Cut-price communications: VoIP takes off
Article Date: Nov 01 2004Cheaper phone calls, improved call management and the ability to make your business a flexible workplace are just some of the benefits of voice over internet protocol (VoIP).
VoIP is an IT standard that enables voice calls to be made across computer networks. Voice data is compressed and sent using packet-based data networks, which means it uses up to 90 per cent less bandwidth than a traditional phone call. It can be used in individual local office networks or between sites. With broadband, VoIP can also be used to deliver services to remote users and home workers.
According to the Department of Trade & Industry (DTI), if your company is based across different sites, a VoIP-based system that integrates all your communication services across a single, shared network will let you share data between branches as well as send and receive calls. Possible services include video- or audio-conferencing, where several participants can work on the same document simultaneously, and listening to emails over the phone.
Slash your call costs
Peter Cameron, founder and managing director of telecoms consultancy Comverge believes that 2004 is a turning point for VoIP.
‘It’s been around for the last five years but now many more people are willing to brave the technology. But persistent fears do remain, such as, is the quality good enough, and will it replace traditional phone systems?’ He outlines three main areas in cost savings:
- Free calls If you are using a public IP network to make calls from one network to another, you are getting them for free, which is of particular benefit to a company making a large number of calls across several sites.
- Cheaper external calls Long-distance and international calls can be made for the price of a local call.
- Ease and speed in administration and set-up With VoIP on your computer network, you can add telephones and increase call capacity without having to pay for or install additional cabling.
‘A lot of people are still looking at a telephone system as an expense – you should be looking at it as a contributor to your bottom line. If you can look at it from a business efficiency point of view, then it’s easier to justify the additional expenditure at the outset,’ adds Cameron.
Getting started
Implementing a VoIP system can be a considerable investment – so if you are not starting from scratch, look at the features you need and scale accordingly for the future. Scrapping all your traditional phone systems is likely to cost you more in time and money. As the DTI explains, opting for a hybrid system will enable you to retain your installed investment in handsets whilst providing a platform to support future applications and user growth.
Siemon, a global manufacturer of network cabling solutions, says businesses should plan carefully before implementing any VoIP system.
‘Start at the foundation. Is the cabling infrastructure capable of handling the VoIP system? If installed years ago, does it meet today’s standards? The essence of VoIP is that voice and data will be running over the same cabling system. Will the increased traffic slow down existing applications and affect business operations?’ asks Rob Tansley, regional director of Siemon EMEA.
Be an early adopter
Ian Cox, industry analyst at Juniper Research, says the uptake amongst the small and medium-sized community is gathering pace.
‘There are several standards being used for VoIP and they all work very well. This year shipments of IP private branch exchange servers (PBXs) will overtake traditional PBXs in the UK. It should be no more difficult to deploy than traditional systems. Integration is probably more difficult with older PBXs and network issues will need to be solved,’ he advises.
Case Study — Increased and cheaper communication
Timber and builders merchant Stamco Timber is one of the early pioneers of VoIP. Four years ago, it developed a £2.5 million purpose-built production mill and distribution centre to increase its direct sales. A link was required with head office, to achieve costs savings and an increased ability to manage customer service and sales systems.
Improved efficiency
The company had an existing data link, but to maximise staff efficiency amongst its 100 employees, it required IP handsets and voicemail at the distribution site, as well as a cordless telephony system so that all key workers were contactable.
‘We needed to ensure the orders being placed at head office were being communicated properly to our distribution site. One of the major issues we faced was that staff were always on the move and needed to be contactable at any time,’ explains Nicholas Wilde, IT and finance director at Stamco.
Business needs
The initial set-up was more difficult than expected as it was a new technology for both Stamco and the company installing it, but as Wilde explains, ‘we now run VoIP over several different sites. It’s all about increased communication.’
His one word of advice is to ensure you have a decent leased line between sites or, if you are using ADSL, make sure you have sufficient bandwidth.
‘One site we have does not support enough bandwidth and calls either tend to drop out or they are not of good enough quality,’ remarks Wilde.
Contacts
- www.voip-calculator.com: Free resources and an interactive forum on VoIP.
- www.telecomsadvice.org.uk: Costs and information on telecoms and other technologies.
- www.dti.gov.uk/bestpractice: Advice on getting started with VoIP.
- www.sipcenter.com: Find out more about SIP, an emerging IP telephony standard.
