VOIP is not free

While the legalising of voice over Internet Protocol (VOIP) has had a huge positive impact on the local telecommunications industry and many businesses in SA, there is a general misconception that if a business has an existing data or Diginet line, then the provisioning of VOIP is free.

This is not the case. VOIP isn`t free, and although this technology will significantly curb telecommunication costs, it is not a panacea for high telecommunication costs.

In simple terms, VOIP uses data lines to transfer voice calls, and that is where the cost comes in because the use of existing data lines isn`t free. Neither is the bandwidth used to carry the voice component. High bandwidth costs make for an even more complex equation where factors such as lower call costs are counteracted by the high cost of bandwidth.

The problem is exacerbated by the fact that by switching to VOIP, voice as well as data communication becomes reliant on bandwidth capacity and performance.

It is imperative to be well informed about the amount of bandwidth required and the associated costs involved in running a VOIP solution within a business.

Jaco Voigt, operations director, DataPro Group.

If VOIP isn`t free, what about solutions such as Skype? Although these Internet applications offer "free" calls, they definitely don`t offer the flexibility and reliability necessary to make mission-critical business calls. As with any other purchasing decision, there is a clear trade-off between price and quality. You literally get what you pay for.

The first major concern with this type of service is the quality of the voice calls. With applications such as Skype or MSN, the quality isn`t guaranteed. Besides lower quality, other inhibiting factors include the dependence of the communicating parties on the application being installed on both sides, the applications` reliance on "hot phones" thus requiring connection via a PC, and these applications can`t be routed via your company switchboard.

Telephone calls form the core of most business communication and are essential for the day-to-day running of all activities. It should therefore be apparent that although Skype may be adequate for lower-end domestic use, it is not appropriate for use in business.

It is imperative to be well informed about the amount of bandwidth required and the associated costs involved in running a VOIP solution within a business in order to do so effectively and efficiently. Businesses need to ensure they have enough bandwidth available for data and voice to avoid degradation of service.

In other words, businesses need to be aware of all the costs involved and not only focus on the savings promised by VOIP solutions. The execution of VOIP requires carefully planned and budgeted bandwidth as well as the provisioning for increased bandwidth costs as telecommunication needs grow. It also needs to be borne in mind that in most cases, a VOIP solution will require upfront capital costs for installation, routing hardware, possible network and PABX upgrades, in possibly new handsets.

VOIP isn`t free, but neither is any other critically important business tool. The key is to find a solution that addresses requirements, reduces overall telecommunication costs and provides a stable, clear quality, reliable tool that will improve communication and ultimately benefit business processes.