Recently, another technology has emerged that holds the promise of revolutionizing telephony once again. It is known as Voice over Internet Protocol or VoIP. VoIP works by transmitting the data generated by the human voice over an Internet connection. Effectively, internet users now have the option to converse with each other, via the internet, and in real-time. This can happen,regardless of the distance that separates all parties. This means that telephony has taken a huge step forward and now has the potential to integrate the Internet as well as regular communications into a new medium.

The potential business applications are many, and businesses across the country have started to implement VoIP technology. With VoIP, a company can increase productivity and cut back on phone bill costs. Since this is the at the core of growth for most companies, many businesses have taken to VoIP with enthusiasm.

VoIP can be used in three ways for communication. The first is to use a device known as an analogue telephone adapter or ATA. The VoIP system will take the analogue voice signals and convert them into digital format so that the conversation can be transferred via an Internet router or modem. The second is simply using a computer program known as a softphone to call anyone who has the same program. Thirdly, an IP (Internet Protocol) phone can be connected to the VoIP system and thus by-pass the conversion process altogether as the IP Phone is built to output a digital signal.

IP phones work exactly like regular phones, except that instead of a regular phone connector, they have an Ethernet connector. Thus via a router or modem, the IP phone can be directly connected to the internet. These phones have taken the market by storm, and recent models even allows users to communicate by connecting to the Internet wirelessly. Internet cafés have taken advantage of this function and most provide headsets that can be used as IP phones. Since popular softphone programs can be installed directly on regular phones, this means that free softphone programs allow users of wireless IP phones to talk for free virtually anywhere.

With such powerful technology now widely available, businesses have the opportunity to reduce their costs by a significant margin. Reduced costs means reduced end user prices and thus a more competitive stance leading to more business and revenue. The world is in for a huge change in the way personal and professional communications work due to VoIP. Imagine people using their laptop computers to communicate with clients, friends and loved ones. Incoming callers will be able to ring multiple phones at once to increase the chances of the receiver answering. This is what VoIP has in store for us.

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