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Why Your Business Should Look at Internet Phone Calls

Posted on: Thursday, 23 February 2006, 09:00 CST

By LOUISE JENKINS

IF you've got broadband, the chances are that you've recently been offered the chance to get cheap, or even free, phone calls through it.

The technology is called Voice over Internet Protocol (VoIP) and it's the latest battleground in telecoms.

The technology has been knocking around for a number of years but it is now making its way into the mainstream. And within 10 years, according to BT's estimates, all phone calls will be connected via VoIP.

So how does it work and why should your business be looking seriously at it?

VoIP uses a data network, such as the internet, rather than traditional phone lines to send voice calls.

There are three ways of using VoIP. The first is to plug your ordinary phone into a small box, called an analogue telephone adaptor, which plugs into your broadband connection. You can also opt for an IP phone - a special handset which plugs straightinto an Ethernet connection.

Alternatively you can use a softphone, whereby a programme is installed on your PC and you use a microphone and speakers, or a headset, to communicate.

Regardless of the type of phone chosen, it will be used in the same way as an ordinary phone - you'll hear a dial tone, dial numbers and be able to call anyone with a phone, whether they're using VoIP or not.

The two main benefits of VoIP are cost and features. Phone calls are free or cheap because you only pay for the part of the connection that touches the ordinary telephone system - you've already paid for the internet bit through your broadbandconnection.

That means you can make long-distance calls at local rates as you're only paying for the "last mile" - the connection from the nearest telephone exchange to the call destination. And if you're calling someone on the same VoIP system as you, the call isfree.

VoIP can also provide features that traditional phones can't. These range from detailed call logs to web-based management of your phone set-up and the ability to choose your own area code to integration with PC applications, such as being able to attachdocuments to phone calls or call someone directly from Microsoft Outlook.

Before you dump your existing phone, there are a couple of things to consider though. Firstly, VoIP is dependent upon a reliable power supply and internet connection.

Unlike the traditional phone system, which still works if there's a power cut, if you lose power or internet access you'll also lose your phone service. And some VoIP services can't connect 999 calls.

There are also some worries about call quality. At their best, VoIP calls are clearer than ordinary phone calls, but should they hit a congested part of the internet, or your system be badly configured, they can suffer from delays, jitters and echoes.

However, with VoIP newcomers, internet service providers and traditional phone companies trying to win customers over, there are some good deals to be had. Some services are free, the most famous being Skype, but if you're after a service more in linewith your traditional business phone system, then you're best opting for one of the paid-for services. Prices vary from pounds 2.99 to pounds 25.99 a month, depending on the package you choose.

BT have a special offer for their Business Broadband customers until mid-April. Sign up before then and you can add Business Broadband Voice for pounds 14.99 a month for the first three months (it's pounds 19.99 after that), plus free connection and freeline rental for the first three months (normally pounds 5).

The package includes two VoIP lines, unlimited UK phone calls and a fixed cost of 25p for all calls to mobiles. It also includes an impressive range of features, such as call forwarding, call rejection, three-way calling, call waiting and caller ID.

On the downside, BT make you sign a 12-month contract, although there is an option to cancel at three months. You'll also need to buy a telephone adaptor separately.

Vonage are one of the new VoIP specialists. Their Small Business Unlimited plan costs pounds 18.99 a month. For that you get unlimited calls in the UK and Ireland plus a fax line with 500 minutes.

Calls to mobiles cost between 5p and 15p a minute and features include voicemail, caller ID and call diversion.

Vonage is also one of the few providers to support emergency calls, and they provide a phone adaptor.

Source: Daily Record; Glasgow (UK)

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