VoIP is the newest advancement in audio communications technology, and has avariety of different applications that make it useful. VoIP stands for Voiceover Internet Protocol, and how VoIP works is actually quite revolutionarybecause it streamlines the process of sending analog audio signals by convertingthem to a much easier to send digital form for transmission.

To understand how VoIP works, you'll need to understand the basic conceptbehind regular analog audio communication as well, since this is the precursorfor VoIP. Analog phone calls are actually made via fiber optic networks bydigitizing your voice communications for sending the signal across thousands ofmiles, but once it gets to the final destination (a home or office phone, forinstance), the signal is once again converted to analog.

During these calls, the switches remain open even while there is dead air andno conversation is taking place; the circuit is also open in both directionseven when only one party is talking and the other is listening. This isn'tterribly efficient, and slows down the communication of informationconsiderably.

Packet switching streamlines VoIP

VoIP works on a different premise -- rather than circuit switching, datapacket switching sends and receives information only when you need it instead ofin a constant stream. It also sends the information packets along whatever openchannels are available rather than a dedicated line, which is much moreefficient. The information is simply reassembled at the source.

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

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

For companies, the savings in long distance charges can be in the hundreds oreven thousands of dollars per year. If companies also make extensive conferencecalls, VoIP makes even more sense when combined with conferencing options suchas 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 athing of the past. As more and more consumers turn on to VoIP and broadbandconnections make it easy and inexpensive (as well as practical) to make phonecalls over the Internet, fewer individuals will be willing to pay high rates tomake a telephone call they can make for free or next to nothing via theircomputer.

VoIP saves you money on long distance

There's no by-the-minute charges with VoIP, no set-up fees, and no "time ofday" or overages. That's the great thing about VoIP plans. You just pay amonthly fee and get to make all the calls you want over your computer for onemonthly fee. It's so simple and elegant, and it's the solution that everyone'sbeen 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 maketelephone calls with VoIP. There's also the advantage of being able to use yourVoIP connection from anywhere -- remember, you're not tied to a phone jack touse your number, but an Internet connection, so you can call from anywhere withmany calling plans.

Some of the companies that offer excellent VoIP plans with unlimited callingare 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 tostandard conference calls, and looking into these packages will give you an ideaof some ways to combine VoIP with extras such as white boards, document sharingand video. For less expensive options, many companies can provide strictly audioVoIP conference calls combined with text messaging and document sharing withoutvideo.

Some companies that offer VoIP in web conferencing packages separate fromvideo 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 distancecalling will be changing greatly in the near future as VoIP changes thelandscape of telephone service. "Land lines" for long distance calling willeventually become obsolete as broadband becomes more common and makes VoIP justas commonplace as any other type of telephone call.

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

This article on the "How VoIP Works" reprinted withpermission.
Copyright © 2004-2005 Evaluseek Publishing.

About the Author
Lucy P. Roberts is a successful freelance writer providingpractical 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.