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Internet Voice for Small Businesses

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Internet Voice for Small Businesses

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Home Page > Technology > VoIP > Internet Voice for Small Businesses

Internet Voice for Small Businesses

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Posted: Nov 10, 2008 |Comments: 0
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Internet voice offers plenty of potential savings and productivity for small businesses. You can pay a fixed fee for monthly calling plans that include unlimited long distance coverage of North America and have the ability to program your phone to follow your movements without ever having to talk to a phone company representative ever again.

As an example, you have access to a wide range of business services that previously were only available to larger corporate users, including: call forwarding, multiple simultaneous rings (where an incoming call can be answered wherever it is more convenient), follow me (where incoming calls are routed to particular numbers at particular times of the day), and do-not-disturb. All are now part of most Internet voice service plans at no extra charge.

The downside is that your phone is more closely tied to your Internet service, which is less reliable than standard land-line phones. If your connection goes south, so does your phone service.

There are three basic different types of business Internet voice service. Most providers offer monthly plans that start at $50 per line including Verizon’s VoiceWing for Business, AT&T’s CallVantage, Packet8.com’s Virtual Office and various business phone plans from other high-speed Internet providers that are basically a two-line version of their consumer service. All of those offer minimal features and are designed for a single office location. They also make use of standard or analog telephones that you buy in any office supply store.

The next step up from these plans are ones from what is called a “hosted service” that is provided by VirtualPBX.com, M5Net.com, Bandwidth.com and numerous others. Basically, those providers rent you space on their systems and connect up your offices via high-speed Internet lines. They typically start at several hundred dollars a month but also include a high-speed Internet connection that you can use for other applications such as Web and email.

The most expensive level is buying your own Internet voice PBX, or phone switch. That can cost more than $1,000 for the switch, and more than $500 a month for the various plans, and is designed for larger offices. Both Linksys and D-Link offer less expensive switches but require configuration and help from a consultant.

Here are some questions to ask before you decide on which business plan is the right one for you.

1. How many incoming phone numbers do you need?

If you have inbound fax lines and analog answering machines that you can’t or won’t get rid of, you need to figure out a plan for either keeping these lines or substituting work-arounds to continue using these phones. The various Internet voice services also vary in their support for inbound analog lines, something that is also worth investigating.

This is also a good time to calculate how many new digital phones you’ll need to buy. Given that prices are rapidly dropping on phones, it doesn’t make much sense to buy any more than what you need at first.

Also, you will want to investigate whether you can keep your existing inbound office number(s) when you move to the new Internet voice system. Some of the providers can move your numbers in some locations, and some can’t. It is worth checking: There are many reasons why they can’t be transferred – some political, some technical – but if you need to keep your existing numbers you may have to continue to pay your local phone company for minimal service for these lines.

2. How many different offices will you want to tie together under a single plan?

If you are just buying service for a single location, start with the simplest plans and see if they will meet your calling needs. Things get complicated quickly as you involve having multiple, geographically distant offices that can be connected via one central office number. Do you want everyone in these offices to have their own extension, to give the impression that they are all working out of the same “office?” That is what providers such as VirtualPBX.com are geared toward.

3. What kind of high-speed Internet service do you presently have to your office?

The type of connection is critically important to your experience with Internet voice business service. Voice quality is directly related to things such as network latency and packet delays that can cause drop-outs and degrade the overall audio of your calls. You will need to hire someone who specializes in Internet voice applications or spend some time understanding these issues and testing your existing connection. If you hire an Internet voice consultant, he or she should be able to do that for you.

Before you attempt anything, a good place to start is with TestYourVOIP.com, a free service that can indicate whether your connection is fast enough to support voice applications. Ideally, you want to purchase what is called a T-1 line for an office that has more than five people.

