In the late 1980s, the mobile telephony system in Europe was based exclusively on the ETACS network created by various telephone companies and consisting of analog radio links operating at the frequency of 800 MHz. Although at the time it was considered to be the start of a revolution, few would have imagined how quickly the phenomenon would burgeon both into a fad and into a system for keeping close track of individuals.
The weak points of the ETACS network were the lack of coverage abroad, continuing interference with other users, and the ease of cloning. It often happened that some unknown party obtained possession of the serial number of a mobile device, combined it with a new account to elude the NSP and generated telephone traffic paid for by the unwitting victim. In the mid-1990s, the GSM network was introduced. It operated at a frequency of 900 MHz and later 1.8 GHz. GSM was introduced precisely to eliminate once and for all the problem of interference among radio links and, being digital, to make conversations more secure.
The next revolution in mobile network technology came about in 2003 when the Japanese colossus Hutchinson Whampoa entered the European market with H3G, the third generation of mobile telephony. The telephone now became a video-telephone, using the 2.1 GHz band.
How does telephony work?
A workplace frontend for a Telephony System
A manufacturer was supplying server software for distributed telephony systems. They had a call-centre application with a rather poor interface. We worked as software architects and developers. The task was both to design a highly usable frontend for call-centre applications and an architecture for these software components that would fit into the overall architecture of the telephony system. We introduced the concept of different workplace types and design metaphors. Although the general characteristics of tools, materials, and automata were applicable to this domain, we found it useful to refine some of these design metaphors. So we proposed the conceptual patterns of adjustment tool, probe, and technical automaton. This led to an improved usage model, as the users could understand potential delays and missing reactions when they tried to adjust the actual telephone switches encapsulated in a technical automaton with a tool. The new call-centre software was implemented using these patterns. It was a success from the very beginning, as a network of distributed call-centres managed the nationwide marketing campaign of one of the biggest German IPOs in years without major problems.
Telephony has been with us for over a century, and we have been awaiting the dawn of a new age of multimedia communications for many years. That wait is finally over. IMS, the IP Multimedia Subsystem defined by 3GPP, is set to revolutionize the communications world. Originally defined almost a decade ago, we are finally seeing a broader deployment from fixed, and cable operators and of course mobile operators spurred on by the commercial launch of LTE and by initiatives such as the GSMA’s own Rich Communication Suite (RCS). Not only will RCS provide a wealth of interoperable multimedia capabilities for person-to-person communication across device and network boundaries, but it will also provide a range of new APIs to developers, to embed those capabilities into their own applications.
Telephony is a term denoting the technology that allows people to have long-distance voice communication. It comes from the word ‘telephone’ which, in turn, is derived from the two Greek words “tele,” which means far, and “phone,” which means speak, hence the idea of speaking from afar. The term’s scope has been broadened with the advent of new communication technologies. In its broadest sense, the terms encompass phone communication, Internet calling, mobile communication, faxing, voicemail and even video conferencing. It is finally challenging to draw a clear line delimiting what telephony is and what isn’t.
The initial idea that telephony returns to is the POTS (plain old telephone service), technically called the PSTN (public switched telephone network). This system is being fiercely challenged by and to a great extent yielding to Voice over IP (VoIP) technology, which is also commonly referred to as IP Telephony and Internet Telephony.
Voice Over IP (VoIP) and Internet Telephony
These two terms are used interchangeably in most cases, but technically speaking, they are not quite the same thing. The three terms that personate one another are Voice over IP, IP Telephony, and Internet Telephony. They all refer to the channelling of voice calls and voice data through IP networks, namely LANs and the internet. This way, existing facilities and resources that are already used for data transmission are harnessed, thereby eliminating the cost of expensive line dedication as is the case with the PSTN. The main advantage that VoIP brings to users is considerable cost-cutting. Calls are also often free.
This, along with the numerous advantages that VoIP brings has caused the latter to become a major technological element that has gained worldwide popularity and claimed the lion’s share of the telephony market. The term Computer Telephony has emerged with the advent of softphones, which are applications installed on a computer, mimicking a phone, using VoIP services on the internet. Computer telephony has become very popular because most people use it for free.
Mobile Telephony
Who doesn’t carry telephony in their pocket nowadays? Mobile phones and handsets normally use mobile networks using the GSM (cellular) technology to allow you to make calls on the move. GSM calling is rather expensive, but VoIP has also invaded mobile phones, smartphones, pocket PCs and other handsets, allowing mobile users to make very cheap and sometimes free local and international calls. With mobile VoIP, Wi-Fi, 3G, 4G, and newer technologies allow users to make completely free calls, even to overseas contacts.
What is IP Telephony?
IP telephony (Internet Protocol telephony) is a term used to describe technologies that use a variety of protocols to exchange voice, fax, and other forms of information, traditionally carried over the Public Switched Telephone Network (PSTN). The call travels in the form of packets, over a Local Area Network (LAN), or the internet, avoiding PSTN tolls.
