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IT in the News Group 5 - VoIP
- 1. Harrison Smith José Chomón Ryan Teschner Michael Velasco Cassandra Rayne
- 2. VoIP: Voice over Internet Protocol All you need is an Internet connection Bypass traditional phone companies Potential for improved functionality
- 3. Traditional Telephone: Voice Signal = Acoustic Energy Analog Signal = Electrical Energy Voice Signal = Acoustic Energy
- 4. VoIP Calls: Voice Signal = Acoustic Energy Analog Signal = Electrical Energy Digital Data Voice Signal = Acoustic Energy
- 5. 1. VoIP using ATA 2. With an IP enabled Phone 3. VoIP Connecting Directly
- 7. Service providers vary By Technological Requirements By Rate Structure Ask: Business or Residential? How do I expect to use the service? What plan is best for my business?
- 8. Business or Technology Provider Rate Residential Requirements Varies by plan; including: Vonage $25.99/mo (residential) Residential & Small Business ATA $49.99/mo (small business) $18.00 for 3 months or Residential Direct connection; Skype $60 per year & Small Business Requires new phone number Net2Phone $24 per month for residential Residential & Business ATA Free calls domestically Direct connection; Google Voice $0.02 - $0.15 internationally Residential & Small Business Requires new phone number per minute VoiP.com $99.95 per year Residential & Small Business ATA / IP enabled phone Varies by plan; starting from $8.95 - $24.95 per month, per ATA / IP enabled phone Nextiva line with limited minutes; Business No contract $34.95 per month per line with Online faxing available unlimited calling
- 9. Technological Components: Telephone Developed in the 1870s by Alexander Graham Bell Early phones were leased to subscribers in pairs Connecting lines through switches – “Strowger Switch” Transition into Digital Age • AT&T – Touch Tone technology
- 10. Technological Components: Internet Developed by U.S. Department of Defense in 1968 Importance of Data communication TCP/IP Data Packets travel to final destination
- 11. Invented by Vocaltec in 1995 Peer to peer communication Original “Internet Phone” required specific software Skype and Vonage – examples of Computer-based VoIP and ESP VoIP (Expert Service Providers)
- 12. Retail Market US From 2004 to 2007, subscribers grew from 1.5MM to 13MM Revenues for 3rd quarter 2007: $1.3B Europe From 2004 to 2006, subscribers grew from 2MM to 16MM Revenues for 4th quarter 2006: $700MM Business Market
- 14. The Cost Savings Collaboration/Data Sharing Portability Carry Over Business’s Number Options
- 15. Video/Audio Quality Compatibility Availability/Reliability Emergency Calls
- 17. Direct dialing to locations around the globe Portability allows instant communication anywhere Connectivity allows for ad hoc conferences with employees anywhere
- 18. VoIP plans are very affordable Leverage existing data networks Connect phones anywhere with internet Turn laptops into portable phones
- 19. Voicemail to email to ensure messages are received timely Transfer calls seamlessly around globe Coordinate multiple devices to pick up calls Incorporate video conferencing
- 21. Instant global connections Cost of phone systems continues to decline Cost of bandwidth continues to decline Unlimited usage, flexibility, and features
- 22. Cell phone replacement Tablets and laptops turned into mobile phones Increasing availability of WiFi allows for phone service almost anywhere
- 23. Convergence of voice and data Instant messaging with option to connect Voice and video on demand Global collaboration instantly
- 24. 1. What about your firm? How does your business use VoIP technologies to achieve competitive advantage? If they do not, how could your firm implement this technology in the future? 2. Have you ever used VoIP personally? If so, do you have any experiences or thoughts you'd like to share? 3. What do you think are the biggest and most earth-shaking implications of this technology in your industry or in the economy overall?
Editor's Notes
- TITLE: IT in the News: VoIP as a Business Tool In this presentation, we’ll discuss VoiP and its applications in your business. Let’s dive right in.
- B. What is VoIP? An Overview (Cassandra Rayne) VoIP is an acronym that stands for “Voice Over Internet Protocol.” This new telecommunications technology allows you to make a phone call over a broadband internet connection, rather than through traditional, or “analog,” phone lines. Why is this so great? Well, instead of having to use a traditional cell or land-line carrier, calls can now be made with only an internet connection. This means that individuals and businesses can bypass telephone companies and their charges, which is beneficial because VoIP services are usually cheaper and can bring improved functionality. Because of the cost and technology implications, VoIP has huge potential impact on businesses everywhere, not to mention on the telecommunications industry as a whole. Image source: http://webtablab.com/wp-content/uploads/2011/08/best-voip-service.jpg
- C. About the Technology / How VoIP Works (Cassandra Rayne) When you speak into a traditional telephone, your voice, or “acoustic energy” is converted into electrical energy—or analog signals—by the equipment inside the telephone. This electrical energy is then transmitted through the telephone wire to the speaker on the other end of the line; the speaker then transfers the electrical energy back into acoustic energy that can understood by the other caller.