4. Do you need to upgrade your office wiring and network?

If you are working out of a home office or a place where you can wire up your phones, then you are in better shape for Internet voice, because you will probably need to do some wiring. Internet phones require more recent and higher quality network wiring than your average computer. Again, your voice consultant should be able to make the appropriate recommendations, but realize that this could be part of the cost of the overall job, and it could get pricey if you have to replace switches, routers and other network gear.

A second issue is whether you want to deploy Power over Ethernet switches to power your new digital phones. Sure, you can plug the new phone into a standard AC wall socket, but that might not be convenient or as reliable as having them get their power from a central wiring closet that has battery backup in case of power failures. Here again, you may be looking at buying new switches to handle that.

5. Do you want to make or receive calls from your laptop?

One of the big advantages of Internet voice is being able to take a phone and connect it anywhere on the Internet and have it work as if it is sitting in your office. But to get to this point, you need equipment that can support remote users. In some cases, you will need a phone that has a built-in Virtual Private Network client (Snom.com sells such IP phones, for example) to connect to your corporate network, just like a remote PC user uses. You’ll also need a good quality USB headset to make the calls and have software that works with your Internet Service voice provider.

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admin — Thu, 18 Mar 2010 15:34:28 +0000

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Voice Over Ip Telephony Comes of Age

admin — Wed, 17 Feb 2010 04:30:25 +0000

With the advent of widespread broadband Internet connections, consumers are discovering what businesses have known for a while. Voice over IP telephony, or VoIP as it is known, can be a viable and cost effective alternative to the Plain Old Telephone System (POTS). As VoIP upstarts are popping up everywhere, most notably Vonage, Packet8 and Skype, even the big Internet Service Providers are offering voice over IP packages to their residential subscribers

Such features as caller ID, call forwarding, automatic redial, and even 3-way calling are standard on most VoIP packages, whereas many phone companies consider them add on’s and will charge you extra. But the real kicker is, if it is right for you and you pick the right Voice over IP solution, you should be able to reduce your phone bill by half or more.

How Does Voice over IP Work?

IP Telephony is a packet switching technology, as opposed to circuit switching as used by the PSTN (Public Switched Telephone Network). The PSTN method uses copper wires to physically connect one caller to another through a series of circuit switches, as illustrated by the switchboard operators of old.

In voice over IP, the analog voice is converted into digital packets that are routed through the internet, and in the case of one of the parties being on a PSTN connection, the packets are routed to the nearest local switching station and placed back on the PSTN. If both persons are using VoIP, then there is no reason to use the PSTN, and the entire conversation takes place over the Internet.

Needless to say, this is much more cost effective than using land lines for the entire distance. If a caller in New York uses VoIP to call a PSTN number in Seattle, the call doesn’t leave the internet until it reaches the switching station in Seattle, making it for all practical purposes, a local call.

The Drawbacks of Voice over IP Telephony

There are some points that one should seriously consider when thinking about dumping the POTS. VoIP generally requires a Broadband Internet connection, which in turn requires power. If a power outage should occur, you have no telephone service. Battery backups could solve this problem, but not on a long term basis. Internet Service Providers (ISP’s) also have a tendency to go down occasionally, though they are getting better all the time. Calls can be forwarded to your cell phone if your power is out, but in real disaster situation, even cell phones are not a perfect backup, as seen by Hurricane Katrina. Faxing over an IP network has proven to be problematic. Fax machines scan a document and convert the data into sounds, which don’t travel well over the internet. In IP telephony, much progress has been made on a standard called T.38, whose mission is to convert the fax sound into sendable data. Another option is iFax, the T.37 standard that sends faxes as an email attachment or a remote printout using the Internet Printing Protocol. Today, separate Fax lines can be added by most VoIP providers for an extra charge.

Emergency services such as 911 are also an issue with IP telephony. It is the nature of the Internet that tying a particular node to a geographic location is quite difficult, and street addresses are not easily routed to a nearby call center. In the U.S., the FCC has mandated that VoIP providers implement Enhanced 911 (E911). Providers are making progress by encouraging their customers to register a street address to their phone number, enabling them to route emergency calls to a nearby call center.

