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How VOIP Works

In VOIP System Quotes on September 10, 2010 by businessbuyguide Tagged:

What is VoIP?  VoIP stands for Voice over Internet Protocol, a system that allows users to make and receive telephone calls over a broadband internet connection. Your voice, which is an audio signal, is converted into digital information then sent over the internet to the other party. You don’t have to go through a telephone company and its networks – so yes, you get to skip the charges, too. Imagine that, making phone calls for free!

Major telephone companies are also working to set up their own VoIP networks to jump on the bandwagon, or perhaps to get old customers back and recover some of the money that they have lost due to the popularity of VoIP.

Aside from cost, a major difference between PSTN (public switched telephone network) and VoIP is the way these systems work.

PSTN employs circuits. During a call, a circuit is open and cannot be used until the call is over. VoIP utilizes packet switching, making it more efficient and thus cheaper. With old circuit networks, more and more circuitry had to be added constantly to accommodate an ever growing customer base. On the other hand, packet switching enables data to be “packeted” then sent across the network via whichever pathways are open at that time. A packet is directed by the caller’s IP address, and it only takes seconds for it to reach the recipient.

There are three types of internet telephones that can be used to make VoIP calls: the ATA (analog telephone adapter), the IP phone, and the personal computer. The concept and ease of use for all three are basically the same.

An ATA is probably what comes to mind for most people when they think of a computer phone. This simple device makes a standard telephone VoIP ready by connecting it to the internet. The adapter turns analog signals into digital information then sends it across the internet connection.

An IP phone is similar to a traditional telephone with an ATA, except it has a built-in Ethernet connection which eliminates the need for an adapter.

Lastly, one can use a computer to make VoIP calls to another computer. It is possible to not incur any long distance fees using this method, hence making it a popular option.

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