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Voice over IP, or VOIP as it is sometimes referred to, is a new and very cost effective alternative to traditional telephone lines. Compared to the alternative method of providing business telephony namely ISDN which is expensive to install and maintain and these days quite old technology.
Typical installation cost for ISDN is about £299 with an ongoing rental of £35 a month for two lines. And that's without call costs which at BTs standard rate can be very expensive.
The standard analogue lines again are quite expensive being £120 for a typical installation with a line rental of £12.50 per month per line and call charges at BTs standard rate.
The other main disadvantage of traditional telephony can also be the lead time; it can take as much as ten days sometimes longer for an installation.
The main advantages of using VOIP lines are they are much cheaper to install and maintain with a typical line rental of £3 per line per month per line, They can be installed within a few days and probably the most important the call charges are considerably cheaper than standard BT. And for larger companies with multiple sites calls between VOIP lines are free.
How does it work? VOIP lines are virtual using your broadband connection and are sent over the internet. Effectively the voice conversation is converted into digital packets and sent over the net at no cost. The only time charges are incurred is at the other end when the conversation leaves the internet and joins the local phone network, and you pay the charges at local rate wherever in the world the call is routed too. As the internet has no geographical boundaries it is also possible to have virtual phone numbers, again anywhere in the world. For example your company could have a New York telephone number which your American customers could call at local rates but the phone would ring in your office in the UK.
By Ian Mucksworthy
ResQ Computers
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