Voice over IP and Broadband Connections

While a broadband connection is not absolutely necessary, it is what makes VoIP shine. Many households are turning to DSL or cable modems for their internet connections, and wireless broadband WiFi hotspots are popping up everywhere.

The problem with DSL is that it is provided by telephone companies which for the most part require you to have a landline, pretty much defeating the purpose. Some regional Telco’s are starting to unbundle their DSL services by offering “naked DSL”, an Internet connection without the analog line on the local loop. When you think about it, there really doesn’t seem to be much motivation for the Telco’s to promote VoIP, as it would effectively be like cutting their revenues in half.

If your household has cable television, you more than likely can get broadband access through a cable modem. Most cable providers charge around $50 a month for broadband internet access, and for those who utilize the Internet often, a high speed internet connection is well worth the price. Some cable IPS’s offer residential Voice over IP for $40-$50 a month. Through the pure play VoIP companies like Vonage or Packet8, you can get VoIP for around $15-$25 a month, potentially eliminating the need for a land line at all.

Wireless networks also work great for VoIP, and are especially convenient if you travel a lot. Hotspots all over the world allow you to call anywhere using a WiFi VoIP phone. Internet phones come in all shapes and sizes with all kinds of bells and whistles. From a full business desk phone from Cisco, to phones indistinguishable from cell phones, even regular cell phones that are VoIP capable new products and technologies are coming out every day to get you better connected for less.

Voice over IP telephony has come of age. If you have access to a broadband Internet connection, you could conceivably cut your phone bill by half or more, never pay long distance charges in the U.S. and Canada, and pay way less for International calls as low as 3 cents per minute. Sound quality is usually as good as a cell phone connection. To test you current broadband connection, visit http://www.TestYourVoip.com and download the java applet. In about 20 seconds they will show you in detail how your VoIP phone call would fare to and from national and international destinations. Once you know if your connection can sustain the extra traffic, it’s just a matter of finding a reliable Voice over IP telephony service provider.

Author Michael Talbert is a certified systems engineer and web site designer. For more information on Voice over IP Telephony, visit the website www.VoIP-Facts.net

The VoIP Service Provider: Residential VoIP Solutions for the Consumer

admin — Tue, 15 Dec 2009 22:32:43 +0000

As technologies mature and more households gain access to high speed Internet, consumers will come to realize that it is simply more efficient and cost effective to send packets of voice over the Internet than over a point to point circuit switched land line. Long distance charges become a thing of the past, and international calls are pennies a minute if not free to some countries.

VoIP solutions are readily available to anyone with a high speed Internet connection, and the only hardware needed is an Analog Telephone Adapter (ATA) and a phone. For most consumers, utilizing a calling plan from a VoIP service provider is the best solution. Most VoIP service providers will provide the ATA hardware (or software) for free, and monthly charges range from free on up.

Peer to Peer VoIP

The least expensive VoIP solution would be using a computer on a peer to peer network. Offered from such VoIP service providers as Skype or the Gizmo Project, the software is free to download and calls within the network are free worldwide. Calls to PSTN numbers are charged at a low VoIP rate. Peer to Peer VoIP is a software solution, meaning that no ATA is required, and your phone is a pair of earplugs and a microphone plugged into your computer. The downside is that call quality is lacking compared to some of the hardware VoIP solutions available.

The “Pure Play” VoIP Service Provider

Over the past few years, a new generation of upstarts has introduced themselves into the residential VoIP arena. Probably the most successful (at least popularity wise) would be the VoIP service provider Vonage. Thanks to their lavish spending on advertising, the technology of VoIP is becoming mainstream, and the general public is beginning to realize that if the circumstances are right, Voice over IP can be a viable cost saving alternative to the Plain Old Telephone System (POTS).

