Why VoIP

Different but Not So Different
Voice over Internet Protocol at its core is a group of technologies and methodologies allowing voice communication via an Internet connection instead of a regular (or analog) phone line. The basic mechanics of VoIP versus traditional telecommunications are actually very similar, but the transport method is run across the Internet rather than copper wires.

Businesses are comfortable with handsets found in the office, and years of consistent operation have cemented their place as a necessary business service. After all, receiving and making business calls have been around for generations!

When considering switching services or adopting nearly anything new, it’s important to understand the benefits as well as be wary to what may change. VoIP phone service is a transition from traditional telephony that carries the benefits of a newer, more feature flexible technology while still retaining the familiarity of handset operation that everyone already knows. Additionally, with VoIP operating off your Internet connection there is one less service infrastructure that IT needs to be knowledgeable of.

Future Forward
Take a look at your non-VoIP handset and see what it can do today. The functionality and usefulness of that handset is most likely not going to change in the years to come as bandwidth (in this context, the rate of data transmission) becomes an increasingly limiting factor. VoIP handsets, by comparison, can range from the established functionality you find with traditional handsets to nearly full-fledged multimedia devices. These modern features are enabled through your organization’s Internet service, which is the underlying technology “powering” the handset. These include business features such as touch screens, LDAP/Active Directory integration, and even integrated web cams for video conferencing from your desk. With Internet connectivity working under the hood, the feature set of VoIP handsets will continue to push forward in the same direction as smart phones, tablets, and laptops.

Service That Works With You
A frequent ordeal in relocating an office or opening a new branch usually includes moving or adding services to the new location. VoIP is incredibly flexible and only needs voice services through a provider such as NocTel and a qualifying Internet connection. As a VoIP service subscriber, you will have one less installation to coordinate with for turning up service. All that’s required is connecting the handset into an approved network and allowing it to provision.

Additionally, it’s not uncommon today for companies to have a degree of international presence. The logistics of connecting voice service and the reachability between locations has been a challenge for many. With VoIP service operating over the Internet, even geographically distant locations are able to share the same talk rates and maintain the local number scheme. Not only does this make it easier to reach others in your organization, it also saves money on the cost of service as calls between international offices are billed at the same local rate. For offices that are located in different states the same idea applies – one organization, one area code, one block of numbers, and consistent extensions.

Why VoIP and Why Now?
While VoIP technology has been around for 40 years now, it has absolutely exploded in the past five years as a reliable, cost-effective alternative for a wide array of organizations. Market research for the United States is illustrated in Figure 1 and Figure 2 displaying the increasing trend of VoIP subscribers and the decreasing trend in fixed landline subscribers respectively.

Figure 1. Bar graph depicting increasing trend in subscribers to VoIP services from 2010 to 2015 within the United States. [1]

Figure 2. Bar graph depicting decreasing trend in fixed landline subscribers from 2010 to 2015 within the United States. [2]

Since 2010, subscribers in the US alone have increased by 300% while fixed landline subscribers have decreased by over 10%. This trend isn’t just limited to the US however. Figure 3 shows that global market revenue for VoIP services is expected to reach 130 billion US dollars by the end of the decade.

Figure 3. Projected global revenue of the VoIP market measured in the US dollar from 2015 – 2021. [3]

Overlooking the effects VoIP is having on the telecommunications industry is the equivalent of a business in the 90’s failing to see why they would need a website. The verdict is clear: organizations are embracing more cost-effective, reliable, and flexible options for telephone service.

The “why” to VoIP is predominantly fueled by the ubiquity of high speed Internet in the modern world. Today, even small organizations may have access to fiber connections. With the rise of the “Internet of things,” we sometimes fail to notice that VoIP handsets are among the list of devices in our modern landscape of interconnected products. As the web continues to connect us, the growth in quality and availability of Internet connections enables future-flexible technologies like VoIP to grow alongside with it.

[1]. http://blog.axvoice.com/ustelecom-industry-from-2010-to-2015-a-research-by-axvoice/
[2]. http://blog.axvoice.com/ustelecom-industry-from-2010-to-2015-a-research-by-axvoice/
[3]. Zion Market Research Company