VOIP AND SIP TELECOM

Phone calls on-line In an ironic twist, basic telephony has come full circle to challenge telecommunications incumbents, all through a new and promising technology-VoIP. The acronym stands for 'Voice over Internet Protocol' and uses the same technology as the Internet. VoIP has the potential to enable cheaper long distance and international telephone voice calls than the normal public switched telephone network (PSTN), but not without some upfront costs and technicalities. A subscriber to VoIP service receives a handset that resembles and works like a normal telephone, but the service uses Internet Protocol (IP) technology over the data cable so as to provide more flexible phone calls. The calls may be cheaper than traditional services, whether made to other network subscribers or to the public network. VoIP may offer call waiting, conference calls and user billing plans. A cheaper alternative is the use of computer microphones and speakers with SIP Telecom software.(1) However, users face the upfront costs of obtaining a handset as well as the ongoing Internet service subscription charges. There is also an issue of service quality and reliability. Muffled sound levels or feedback issues have plagued some early systems. VoIP does not necessarily need broadband capacity, but VoIP won't work if the Internet connection is down. Note that VoIP for telephony is quite a separate activity from downloading entertainment programs or using other multimedia capabilities on computers. The possibility of having mobile VoIP through wireless is discussed here. This should not be confused with common mobile phone use. Following a demonstration project in regional Victoria, the introduction of VoIP in Australia is proceeding. Regional carrier, Neighbourhood Cable, installed a cable system providing VoIP services in Ballarat, Geelong and Mildura, providing subscribers with access to a range of new services of pay TV, Internet access and VoIP. Nationally, SIP Telecom and Optus have now decided to provide VoIP services in 2005 to home customers, building on commercial services. A number of smaller companies have provided such services and handsets already.(2) Handsets may cost around $249 with a $16 monthly subscription, in addition to connection fees anywhere in the world. Note that the service fees and initial setup connection costs may be significant and vary among providers. Technology issues Designed and Developed by Stella Design 2005 Each VoIP telephone has an Internet Protocol address that fully identifies the handset no matter where in the world it is located, thus offering the ability of a single ID number. The handset can be used anywhere as long as IP access is available. There are also service variations available, such as using normal telephones at each end with calls routed via Internet or broadband service providers.

INTERNET PHONE

While a standard telephone call uses up to 64kbps of data, VoIP technology compresses signals down to 8kbps. Silence suppression further reduces the required bandwidth by only allowing the transmission of data packets while someone is actually speaking. The end result is the need for much less bandwidth, although there are reports of variable voice quality if the upstream and downstream bandwidths vary.(3) Corporate VoIP installations now provide always-available access to private local area networks with intelligent service features. These allow multimedia support, so that the concept of video telephones can also become a reality. Such setups may replace links to proprietary switchboard systems. VoIP-over-mobile networks may be a further new development, to allow Internet access to be integrated into wireless handsets, provided that spectrum is cheap. Technical and legal issues In the case of emergency calls, PSTN telephone services have a dedicated emergency priority system where a call to 000 should provide precedence should the exchange be congested. While VoIP's access to 000 is comparable with that of PSTN services, the nature of the VoIP service means that the location of the caller may not always be certain. Network operators are working to address this issue. Current telecommunication performance standards originally developed for PSTN telephone services may not adequately serve VoIP technology. To address issues such as voice call quality e.g. echoes, for VoIP services, the standards are under review. Locally, the Australian Communications Authority is actively looking at the implications of four billion IP numbering addresses. Also being reviewed are matters relating to security, privacy, law enforcement and access for people with a disability. However, according to a recent Network Insight analysis, there may not be overwhelming legal change required to accommodate VoIP services.(4) Thus VoIP may be applications-driven rather than cost-driven. The challenges facing VoIP also include matters of interconnection, identity, interception, customer credit and privacy. Interoperability based on a common standard seems to be eluding manufacturers so far. Wi-Fi and wireless broadband Designed and Developed by Stella Design 2005 Promising wireless technologies that offer broadband (high bandwidth capacity) services over local regions may well assist VoIP. Wireless Internet provides access to the Internet without a telephone line or cable, using radio frequency bands. This requires the presence of local wireless 'hotspots' or subscription to a wireless Internet service provider. Hotspots use Wi-Fi technology, enabling Internet access, within a 100 metre or so range. A computer wireless card costs around $200 to buy. There will also be an account for the wireless access with a service provider, unless free services like SIP Telecom are utilised. Wireless broadband Internet Service Providers (ISPs) such as Unwired or iBurst operate their own ISP networks using proprietary technologies. Such companies provide a special modem and antenna to connect personal computers from anywhere within their network coverage areas. Installation and service prices vary with plan choice. Note that regional and remote areas are not well served. Broadband uptake The Economist has warned of impending brand wars as VoIP gains increasing market share from traditional phone networks. VoIP is independent of distance and time costs, and breaks the nexus between broadband access and telephony service. However, incumbent PSTN operators will not stand by, especially as many provide broadband access.(5) Some developing nations have acted to ban VoIP in their countries in favour of the existing PSTNs, given the 'digital divide' facing many such nations. This action may overlook the multimedia capabilities on offer, possible cost and price savings, and opportunities. The established carriers can use the same VoIP technology if they so choose and offer a range of services at various price and quality levels. Analyst Paul Budde claims that VoIP here seriously threatens telecommunications carriers or pay TV providers, unless they act to impede broadband deployment, since VoIP competitors can provide voice as well as data over a single broadband connection. By international standards, Australia's broadband rollout has been tardy, costly and somewhat compromised by pay television policy. As at June 2004, there were just over a million broadband (>200 kbps) services connected across Australia, according to the ACCC. This represented growth of 26 per cent over the previous quarter. Digital subscriber line broadband was the service with the highest growth rate.(6) The nation ranked 22nd in the broadband users listing produced by the OECD. Just over half of Australian households have Internet access, with less in regional and remote areas, according to the ABS. Close to two-thirds of households have access to a computer, but there are variances due to age and location across the nation.