Vonage, Packet8, and SunRocket are just a few of many companies that are pure-play VoIP service providers. They have no interest in selling you cable TV, conventional telephone service, or cellular minutes. Monthly plans range anywhere from $7.00 to $40.00 and calls are free in the U.S., Canada, and in some cases Europe. International rates vary with many countries as low as 2-3 cents a minute.

These are the companies that have pioneered residential VoIP for the consumer and with their low monthly calling plans, the companies that will keep the giants in the Telecommunications Industry honest.

Telco’s as VoIP Providers

Just as deregulation and the advent of cellular technology in the past, VoIP is poised to revolutionize the Telecommunications Industry. And the large telephone companies, even the cellular phone companies are entering this new era kicking and screaming.

Telco’s like AT&T, the regional Bells and others are happy to provide broadband internet access through DSL, but very few are willing to unbundle the internet service from their conventional telephone services. They could do it technologically, and a few local phone companies are offering DSL on the “local loop”, without the wire with the dial tone. The fact is, having a broadband connection that requires you to also buy a conventional telephone connection pretty much defeats the purpose, thus making VoIP through DSL impractical for most people.

That said, the Telco’s see the writing on the wall and are slowly beginning to implement Voice over IP telephony. AT&T and Quest Communications offer residential VoIP solutions starting at $25.00 and $30.00 respectively, just slightly higher than a pure VoIP service provider. All of the basic features such as call forwarding, speed dialing, and 3-way calling are included, and premium services like virtual phone numbers, conference calling, and call filtering can be had for an additional charge. International rates seem to be somewhat higher than pure play rates, though only by pennies.

VoIP and Cable Companies

If anyone is in a position to win the Telecommunication wars, it’s the cable companies. Massive consolidation in the cable industry has led to huge privately owned networks that in many cases make it unnecessary to route calls over the public Internet. Quality of Service issues can be handled in house, and after all, companies like Cisco Systems pretty much built the Internet and are largely responsible for the development of Voice over IP Telephony.

Cable companies as VoIP service providers have the ability to bundle voice with high speed data and digital cable TV, and are even now running introductory offers of all three for 99.00 a month in some markets. But be careful, introductory offers end and VoIP plans with the cable companies are some of the most expensive to be had.

While VoIP service providers like Comcast and Time Warner generally receive good reviews for sound quality, monthly calling plans cost $40.00 and $45.00 respectively. Not bad when looking at a $70.00 phone bill from Bell South, but over twice as much as a pure-play VoIP service provider. No doubt, a good reliable broadband connection through a cable modem is the ideal VoIP solution (wireless notwithstanding), but you don’t have to use your cable company for VoIP.

In the end, it all depends on whats important to you. If all you need is to call a friend in China on the same network, then a peer to peer VoIP service provider is for you. If you live in an area where it’s offered, a telecom VoIP solution promises lower bills than their conventional connections, provided you can drop the land line.

For those that have cable modems, the choice of VoIP service providers is vast. For the monthly cost of another broadband connection, cable companies will come out to install the equipment and rewire every jack in your house. And they are just a service call away. Alternatively, the pure play VoIP providers offer the lowest rates around, and the quality is usually just as good.

Just remember, it’s all in the pipe. Calls will be as clear as your VoIP service providers’ network is uncongested.

Author Michael Talbert is a certified systems engineer and web designer with over 7 years experience in the industry. For more information on Voice over IP Telephony, visit the website VoIP-Facts.net, or the VoIP Blog for up to date industry news and commentary.

How Can VoIP Support Small Business Growth

admin — Mon, 14 Dec 2009 22:33:04 +0000

Here’s the question …. how can you convince your management that a VoIP solution will support your small business?

The best argument for VOIP is lower communication costs … but it’s not the only reason.

I would suggest using hybrid solutions. Where the bulk of communication, voice, and video are done through VOIP …. and emergency services “fall back” in case of Internet fail is done with minimal classical PSTN solutions.

