SMALL AND MEDIUM BUSINESS TECHNOLOGY STRATEGIES
VoIP: The Future of
Communication
Presented By: Next Level Technology | July 2015
This white paper briefly describes the history, function, and application of VoIP for
small and medium-sized businesses.
This white paper is an introduction to the available VoIP solution from Next Level
Technology and is geared towards business owners and executives that are seeking
solutions to their company’s IT difficulties.
Statement of Confidentiality
This document contains trade secrets and information that is company sensitive, proprietary, and confidential, the disclosure of which would
provide a competitive advantage to others. Therefore, this document shall not be disclosed, used, or duplicated, in whole or in part, for any
purpose other than to evaluate the requirements herein.
Copyright © 2015 Next Level Technology. All rights reserved.
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Executive Summary
The invention of the telephone by Alexander Graham Bell in 1876 ushered in an era of unprecedented human
interaction. It was the first time that human beings were able to communicate via an electrical connection, and the
first bi-directional transmission of its kind. The original telephone, and all devices until very recently, were bulky
and fairly inconvenient in the eyes of today’s technology, but at the time they were considered a revolutionary
step in the development of human communication.
In order to keep up with the current technical trends, many small businesses have said goodbye to their landlines
and transitioned to Voice over Internet Protocol, which will be referred to as VoIP for the remainder of this
document. In a sense, VoIP has transformed the way that we communicate just as much as the original telephone.
It was a breakthrough of modern science and technology that reinvented the way that we use an older, preexisting innovation.
Using VoIP has many benefits over using the old and outdated landline. But, how can we truly see how great the
benefits are without revisiting what made the original telephone such a historically useful device? We’ll first
examine the development of the telephone and what made it such an important invention; afterward, we will
investigate VoIP itself, and how it compares to more traditional means of business telecommunication. We will
then discuss the various benefits that VoIP can provide for your company.
By the end of this document, you will have learned the basics of VoIP and how it works, and you will be able to
make an educated decision concerning your business’s telecommunication needs. Will you continue to use that old
landline, or will you opt for a VoIP system?
The History of the (Not so) Modern Telephone
Though there has been much controversy concerning who, in fact, came up with the idea of the telephone,
Alexander Graham Bell was the first to receive a U.S. patent for the device, and is widely recognized as the
inventor of it (with a few others, such as Italy’s Antonio Meucci recognized for their involvement in its
development). Following the implementation of the first practical telephone by Bell, many different types of
phones came into existence. The first telephone was big and difficult to speak into. It required lifting the entire
apparatus to your mouth, and you listened and spoke through the same hole in the device.
Other models would soon follow, such as the “Candlestick”, popular from the
1890s to the 1930s. Unlike the device crafted by Bell, the user would speak
into the apparatus and hold a separate unit to their ear. Later styles would
combine the speaking and listening parts of the telephone to form the familiar
device of the not-so-distant past. These phones typically used the rotary
dialer, with which users would rotate the dial to the number they needed and
then release. Due to the tedium of this style, AT&T developed what would be
known as the push button telephone; Touch-Tone. Each key was able to
transmit a specific frequency, which would allow the telephone operator to
know which number you were dialing.
Everything changed once again with the invention of the answering machine. No longer were missed calls exactly
that - missed. This innovation allowed callers to leave messages on the other end of the dialer in the event that the
receiver wasn’t there to pick up the call. The earliest answering machines recorded messages using cassette tapes,
but would gradually move toward digital recording and cell phone voicemail technology.
The earliest cell phones didn’t exactly scream “portable”, but for the first time, you could move around freely
while being connected to your telephone without cords or being physically attached to the phone’s location. Cell
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phones were extraordinarily expensive when they were first introduced, with the Motorola DynaTAC 8000X (also
known as “the brick” or “the shoe” phone due to its size) costing close to $4,000. According to a CNN interview
with Martin Cooper, inventor of the cell phone, “that would be like buying a phone today for $10,000” (Anjarwalla
2010) - quite the shocking concept!
While the first cell phone wasn’t exactly consumer-friendly, as time went on, cell phones decreased in size, weight,
and cost - making them affordable and easier to use by all. The early 2000s were known for the Blackberry,
Windows Mobile, and Palm cell phones, in addition to Motorola’s RAZR, drastically cutting down the size of
portable phones.
When Apple introduced its iPhone in 2007, everything changed once again. Not only could these phones be taken
anywhere, but they could also connect to the Internet. Even to this day, the iOS and Android operating systems are
the primary leaders in the mobile computing race (Zigterman 2013).
If you look at all of these developments in the history of the telephone, one thing stands above all else - the pursuit
of mobility. All movements in telephone technology were to expand what we can do with the technology, and VoIP
is no different. It provides a sense of mobility and interaction that is unprecedented.
Traditional Methods of Telecommunication in the Office
You’re probably asking what this has to do with the way you do business, but the answer should be clear by now.
With the advent of greater technology, you aren’t glued to your desk waiting for phone calls anymore. This offers
you many more options when considering how you would like your business and office to communicate within
itself and with your clients.
Landlines
For some businesses, landlines are still a perfectly acceptable method of communicating. They are certainly oldfashioned, but they can provide you with a reliability that some cell phone providers can’t offer. Think about the
dead zone that you drive through every day on your way to work, and you’ll see what we are talking about. A
landline will generally always be there when you need it.
