The increased needs for voice and data communication in small and larger businesses have resulted in finding new methods for simultaneously communicating these two forms of information. The technology which dominates to meet those needs is Voice over IP – voice over Internet Protocol TCP / IP.
The Voice over IP (VoIP) service uses the Internet protocol (IP) to carry phone conversations, converting analogue voice into IP packets. The current model focuses on voice telecommunications and related services in wireless and wired telephony. The Voice over IP service is part of real time transmission services, which tends to replace the conventional telephone technology, thus affecting the prices of telephone services worldwide. The principle upon which the operation of voice over IP works is that a customer pays a certain amount to join the network and then pays according to time usage and the equipment used (based on distance).
The frequency required by the IP technology to transmit data is at least six times lower than that of traditional telecommunications networks that are now used by most subscribers worldwide. This significant difference makes calls via VoIP clearly more economical, and in many cases the call over the Internet can cost up to 90% cheaper than that through the traditional telecommunications network.
Many European and US telecommunications companies have begun to invest strongly in Voice over IP. By 2010 all communication needs of these companies (voice, fax, data transfer, video conferencing, etc.) will be provided only over IP.
The new service is widely used in enterprises as well. Studies estimated that in the next years the development of voice over IP will be fast and the traffic volume will be higher than that in traditional telephony. Suppliers of telecommunications equipment have started to include in their products support for the IP protocol and all equipment suppliers include IP voice as one of the key features of their products.