Starting in the mid, the too late 1990s, the internet and the TCP/IP protocol began to drive the telephone and communications industry to change. The Internet Protocol became transport for almost all data communications. Today, all communication carriers are using an IP infrastructure for a part, or for all of its voice services. Most companies have already switched from PSTN to using VoIP (Voice over IP) for their internal voice communications or have plans to implement it as part of their Unified Communications solution.
IP Telephony refers to the ‘next generation’ of telephone systems. Also known as an IP-PBX, these systems allow you to use your computer network for voice and video communication instead of a separate set of cables for your phones. By integrating your voice communication with your computer network, you can see immediate benefits. How? Only by getting better and far more efficient with all your communications – both internally and with clients.
You will save loads of time with little things like pressing a button on your keyboard to call a client, instead of picking up the handset and pressing buttons. This may not sound like much, but it really does make a difference. When you can use your keyboard and mouse to manage your real-time communications (voice/video/instant messaging) in a business environment, the efficiencies and enjoyment (yes, enjoyment) of communication become painfully obvious. Instant message with a colleague when they are on the phone to get immediate and important information because you can see they are ‘on the phone’ status, you save incredible amounts of time (rather than tapping your foot at their office doorway waiting for them to finish a call).
Serve your clients BETTER and FASTER than you ever could before. Telecommuting or working remotely (and connecting multiple offices as one) becomes so much simpler to achieve – simply log in to your computer and go! The possibilities are nearly endless.
Why Companies are Adopting an IP Telephony System?
As the market share and usability of POTS continues to decline, you can put your enterprise and its business processes ahead of the curve by exploring the benefits of adopting an IP Telephony system.
Phones as a Service
Unlike the hardwired configuration of a POTS based PBX with T-1 line integration, IP telephony systems are essentially SaaS deployments. This allows you to integrate your phone system with other powerful business applications such as customer databases, integrated email, and even SMS operations. IP technology gives employees and customers the tools they need to interact more efficiently with each other, leading to greater business outcomes and improved customer satisfaction.
Mobility and Scalability
If remote offices are a consideration for your enterprise, IP telephony solutions are a must have. Instead of installing multiple physical phone systems, you can simply log in to your system’s web interface and add another line. Without the need for telephone hardware, your remote offices can go fully mobile in a matter of seconds. Enterprises can scale their communications up and down with an IP solution.
Integration with Current Infrastructure
IP telephone systems can also easily integrate with existing legacy systems and hardware, including fax machines, alarms, and credit card readers. Because IP telephones integrate with your business applications, so will your legacy systems. When faxes are required, you can send and receive your faxes via email. When you need to transmit credit card data, you’ll see improved speeds through a network-connected phone system. IP systems keep almost everything the same while increasing the functionality and productivity within your key business processes.
The Transmission of Multimedia Content
IP telephone systems offer more than voice-to-voice connections. In fact, IP telephone systems are equipped to handle conference calls, video calls, and other meetings where the simultaneous streaming of audio and video is crucial. POTS and legacy PBX systems cannot handle the modern needs of global enterprises that conduct business across state and country borders. A comprehensive IP telephone system eliminates software and hardware redundancy by consolidating all these conferencing necessities into one solution.
Good on Data, Great on Bandwidth
One of the biggest questions enterprises have about adopting an IP telephony system is how it will impact their data usage and bandwidth. And for a good reason. A study by the University of West showed that 35% to 50% of a phone conversation is spent in silence. This eats up precious bandwidth that other business units may need. However, modern IP systems use VAD, or voice activation detection, to compress silent data as much as possible. During times of silence, your IP system is looking out for total bandwidth allocation, making voice-to-voice calls efficient uses of data.
Significantly Lower Costs
Everything about upgrading to IP telephony solution boils down to lower costs.
Installation and maintenance of an IP system can be done through in-house network engineers, or through a business partner if you don’t want the responsibility to hire and manage this. IP systems don’t require proprietary hardware or feature updates, either. Traditional T-1 lines need enterprise organizations to pay for a channel, even when it’s not in use. With SIP (session initiation protocol) trunking, you only pay for the data you use. And it’s through SIP trunking that you gain audio, video, and private teleconferencing features without needing to pay for extra channels.
You’ll also be able to make international and long-distance phone calls at a fraction of the price associated with POTS usage. In fact, long-distance and international phone calls account for almost half the estimated costs for enterprises currently using VoIP.
IP Telephony in Business
The benefits of IP telephony in corporate environments are numerous but are mostly narrowed down to cost considerations related to infrastructure and monthly telco bills. Modern VoIP PBX solutions, like 3CX, allow for companies to run the system on existing, non-proprietary hardware as well as low-cost machines such as Mini-PCs. Traditional phone systems and proprietary VoIP solutions require the extensive implementation of closed architectures, which can cost hundreds of thousands of dollars and are much more difficult to manage, configure and maintain. Open standards IP telephony systems are also much easier and more cost-effective to scale.