When I say VOIP from now on I mean 90 % VOIP and some minimal PSTN add-ons.

Why VOIP?

1- Lower communication costs ….

While this is basically clear it still needs to be demonstrated. Assume you have a company that most of its calls are from “overseas” to the USA and vice versa.

You need to get the cost of all such calls currently on one side …. and then compute what would be the cost in case all Intercontinental calls went through a VOIP system.

Now you have the number of calls * local call quantity* local call cost.

You can compare the costs in both situations.

a. I would take the worst case scenario where none of the calls in either side ends in a VOIP end station like Packet8. To make the comparison complete you should add all static costs as well: equipment cost, support cost etc.

b. Simply compare the price of adding a 2MBPS PRI line to increasing your company’s Internet connection BW by 2 MBPS. That will show a lot to VOIP’s favor.

c. Long distance calls are severely affected by duration of the call. While local calls and VOIP goes into the PSTN, are much less affected by the duration. In some places in state calls are not charged individually but a monthly payment is done.

d. Equipment cost per end station is lower. While this is almost always true you need to prove that too by talking to a VOIP equipment provider, for example AVAYA, Cisco, NORTEL. And comparing the prices in both instances.

2. Adding new features to an existing PBX is messy most of the time …. while adding new features, capabilities and capacity is easy in VOIP.

3. A unified communication that has VOIP and IP running on the same enterprise infrastructure is easier to manage …. but of course needs more expertise.

4. You can have ‘local’ numbers anywhere a VOIP provider has a presence. Want to establish a presence in another state or country – start with a VOIP number in the new location that is answered by an existing office.

5. It allows you to virtualize your office. For example, a company provides after hours customer support by employing people to work from home in four time zones. VOIP allows the company’s PABX to be extended cheaply and easily into their home … even though they are in different countries and serviced by different telcos/ISPs.

6. Besides lower costs in contrast to PSTN, VoIP services provide better roaming, a possibility to quicker office relocation and total independence from local telephone companies (meaning that in theory you can buy VoIP services from any service provider on the globe). With VoIP services you can build a PBX which serves the same voice services to all employees around the globe thus making it possible to build virtual offices. You can also easily integrate voice, e-mail and presence services with VoIP technologies.

7. More advantages include …. Ubiquity through Unified Messaging, phone mobility, geographic growth through MPLS networks using centralized services, 50% less cabling in LAN, use a portable with VoIP Client plus headsets and digital/voip phones cease to be necessary, corporate voice can go through a data MPLS network, you can receive calls over the internet on your contact center.

Keep in mind that while trying to convince your company to favor a VOIP solution … it is also important to be open and explain all the pros and cons, everything.

* Quality of voice is similar to regular PSTN solutions but not exactly the same as POTS. It might be undiscernibly but still some difference exists. How close the quality of VOIP depends on how well your company’s infrastructure is ready for VOIP, how good an SLA (Service Level Agreement) you have with you Internet Service Provider.

* When the Internet is attacked intentionally or unintentionally all VOIP equipment, end points, VOIP phones will be affected. It is very rare that a PSTN system is brought down except when a catastrophe happens and everyone is trying to call everyone.

* Voip gained such a bad reputation over the last few years, as everyone still keeps talking about low call costs and free calls. VoIP is a reasonable cost installation but not Cheap at least if you use decent kit. If you try and do everything on the cheap then you get bad call quality etc and loads of hate mail from management.

There you go … most everything you need to develop a strong argument for implementing a VoIP solution in your company. For additional assistance to work through all the specifics …. and find the most cost effective providers (hardware and services) …. I suggest using Business-Voip-Solution.com. Their help is NO COST to you …. another advantage.

Michael is the owner of FreedomFire Communications….including Small Business Resources Cafe. Michael also authors Broadband Nation where you’re always welcome to drop in and catch up on the latest BroadBand news, tips, insights, and ramblings for the masses.