- `VoIP services, however, transfer your analog voice signals into digital data—the 1’s and 0’s of the computer world-- that can then be transmitted over the internet. This is usually accomplished by placing an adapter between your normal phone and the internet connection, or by using a “VoIP enabled” telephone. A person or business that wants to use VoIP must usually select a VoIP provider. VoIP may be used from a single location, such as to replace a home or business land line—or it may be portable and used when a person travels. This flexibility depends on the type of VoIP service chosen.
- There are three main methods of setting up VoIP: First, there is VoIP using ATAATA stands for “Analogue Terminal Adaptor,” and is a device that connects a typical analog phone to an internet connection. The adaptor converts the analog information into digital data for transmission. Some ATAs are locked with a specific VoIP provider. Secondly, you can use VoIP with an IP enabled Phone Internet Protocol, or IP, enabled phones have the equipment required to convert analog signals to digital data built right into the phone; no ATA is required. An Ethernet port is built right into the phone. No personal computer or other software is required. Many companies make VoIP –enabled phones. A slang term for IP enabled phones that you might come across is “hard phones.” A third option is called “VoIP Connecting Directly” And represents using just a computer, either with software loaded on the computer or via web-based software, to connect to a VoIP service—or, it can represent a tech-savvy user bypassing a VoIP service provider altogether. Either way, this is usually the cheapest option due to the lack of special hardware requirements, and for those who choose to bypass VoIP services completely, because it requires no fees outside of normal broadband connection charges to make telephone calls. However, using VoIP without a service provider requires technical expertise and can be problematic if not implemented correctly. VoIP’s applications are widespread. Anyone with a broadband connection can use VoIP instead of traditional phone lines, and VoIP can even be used at a business’s call centers. Third Image URL: https://encrypted-tbn3.google.com/images?q=tbn:ANd9GcSuTlCOs7YGvHW4bYx3izpWeE0TQv9c1tqres1jxkZTvQjJ9e99
- More information about the technical aspects of VoIP, for those who may be curious, can be found at this website. http://www.voip-info.org/wiki/view/What+is+VOIPImage URL: https://encrypted-tbn2.google.com/images?q=tbn:ANd9GcQI7n7eZeMo4YrEdQh6Uww7BR_4iH7zFa-TUWlkB0Dr2x89jRCk
- E. Delivery of VoIP: Service Providers You’ll need to select a VoIP service provider in order to make calls over the internet, unless you want to connect directly without using a VoIP provider, which is an option that comes with its own risks and complexities. VoIP providers vary in their methodology. Some use ATAs, and some only use IP enabled phones. These companies may lock you into using their hardware when you subscribe to their service, and their hardware may not be transferrable to another provider. Other VoIP providers use internet –based software or software that can be downloaded to a computer, and the only equipment you’ll need is an inexpensive microphone. VoIP service providers differ in their rate structures as well as their hardware requirements. Some charge a flat monthly fee for the service; others charge by the minute, more like a traditional telephone company. Some charge for the hardware; others are completely free, supported by advertising. Typical monthly rates are from $0.00 to $25.00 for a personal line, and while some do charge for “out of network” or “long-distance” calls, the majority opt to provide these calls at no additional charge. While some VoIP providers require the subscriber to sign a multi-year contract, others have no such requirements. Some allow you to keep your current phone number; where as some services require you to obtain a new internet phone number. The flexibility in plan option and structure is almost infinite. The type of provider a business or individual chooses will depend on their expected use of the service. A business that plans to use the service to replace its 100-line call center would naturally choose a different plan and provider than an individual replacing their personal land-line.
- Unlike with the traditional telephone industry, the number of VoIP service providers is great, and continues to grow. This can make deciding on the right provider for you a difficult chore. Some of the most popular providers and their rate structures and technical requirements are shown in this table.
- The Cost SavingsThis is the primary reason VoIP is growing.VoIP takes the place of traditional phone service’s and can link offices located geographically across the world. Collaboration/ Data SharingVoIP uses a computer to enable the access of information. Collaboration is increased due to the ease of transferring data between group members.PortabilityA VoIP phone has an address built into it that is unique to your phone. This enables its use from any location with an internet connection.OptionsMany providers are available when choosing VoIP software, and many are free.
- Video/Audio QualityQuality becomes an issue in certain circumstances.VoIP sends files by breaking information into a series of packets. These are transmitted in a sequential order. They may arrive at their destination in order, or out of order. Normally, the recipient can use sequence numbers to figure out the order the packets go in, and reassemble the data.CompatibilitySome VOIP systems are proprietary and will only allow calls to others who are using the same software.Availability/ReliabilityInternet connection and external power are necessary to use VoIP technology and therefor its availability is restricted. VoIP is only as reliable as your internet connection, if you lose signal you will lose your call.Emergency CallsEmergency call centers use phone numbers to locate the caller; this is not possible using the current VoIP technology.Experimental software is allowing 911 calls to be routed to the proper dispatcher.