VoIP benefits

VoIP decreases the cost of making telephone calls and opens up new applications and services.

Lower Costs

• Network Efficiency: With circuit-switched calls, ports in both the originating and receiving switches are attached up for the duration of a call whereas VoIP with its virtual circuits makes more efficient use of available network bandwidth. The integration of voice and data effectively fills up the data communications channels powerfully thus providing bandwidth consolidation.

• Infrastructure Investment Reduction: VoIP takes advantage of the similar equipment that is driving the Internet. The hardware and protocols for VOIP are largely off-the-shelf, interchangeable and developed by several vendors.

• Lowered Cost Of Expansion: VoIP is more scalable and traditional telephone networks are geographically limited by their circuit switches, with a switch required for each service area. With VoIP technology, a softswitch can be installed at the regional level, allowing multiple markets to use it, with only limited equipment required locally.

• Toll Charges Reduction: VoIP is used by companies to reduce call charges between their offices, by using their data network to carry inter-office calls. They may also use VoIP to minimize the costs of calls outside the company, by carrying them to the nearest point on their network before handing them off to the PSTN. This gives them an alternative to the PSTN that can continue to develop and be scaled to fit their needs.

• Network Simplification and consolidation: One network is easier to handle than two. Moreover since VoIP exchange is based on software rather than hardware, it is easier to modify, configure and maintain. For Enterprise PBX, for instance, it effects a substantial improvement in move/add/change of telephony circuits and substantial reduction in staffing and administration costs.