Alexander Graham Bell probably never envisioned today's telephone technology that enables people to hold a conversation from opposite ends of the globe.

Telephone technology has come a long way and is becoming increasingly sophisticated and mobile. Now, you can use your personal computer - from anywhere in the world - to hold a voice conversation or video conference with anyone.

Known as VoIP, which stands for voice over Internet Protocol (IP), this new technology can improve your ability to stay connected. Here is what you need to know to understand how VoIP can help your business.

What is VoIP?

VoIP stands for Voice over Internet Protocol and also refers to Internet Telephony or IP Telephony. VoIP phone system technology is fairly new, but it's gaining ground in both popularity and reliability. It's an alternative to Public Switched Telephone Network (PSTN) and Plain Old Telephone System (POTS), and it gives users an affordable and convenient way to make telephone calls and participate in web and video conferencing over the Internet.

What are your VoIP Options?

A variety of VoIP options provide both residential and business consumers with access to phone system VoIP service. Here's an overview of a few of the most popular options that are available for both consumer and business users.

1. Computer VoIP service utilizes your computer, rather than a traditional telephone system. Simply download the softphone and begin unlimited talking free of charge to other people who also have the service. Additionally, for a small fee, you can use the service to call landline or mobile phones. You only need a microphone and speakers or a headset. Skype is one example of computer VoIP service.
2. Residential VoIP service replaces the landline in your home or office. After signing up for the service, you'll receive an adaptor that plugs into both your Internet line and regular telephone set. Typically, you pay only a one time subscription fee and a flat monthly rate to call via your computer and landline phone. The monthly fee provides either unlimited local calling or may include only limited destinations and limited minutes. Vonage and several major telephone brands offer this service.
3. No-Monthly Bill VoIP service provides the same benefits as residential service. Receive the hardware, make unlimited calls and pay no monthly fee. The hardware works via your computer and traditional phone. Ooma, PhoneGnome and MagicJack are three examples.
4. Mobile VoIP service offers flexible and affordable calling options on your mobile device. The service requires access to Wi-Fi and a data plan. Quality can be affected by your Wi-Fi connection. Options include Yeigo and Fring.
5. Business VoIP service provides numerous packages you can customize based on your business needs. You can consider a business VoIP phone system package that operates similar to residential VoIP service or select a package that accommodates dozens of users or works on a secure private network. Our company, Tesec, offers a VoIP virtual office service and other examples can be found at the major telcos.

What are the benefits to VoIP?

Picking up a telephone is convenient, but you don't always have a phone with you and many phones don't yet have video chat capability.

VoIP provides flexibility and a variety of options for you to consider:

1. Costs less than traditional phone service. With the high cost of living, you need a way to cut expenses - begin by looking at your phone service. Often, VoIP can significantly reduce the amount of money you pay for home or business phone service. All you need is a high speed Internet connection, a microphone and speakers. In some cases, you can even use VoIP on your existing landline or mobile phone.
2. Uses your existing infrastructure. Most VoIP options don't require extra equipment, multiple wires or bulky boxes. Simply download the softphone onto your computer and start calling. If your VoIP service does require hardware, the cost is usually nominal.
3. Gives you portable phone and video access. This benefit is especially important for frequent travelers. Instead of calling into the office each time you check into a different hotel and receive a different phone number or worrying about roaming or international charges, use one number around the world. This VoIP benefit reduces your chances of missing calls, alienating clients and losing sales.

What are the drawbacks to VoIP?

While the benefits make VoIP attractive for consumers, business owners and virtual workers, consider a few drawbacks.

1. Requires a reliable Internet connection. Your VoIP phoning capabilities and call quality will be affected if your Internet frequently goes down or you don't have high speed service. Alternatively, traditional phone systems typically work even when the Internet goes down.
2. Includes unreliable security. Consumers and businesses alike are beginning to question the security of VoIP phone system services. The concerns include:
   • Phreaking, a form of service theft enabled by the lack of encryption on VoIP calls, includes hacking into voicemail, changing call forwarding numbers or hijacking service
   • Eavesdropping allows hackers to access passwords and phone numbers
   • Vishing, VoIP Phishing, occurs when someone calls as a representative of a bank or other organization and requests confidential and personal information
   • Spamming over Internet Telephony, or SPIT, operates similarly to email spam and includes unwanted voicemails that may contain viruses and spyware
   • Viruses and Malware can attack your softphone and software
   • Denial of Service, or DoS, occurs when perpetrators disrupt or degrade your service connection with the intent to remotely access your system
   To combat potential security risks, businesses can use their own managed and private networks to operate their VoIP services and to provide security for their data.
3. Limits emergency access. Traditional 911 calling doesn't work with VoIP because emergency personnel cannot trace your call. If you need a fire truck, ambulance or police, you may be unable to use your VoIP connection to call for help. New e911 features are in the developmental stages, however.

While a VoIP phone system does have benefits and drawbacks, it remains a viable way to stay connected and far surpasses Alexander Graham Bell's imagination.

Chat with family overseas or meet for virtual business meetings with telecommuters and clients. There's no telling where telephone service is headed in the future, but for today, it's firmly entrenched as part of our culture and increasingly includes mobile applications for your personal and business use.