Internet Phone Provides Risky Alternative

Businesses are always looking for ways to improve the bottom line and new technologies are often an answer. One answer could be VoIP.
Voice-over Internet Protocol, or VoIP, is a growing technology, and many businesses are looking to it for cost savings.
“We think it’s clearly a revolutionary product,” said Ted Wagnon, AT&T spokesman, who offices out of Little Rock.
For those without an IT degree, VoIP is an Internet-based telephone service. People can place any number of phone calls for one flat, monthly access charge. No special phone is required but users are required to have access to high-speed Internet.
Another feature is portability. A savvy businessperson can log onto a VoIP network with a computer or office phone, connect via wi-fi on a laptop and a headset or use a VoIP mobile phone.
With the advantages of VoIP, the growth rate has been exceptional. The latest count by research firm TeleGeography placed the number of VoIP subscribers at 8.2 million, double 2005’s number.
While some foresee VoIP replacing traditional phone service, it may be a few years before service quality will allow that to happen. There are a few drawbacks.
The main thorn in VoIP’s side has been its reliance on electricity. Whereas traditional phone service provides a phone with electrical current through the phone line, VoIP will not work without a power supply.
If severe weather or a blown transformer causes a blackout, a company could be losing customers.
“We argue that just for piece of mind as a revenue generating enterprise you want to be sure your customers can reach you, because your block is without electricity and the rest of the world is humming along,” said Jim Smith, Verizon media relations.
Smith said Verizon’s take on VoIP is one of compromise.
“The pitfalls are that if you make that you’re main line, you’re putting your business at risk,” he said.
For example, a company can cut costs on interoffice calls with a dedicated VoIP line, but Smith urges businesses to keep a traditional phone line in place.
“Our point of view on Voice-over Internet service is that it is a great additional service,” he said.
One problem with early VoIP was 911 response, as it could not directly connect to 911 networks. That issue has been mitigated since the FCC stepped in and, in 2005, the basis was laid for enhanced 911 service.
E911 can use geographic tracking, connecting them with the nearest public safety answering point. Before, if a person using VoIP is away from home or the office, 911 could not track their call, but now that is possible. Wagnon said people should ask about E911 service when shopping for VoIP providers.
Another potential issue is quality. VoIP often runs on dedicated networks, but it can run just as simply over the public Internet. In cases where a company is sharing the pipe with public Internet users, the result can be sub-par sound quality.
“That’s not the kind of impression that most businesses want to leave with their customers,” Smith said.
While people may be hesitant to leap from the tried-and-true landline phone services to the Internet-based services, VoIP may be a good investment for some businesses.