The use of VoIP and SIP trunk service providers means that phone bills are greatly reduced. This is because companies can easily connect branches in other cities and countries, making calls within the company free. Long-distance charges are slashed, and overall call rates are much cheaper
Business telephone systems are now able to offer much more to companies that standard telephone calls. IP telephony has ushered in the development of unified communications solutions which can provide a complete communications package all in one, to be run over a single network and on one platform. This means that businesses can easily manage calls, use video conferencing, collaborate, chat and more through a single service. These solutions have also allowed users to make VoIP telephone calls through their smartphones and computers, either with the use of apps or web clients.
What are the advantages of VoIP?
As we explain in detail on our How VoIP Works page, the most notable benefits that businesses experience when they switch to VoIP phone service include cost savings, greater mobility and flexibility, and increased employee productivity.
Since the advent of IP telephony, more and more people and companies are switching from a traditional telephone system or POTS as it is called for Plain Old Telephone System, to VoIP telephony. The reason why there is this continuous increase of VoIP telephony users these days is that it offers a lot of advantages and benefits to the user. The advantages and benefits of VoIP telephony for outweigh the efforts needed to switch. IP or Internet Protocol telephony relies on an internet connection to make calls, send messages and make audio and video conference calls anywhere in the world. Today, every business has an Internet connection. VoIP uses this as the backbone to offer fantastic communication facilities.
Let’s briefly discuss each of these VoIP advantages:
VoIP costs less.
What initially attracts most businesses to VoIP is its low cost relative to the cost of traditional phone services.
The phone bill from an old-school telecom provider typically includes high monthly fees for each physical phone line as well as per-minute charges that can become expensive for a business that needs to regularly make long-distance and international calls. VoIP service, by contrast, is typically much less expensive.
This is because, instead of sending voice calls across the physical wires of the telephone network as traditional phone service does, VoIP simply converts a caller’s voice into data packets and sends that data over the internet to the receiver’s phone. This is how VoIP can transmit a phone call across long distances for the same rates as it handles a local call to cut back the cost of making international calls.
Your employees can use their VoIP business lines anywhere.
Another advantage of VoIP, one that also attracts small and growing businesses, is that it allows employees to take and make calls on their “work” phone numbers from anywhere, using any internet-enabled device. This could include an office phone (if the employee has a physical phone in the office), a desktop computer, a laptop, or even a personal smartphone.
To a company with an on-the-go staff or with employees who work from home, this added mobility offers a tremendous advantage. Whereas a traditional landline-based office phone requires an employee to be physically in the office to receive or place a call through their business number, a VoIP phone service allows that employee to make or take that same call from anywhere, on any device. The caller at the other end will see only that the employee is talking to them from their business line.
VoIP phone service makes it easy to add lines, change locations, and scale your phone service as your business grows.
Signing up for a standard business phone service usually means setting up onsite hardware: physical phones, copper wires, and some sort of appliance to manage this phone infrastructure, such as a PBX (Private Branch Exchange).
This type of onsite physical solution limits how many phone lines your company can add (before you need to pay for more physical lines), requires you to pay for the installation of wiring for each phone line, and also means that you’ll have to rebuild the entire system at a new location if you move to a new office.
With a VoIP solution, you won’t have any of these limitations. VoIP is managed in the cloud so that you won’t need copper wires, and you won’t have to maintain an onsite PBX or any physical hardware to manage your company’s phone infrastructure. You won’t even need the physical desk phones for your employees unless you want to have them. (With a VoIP service, you can use physical phones to make VoIP-enabled calls if you choose.)
Also, because your VoIP service is limited only by bandwidth—not by an arbitrary number of physical phone lines—you can add as many new business numbers as you want, anytime. This means VoIP can easily scale up to meet the needs of your growing company.
VoIP service helps your staff become more productive.
Let’s say your company employs an in-house sales team, and these sales reps need to spend a lot of time in the field while also needing to be available for important business calls. Perhaps they need business faxing as well.
If you have a traditional business phone solution, your reps will either have to spend more time in the office (waiting by the phone) than they’d prefer, or they’ll have to use their personal mobile numbers for work. Alternatively, your company will have to pay for mobile phones for each rep.
Also, if your reps need to send or receive contracts, purchase orders, or other documents via fax, they’ll either have to run back to your office to deal with those faxes or hunt for an office supply store while they’re on the road and hope it has fax service.
Now let’s assume that instead of a standard business phone system, you’re using VoIP. Your sales reps can always be available for important business calls—even while they’re on the road—because they can easily take those calls on any internet-enabled device. The caller will see only your rep’s business phone number, even if your rep answers that call on a smartphone, a laptop, or any other device equipped with your VoIP provider’s app.
Also, your reps can send and receive—and even sign—faxes electronically, from anywhere, using a VoIP service like RingCentral. This means if you have a sales rep in the field visiting prospects who also need to review an incoming fax contract, then sign and fax it back to close the deal, that rep won’t need to waste time running back to the office. Your rep can view the fax electronically using the app, drop in a digital signature, and send the fax back—all without printing it out or going anywhere near an actual fax machine.