Voice over Internet Protocol (VoIP)
VoIP is the system which allows telephone conversations to be held "over the internet" and therefore "free".
However, for practical use in smaller businesses it is our firm opinion (at January 2006) that VoIP has huge potential but the technology is not quite there yet.
The reasons for this assessment of the market are:
- VoIP may give a business with a number of offices a "free" way to communicate
between its own branch offices (only) - but this is subject to having good
quality broadband connections and the necessary hardware.
- It is much much easier to set up VoIP between individual users at home where
commercial-grade networks and firewalls are not involved - it's ideal for calling
the rellies in Oz for free, for example! - and this ease of use for individuals
is partly responsible for the current high profile in the media.
- A test of a VoIP service like Skype across the computer network in a single
office is not in any way a realistic representation of VoIP performance in the
real world. Such a test will be your local network data speed, not at internet
data speed which is about 1/20 of that at best.
- Calling across the country or across the world is dependent on the quality of
the broadband connections at each end and (especially) the network conditions
across the internet in general. These are all variable and unpredictable and
likely to cause "user frustration", shall we say...
- VoIP has a number of different technical standards. Skype is proprietary as
it only works between Skype subscribers, and SIP (one of the alternatives) might
become the common standard - but (like the VHS vs Betmax "video format wars" of
twenty years ago) that's not yet the case.
- If you want to make a call which originates from or terminates to a landline
you will pay a (sometimes expensive) landline call charge. In other words, one of
your staff using Skype (for example) to call your head office landline from abroad
will be "free" from his computer abroad to the UK and then at the financial mercy
of the carrier to patch it through to your office.
- There is little choice or information on these landline charges and we are
aware of users who have had a nasty surprise when the bill comes in.
- Someone who wanted to call your VoIP terminal from a landline may be given an
0870 number to dial, and these have much greater call charges than local or national
rate numbers. See the SayNoTo0870
website for the backlash on this quiet rip-off being perpetuated on the Great
British Public - or ask your telephone
provider the specific question "what do you charge for calls to 0870 numbers" and
be prepared for an unpleasant surprise. The so-called "cheap call" providers are
often the most expensive to 0870 numbers.
We therefore suggest that VoIP is currently suitable for "casual" calls around the company and around the world, rather than for making calls with the "business-critical" level of quality and reliability you get from your conventional landlines.
We know that the VoIP market will continue to develop, and when we are happy that systems are cost-effective for the smaller business we shall revise this page accordingly.
Archie Bell, January 2006