How VoIP technology can cut communication costs

In today's global scenario, VoIP truly serves the purpose of connecting people from around the world at affordable cost. VoIP or Voice over Internet Protocol works by conversion of voice into digital signals sent as compressed data packets through the Internet. The underlying procedure is quite similar to what happens when a user enters a website's URL in the address bar and hits the "Enter" tab.



The benefits that you enjoy over the Internet carried over to VoIP



The most prominent benefit is cost efficiency. Traditional PSTN telephone communication costs a fortune when it comes to long distance calling. VoIP is especially useful for making affordable long distance calls where the cost savings are simply phenomenal, over 70% at a time. With the user making calls through the medium of Internet, the rates are considerably less. For general usage where the majority of calls are local the benefits translate into about 30-50 % of cost saving.



Another factor where VoIP scores over traditional phone communication is reduction in equipment and maintenance charges. The savings can be quite high as compared to companies that have a PBX system installed on the premises.



Companies that operate from different locations are best placed to take advantage of VoIP. With increasing technology sophistication it is possible to send data files like text, video and fax documents through VoIP channels. The voice clarity is crisp and the call drop rate is almost zero as compared to earlier Internet Telephony standards.



What about the infrastructure?



VoIP needs minimum infrastructure to be utilized. Users mainly need a broadband Internet connection. The other requirement is a computer or an IP phone to actually make the call. An easy option is to download software from your service provider’s website and you are good to make calls in quick time.



In case you have a standard analog phone, you can transform it to an IP phone with a VoIP adapter. IP phones on the other hand have all the features on board and are ready to be used by just plugging in to a broadband Ethernet connection.



VoIP offers a number of user friendly features at low cost like



• call tracking

• call forwarding

• call holding

• voicemail



VoIP and Mobile phones



VoIP also enables flexible communication and can be integrated with mobile phones. Wireless VoIP enables the user to make low cost calls from any place where one can connect to the Internet like from Wi-Fi hotspots at airports, cafes and hotels. VoIP makes for great portability. You can stay connected with the office even from home.



What’s more you can carry your VoIP number with you on vacations and ensure you are reachable at any hour if need be.



VoIP and Sales or Marketing



VoIP has proved to be beneficial for the sales and marketing domain which depends upon timely communication for success. A sales executive could easily make a presentation to one’s manager and colleagues by way of VoIP using the conference call, webcam and data sharing facility from a different location.



Virtual meetings are now commonplace in the telecom industry which has greatly helped increase sales thanks to VoIP. Features like these help in speedy decision making resulting into better productivity and higher revenue over the long term.