VoIP Benefits, As Compared To Traditional Telephony

So now we know a whole lot more about Voice Over IP. But what, in summary, are the VoIP benefits when compared to traditional circuit switching telephony?

Below is a guide to the key VoIP benefits that can be used within any business case you are using for a VoIP deployment :

Advantages of VoIP :

1. Lower Operating Costs - a VoIP network requires considerably less space, human resource and operating capacity than a traditional PSTN network. For example, a PSTN network requires a large number of engineers to manage, programme and run all elements of the network, from the physical switches, to the power supply, to the bandwidth itself.

In a VoIP network, the switch itself is often a fraction of the size its PSTN counter-part, is more automated, and considerably less burdensome to run. This is one of the key VoIP benefits, in that operators deploying VoIP networks find over time that operating costs fall considerably, and these savings help justify investment. This is highlighted as one of the key advantages of VoIP in any business case.

2. Lower costs per minute - to both service providers and subsequently to enterprises and consumers, the cost per minute of VoIP traffic can be considerably less. It is true that this is not always the case. For example, in markets such as much of Continental Europe, prices for termination on the PSTN are already so low that an alternative VoIP market has not developed.

However, in emerging markets such as much of Africa, Indian Sub-continent and Central/South America, IP bandwidth and competitiveness in the sector has meant prices have been driven lower by the emergence of VoIP, being one of the major VoIP benefits to the consumer. Traditional PSTN operators have been forced to lower their prices to compete, but it is VoIP that is leading these markets.

3. Network costs - for enterprise users, consolidating voice and data networks may mean they need order fewer circuits from the incumbent operator. Therefore, costs are driven down.

4. Packet Telephony Call Centres – these allow for much greater flexibility within an enterprise, in that their call centers can be dispersed across many different locations. For example, call centre staff could work from home and still provide the same type of service as they would if they were sitting in a call centre. The building costs, costs of putting a phone at each desk and purchasing the required infrastructure can therefore be dramatically cut. To many companies this can be one of the major VoIP benefits when compared to their traditional telephony service.

5. For service providers, VoIP gives access to geographies that would previously have been difficult to access. For example, in Bangladesh, most international calls now enter the country via IP bandwidth rather than traditional switched circuits. The cost of expanding switched circuits is high compared to adding new IP bandwidth, which can also be used for other media than voice.

6. Flexibility for the consumer – by using a SIP-based service, the consumer can use their mobile device, eg notebook, to make a VoIP call from anywhere and by any means they can connect to the Internet.

7. Consumers have the ability to set up conferencing on VoIP fairly easily. Video-conferencing is also an option, especially where the user is operating on broadband, where video-streaming is effective.

8. Consumers pay no line rental when using VoIP. Instead, calls are made over their existing IP connection, such as over broadband. Therefore, they receive bundled services and benefit from reduced costs.

The above is a summary of the main VoIP benefits, when compared to a traditional TDM telephony service. In order to continue the journey, use the menu below to navigate back to VoIP Tutorials for the next section.

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