Imagine phones (that look like regular phones as we-know-it-today) connecting to the Internet via an Ethernet jack (similar to a PC) instead of the phone plug on the wall. These are called IP-based phones. These phones do not use analog phone lines - instead they get connected to the Internet. One would pick up the receiver and make a phone call just as it is done today and VoIP converts the human voice into IP packets (data similar to email data) and pushes it out through the Internet to the phone switch where it is terminated. In a nut shell, VoIP digitalizes voice into data packets, sending them and reconverting them back into voice at destination.

What are the benefits of VoIP and why you should consider it? To compete effectively in the eWorld, a decent businesses infrastructure MUST HAVE two essential components: A High-speed Internet connection and a sophisticated phone system.

Up until now, to build a solid infrastructure, small businesses had to spend lots of money for having multiple phone lines, perhaps an 800 line, fax line, credit card machine, to name a few. These days the ONLY essential component to worry about is having a reliable high-speed Internet connection. Connectivity can be addressed with either cable or DSL service (typically $250 per month) through cable providers such as Comcast, RCN, etc. and DSL can be provided through the Verizons of the world. The good news is that with the arrival of VoIP, there is no need to pay a dime for multiple phone lines, any phone system (PBX), any local/long distance calls, phone maintenance, etc. At 30% to 50% less than the cost of a typical phone system, a VoIP system will provide a more sophisticated system with increased functionality than any analog phone system. It offers an enterprise-level system that was affordable ONLY by fortune 500 companies. Now small businesses can compete like big corporations at a fraction of the cost!

Small businesses are beginning to realize that IP-based phone system streamlines their communications needs and their call flow in ways that was not possible a year ago. As a result they can improve the customer experience and combined with wireless IP communications, employees can become completely mobile. The beauty of it is that IP enables the phone to be anywhere