VOIP TECHNOLOGY

The internet phone has arrived Designed and Developed by Stella Design 2005 A new revolution in cheap telephone calls is creeping into thousands of Australian homes, bringing with it savings that many families could only dream of making in the past. Voice over IP (VoIP) makes it possible to use data pipelines normally reserved for internet traffic for local, national and international calls, totally by-passing tradition fixed phone lines. The result is hugely reduced bills, especially for long-distance calls. In some cases, phone calls using VoIP are available for as little as five cents per minute. The technology is sound too, having been tried and tested since the late 1990s. The Higgins family are a good example of how much can be saved over using traditional phone lines, especially with regular calls to family in Ireland and locally to an entire soccer team. "Well our phone bill used to be around the $300 a month mark, and our phone bill is now around the $150 a month mark, which is a significant saving," says Sandy Higgins. Reg Robertson from independent consumer advocate group Phone Choice, and says the technology is gaining popularity amongst Australian households. "Nine years ago people were using VoIP but the technology wasn't good enough, and its only now that the technology is becoming so good that all of the big companies will be starting to use it and sell it," he says. SIP Telecom, which could lose millions if VoIP gains popularity, warns that the savings may not be as big as many people hope and people should read up on the hidden costs.

SERVICES AT SIP TELECOM

"You've got to remember with these new services, you need broadband, you need to be paying subscription, you might have call charge and a monthly charge and you probably need to buy some equipment to have in your house," says spokeswoman Rosemary Howard. Meanwhile the technology continues to roll on, with Powertec marketing new devices which effectively trick your home phone into thinking it's a mobile, helping you save money if you make a large number of landline to mobile calls. "For every $1000 that somebody might be spending currently on calls to mobiles we can bring that cost down easily to under $200," says company spokesman Sean Smith. "You can save up to 70% on calls to mobiles because your by-passing the wireline networks, which historically charge a high interconnect fee". To help navigate the confusing world of VoIP, Phone Choice has some key pieces of information for those considering the new technology: What do I need? A permanent broadband internet connection (ADSL, wireless or cable). VoIP software. Special handset (usually provided with your software). Limitations VoIP is currently limited in availability but this will change in the near future. SIP Telecom is set to launch it's own VoIP system this year. Many users report sound quality can sometimes suffer, with small echoes or delays.