are three ways to place a call using VoIP:

• ATA - The simplest and most common way is through the use of a device called an ATA (analog telephone adaptor). The ATA allows you to connect a standard phone to your computer or your Internet connection for use with VoIP. The ATA is an analog-to-digital converter. It takes the analog signal from your traditional phone and converts it into digital data for transmission over the Internet. Providers like Vonage and AT&T CallVantage are bundling ATAs free with their service. You simply crack the ATA out of the box, plug the cable from your phone that would normally go from the wall socket into the ATA, and you’re ready to make VoIP calls. Some ATAs may ship with additional software that is loaded onto the host computer to configure it; but in any case, it is a very straightforward setup.
• IP Phones—These specialized phones look just like normal phones with a handset, cradle and buttons. But instead of having the standard RJ-11 phone connectors, IP phones have an RJ-45 Ethernet connector. IP phones connect directly to your router and have all the hardware and software necessary right onboard to handle the IP call. Soon, Wi-Fi IP phones will be available, allowing subscribing callers to make VoIP calls from any Wi-Fi hot spot.
• Computer-to-computer—This is certainly the easiest way to use VoIP. You don’t even have to pay for long-distance calls. There are several companies offering free or very low-cost software that you can use for this type of VoIP. All you need is the software, a microphone, speakers, a sound card and an Internet connection, preferably a fast one like you would get through a cable or DSL modem. Except for your normal monthly ISP fee, there is usually no charge for computer-to-computer calls, no matter the distance.

Try it Yourself
If you’re interested in trying VoIP, then you can check out some of the free VoIP software available on the Net. You should be able to download and set it up in about three to five minutes. Get a friend to download the software, too, and you can start tinkering with VoIP to get a feel for how it works. Chances are good you are already making VoIP calls any time you place a long-distance call. Phone companies use VoIP to streamline their networks. By routing thousands of phone calls through a circuit switch and into an IP gateway, they can reduce the bandwidth they’re using for the long haul. Once the call is received by a gateway on the other side of the connection, it is decompressed, reassembled and routed to a local circuit switch.

Although it will take some time, be sure that eventually all of the current circuit-switched networks will be replaced with Internet packet-switching technology. IP
telephony just makes sense, in terms of both economics and infrastructure requirements. Even now, data comprises the largest
portion of the information transmitted; voice transmission is just a small portion of the existing bandwidth. More and more businesses are installing VoIP systems, and the technology will continue to grow in popularity as it makes its way into our homes.

The Forrester Research Group predicts that nearly 5 million U.S. households will have VoIP phone service by the end of 2006. Perhaps the biggest draws to VoIP for the home users that are making the switch are price and flexibility.
VoIPgives you the flexibility to make a call from any broadband connection. Since the IP phones or ATAs broadcast their info over the Internet, they can be administered by the provider anywhere there is a connection. So business travelers can take their phones or ATAs with them on trips and always have access to their home phone.
Another alternative is the softphone. A softphone is client software that loads the VoIP service onto your desktop or laptop. The Vonage softphone has an interface on your screen that looks like a traditional telephone. As long as you have a headset/microphone, you can place calls from your laptop anywhere in the broadband-connected world.


Price
Most VoIP companies are offering minute-rate plans structured like cell phone bills for as little as $30 per month. On the higher end, some offer unlimited plans for $79. With the elimination of unregulated charges and the suite of free features that are included with these plans, it can be quite a savings. Most VoIP companies provide the features that normal phone companies charge extra for when they are added to your service plan. VoIP includes:
• Caller ID • Call waiting
• Call transfer • Repeat dial
• Return call • 3-way calling

There are also advanced call-filtering options available from some carriers. These features use caller ID information to allow you to make a choice about how calls from a particular number are handled. You can:

• Forward the call to a particular number
• Send the call directly to voicemail
• Give caller a busy signal
• Play a “not-in-service” message
• Send caller to a funny rejection hotline

Some VoIP services offer the ability to pick as many as 5 numbers in different area codes, people in those areas can dial a local number to reach you. With many VoIP services, you can also check voicemail via the Web or attach messages to an e-mail that is sent to your computer or handheld. Not all VoIP services offer all of the features above. Prices and services vary, so if you’re interested, it’s best to do a little shopping. Enjoy the savings now—before the federal regulators and state taxing authorities wake up to what they’ve been missing.

Now for my disclaimer:

I haven’t tried any VoIP services yet I’ve still to graduate to broadband. I want to thank Bob Hughes from IBM and Jeff Tyson and Robert Valdes for their Internet article “How VoIP Works” (http://www.engedi.net/documents/HowVoIPWorks_Feb2005.pdf)

 


Marc Cohen is a perpetual DACS board member who never became a guru. He has two daughters who live very far away, and he would like to save on long distance.

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