Hosted VoIP Solutions

What is Hosted VoIP ?

A form of business VoIP services where the VoIP equipment, servers and services are hosted by the VoIP provider, which manages calls and routes them to and from the subscriber’s existing telephony system and equipment.  Hosted VoIP is also frequently referred to as managed VoIP and can save companies from the potentially expensive costs of having to invest in VoIP equipment and manage the system.

As with all VoIP (or Internet telephony) solutions, hosted VoIP services use packet-switched telephony to transmit calls over the Internet as opposed to the circuit-switched telephony used by the traditional Public Switched Telephone Network (PSTN), although in some hosted VoIP cases calls from the subscriber are routed over the PSTN to the hosted VoIP PBX system.

How VoIP Works

To understand how VoIP, short for Voice over Internet Protocol, works, it’s helpful to compare it to how conventional phone calls operate. When you place a “regular” phone call using the Public Switched Telephone Network (PSTN), also known as Plain Old Telephone Service (POTS) you use what’s called circuit-switched telephony. This system works by setting up a dedicated channel (or circuit) between two points for the duration of the call. These telephony systems are based on copper wires carrying analogue voice data over the dedicated circuits.

This is in contrast to newer Internet telephony networks based on digital technologies. VoIP, in contrast to PSTN, uses what is called packet-switched telephony. Using this system, the voice information travels to its destination in countless individual network packets across the Internet. This type of communication presents special TCP/IP challenges because the Internet wasn’t really designed for the kind of real-time communication a phone call represents.

Individual packets may — and almost always do — take different paths to the same place. It’s not enough to simply get VoIP packets to their destination. They must arrive through a fairly narrow time window and be assembled in the correct order to be intelligible to the recipient. VoIP employs encoding schemes and compression technology (see G.7xx for more information) to reduce the size of the voice packets so they can be transmitted more efficiently.

 

PSTN Versus VoIP: A Feature Comparison

PSTN

VoIP

  • Dedicated Lines
  • Each line is 64kbps (in each direction)
  • Features such as call waiting, Caller ID and so on are usually available at an extra cost
  • Can be upgraded or expanded with new equipment and line provisioning
  • Long distance is usually per minute or bundled minute subscription
  • Hardwired landline phones (those without an adapter) usually remain active during power outage
  • When placing a 911 call it can be traced to your location
  • All channels carried over one Internet connection
  • Compression can result in 10kbps (in each direction)
  • Features such as call waiting, Caller ID and so on are usually included free with service
  • Upgrades usually requires only bandwidth and software upgrades
  • Long distance is often included in regular monthly price
  • Lose power, lose phone service without power backup in place
  • 911 emergency calls cannot always be traced to a specific geographic location

 

Contact us to discuss how VoIP can help your business