VoIP: FAQs

What is VoIP? How does it works?

VoIP is a term used in IP telephony for a set of facilities, for managing the
delivery of voice information using the Internet protocol (IP). In general, this
means sending voice information in digital form, in discrete packets rather than
in the traditional circuit-committed protocols of the public switched telephone
network (PSTN).

Organizations
are already using messengers, so why invest in VoIP?

Instant messengers like Yahoo! or MSN do have integrated voice capabilities
that allow PC-to-PC voice conferencing over IP networks. But enterprise
telephony is different; it needs to cater to the business users and usage
patterns. It needs to be ubiquitous and reliable as a regular telephone, while
simultaneously reducing the total cost of ownership. VoIP is ideal in this
scenario.

Many businesses already have sophisticated computer data networks and network
management. VoIP provides highly cost-effective voice communications by layering
voice applications onto the existing data networks. By taking advantage of these
assets and fixed rates on Internet, access companies can achieve significant
savings. The major benefits are:

l Substantial savings
on long-distance and international calls

l Remote office
workers and mobile employees can take advantage of all corporate telephone
capabilities, including the ability to make and receive phone calls at their
assigned extension

Does it mean that my existing network becomes redundant?

Today, most enterprises already have a data network in place, and it’s
quite possible that the network is riding on the IP backbone. VoIP technology
sits neatly on top of this. So there’s no extra cost in building the
infrastructure.

How will my organization benefit from VoIP?

For multi-location enterprises, which are spread across the country, VoIP
can bring about huge cost savings in voice communications when compared to
traditional PSTN setups. Studies have shown that 70 percent of long-distance
telephony bills are incurred intra-enterprise. These bills can be reduced
drastically once we start using low-cost VoIP solutions for intra-enterprise
communications. Users can bypass long distance carriers and their per-minute
flat rates and run their voice traffic over the Internet.

VoIP is futuristic, it can help integrate many applications into a system
like unified messaging, caller preference, Web services, etc. It provides
operational agility, as you can add new services and users to the network with
fewer burdens on the existing system. This can pave the path for more revenue
earning possibilities.

Lastly, since IP telephony is based on a single network, the maintenance
costs fall automatically. Efficient use of bandwidth adds to the efficiency,
bringing the operation costs down automatically. The simplified network
infrastructure of an Internet telephony solution cuts costs by connecting IP
phones over LAN wiring system and eliminates the need for dual cabling.

Does this mean a huge investment to start with? What’s the ROI?

There is a considerable ROI upon setting up a VoIP-based service. The
capital expenditure that is required for providing ‘n’ new services over
traditional networks is higher than that required to provide equivalent services
over an IP framework. In fact, new IP-based frameworks make it easier to create
new services and then execute the same with minimal investment and re-compiling.

The return on VoIP infrastructure environment derives from reduced number of
networks, easy network management, freedom from proprietary legacy switches,
lower long distance costs and improved IP-based services for customers and
employees. Most of the above is quantifiable for an enterprise by its CIO and he
in turn can calculate his payback discreetly.

What about QoS?

This is one of the most critical factors while going for a VoIP network.
Most organizations question the QoS for the simple reason that data networks
were not designed for voice and latency is critical for voice packets. But with
adequate bandwidth availability in the internal networks, the quality of calls
can match that of PSTN calls. The three factors that can impact QoS are delay,
jitters and packet loss.

Many organizations are implementing a number of tools and techniques to
ensure QoS.

·Controlling network environment in which capacity can be pre-planned and
adequate performance can be assumed

·Management tools can be used to configure network nodes, monitor
performance, and manage flow and capacity on a dynamic basis. Traffic can be
prioritized by location, protocol or application types

·Adding control protocols and mechanisms like real-time protocol (RTP), etc,
should be used. The equipment vendors should comply to certain standards for QoS

If a company opts for VoIP over its existing network, will it not strain
the network?

It will rather optimize the network. Most networks are under-utilized and
could easily do with bandwidth-hungry applications like voice and video.
Efficient use of bandwidth adds to the efficiency, bringing the operation costs
down automatically.

IP telephony was deregulated in April this year? Are there still any
regulations pertaining to the adoption and usage of IP telephony?

The Indian government deregulated Internet telephony for international
calling on 1 April, 2002. Most of the ISPs in India have grabbed this
opportunity with both hands, and offered cheap pre/post paid ISD calling service
for their subscribers.

Today, the Indian consumer has multiple options for cheap international
calling. Six months back, they had only VSNL as an option. Competition has
brought down the prohibitive ISD cost, although QoS is not at par with
circuit-switched calls. This is so because the public Internet actually
transports the calls, which is not manageable.

The government never regulated VoIP in a closed user group (CUG). However,
the government still does not allows the convergence of the CUG network with the
PSTN network, which definitely is a hurdle in the growth of VoIP in the Indian
market.

What will be the future of a VoIP network?

VoIP technology is definitely here to stay. VoIP’s core benefit is its ability
to make next-generation converged network a reality. In a converged network
environment, telephony and data signals are transmitted as packets over the data
network.

According to the latest survey by Frost and Sullivan, IP-PBX is projected to
take over traditional PBX in terms of revenue by 2008. With new applications
coming on converged networks, their implementation in the enterprises is no
longer the question of ‘if’, but ‘when’. A new class of flexible,
instantaneous, multimedia applications enabled by session initiation protocol
could well be the impetus for more companies to deploy converged networks.
However, even with the rise of IP PBX, the legacy TDM market will continue to
co-exist with the new IP equipment. Companies will take a gradual approach to
migrate to a converged network.

Manish Sablok, national
marketing manager enterprise class IP solutions, Tata Telecom