Additionally, it is a good idea to keep landlines around as a backup measure in case the cell phone tower is down
or some other catastrophe occurs, like losing your cell phone or the Internet being inaccessible. You’ll always have
a good backup plan so you can prepare for the worst.
Cell Phones
If your business isn’t already equipped with cell phones, we would be surprised - with the coming of new
technology, cell phones have become much more affordable than they used to be. Even simple flip phones can
benefit your company by allowing you to take calls anywhere at any time (provided you have a signal).
Some businesses even provide their employees with company cell phones because they find that it is imperative to
their success. This just shows how much the cell phone has contributed to the need to be on-call while being
mobile. They don’t have to have all of the bells and whistles that modern smart phones have. Even a simple flipphone can do wonders for your business’s mobility.
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Smartphones
Unfortunately, a flip-phone doesn’t come with all of the great
features that a smartphone does, especially for business productivity.
Years ago, the concept of mobile Internet and email would have been
unheard of, but today’s society embraces it with open arms. Most
smartphones have all of the benefits of a laptop (to a lesser degree),
but are far more mobile and convenient.
Using a smartphone has various benefits over using a laptop, with
perhaps the biggest one being that the smartphone is much easier to
carry around with you at all times, simply due to sheer size and
versatility (Kooser). Smartphones have email capabilities, GPS,
language translators, Internet browser access, and a host of other
applications readily available through an app store. Some even allow
for video chat! Being able to work anywhere at any time while still
being able to make video calls is a definite boon to the technical
industry, if not all kinds of businesses.
Voice over Internet Protocol (VoIP)
Perhaps one of the most influential changes to telecommunication is VoIP, or rather, Voice over Internet Protocol.
This concept allows you to turn your computer into a phone and communicate over the Internet. According to
theVoIPDir.com, VoIP is “simply a transmission of Voice traffic over Internet Protocol (IP) based network”
(theVoIPDir.com).
VoIP operates by using an Analogue Terminal Adaptor, which is used to turn analog phone signals into digital
signals that are able to be processed and sent over the Internet. Some technologies that utilize this are plug-in
microphones and headsets, which will pick up your voice, convert it, and then transmit it over your network to the
recipient. Many businesses find VoIP to be optimal for long-distance phone calls and even video meetings because
of its sheer convenience and the extraordinarily low calling cost (some VoIP providers are free and open-source).
Ways of Using VoIP
PC to PC
Using your computer to participate in VoIP calls is the most popular method of using this technology, and there’s a
good reason - because it is so cheap and easy to use. All you need is a computer connected to a quality Internet
connection, and that’s half the battle. The other half is having the necessary hardware to speak into the computer
and listen to what the other side of the line says (i.e. a headset, or microphone and speakers).
Phone to Phone
If you don’t like the idea of speaking into a microphone or a headset for your phone calls, there is an old-fashioned
route you can take, too. Your VoIP phone system can utilize a traditional desktop-style phone to make and receive
calls from. These phones are ready to utilize the additional features of a VoIP phone system, with controls to put
calls on hold, conference, and other capabilities not found with traditional handsets.
You can set up VoIP for your cell phone. Some smartphones come with VoIP capabilities, making it as easy as
setting up and account and your credentials. Other options include the ability to plug your phone into your
computer and use it as a “headset” of sorts, channeling voice transmission over the Internet.
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Phone to Computer
Due to the nature of how VoIP works, you’ll also be able to use a phone to call
an IP phone on a computer. The reverse holds true as well. You’ll be able to call
someone using your VoIP who doesn’t use VoIP, like someone using a normal
phone would. This also lets people get in on the conversation if they aren’t near
a computer, making it a very versatile type of software.
Overall, VoIP has the potential to improve the way that you do business. Are
you sick of hearing that phone ring every four minutes, or missing calls because
you are out of the office? VoIP has the capabilities to solve your landline
problems.
Differences between VoIP and Traditional Business
Telephone Plans
Some might not realize the immediate differences between the way that VoIP functions and the way that a
traditional telephone line functions. After all, you’re still basically doing the same thing, right? All you’re doing is
calling someone and listening to them speak, then speaking back. Big deal. But, the differences go much deeper
than you would think.
How They Work
One thing is the same between the two types of telephone systems - they both utilize a PBX, or a private branch
exchange, which is a phone network a company uses. According to Oliver Kaven’s article in PC Magazine, “VoIP
Gets Down to Small Business”, “all users within the company share a certain number of outside lines for making
and receiving calls. Internal calls are routed without the PBX and generally don’t require outside connectivity”
(Kaven 2005). The big difference lies in how the communication occurs between the two sides.
With the traditional business phone system, PBX’s connect their proprietary phones to one central switch, and
from there all calls are redirected and rerouted. These installations rely on traditional telephone wiring to bring
each individual phone line to the patch panels, which then connect to concentrators and to the telephony switch.
This switch is then connected to the telco box and can be split into multiple voice circuits and ISDN lines, making it
the traditional telephone that we all remember from the early days of telecommuting.
VoIP, however, uses a different type of PBX based off of IPs. It still connects into the telco, but instead of using the
voice circuits, it transfers the voice over an IP network in digital signatures. All of the outbound calls are handled as
normal through the telephone lines, but any calls made internally, or those going toward branch offices, are
handled via the Internet.
One result of using VoIP is that businesses aren’t paying for any expensive telephone networks. Since the voice
traffic is being routed through existing data networks rather than setting up a whole new telephony system. Many
businesses enjoy paying only for what they use. This in particular is very useful for companies with many offices in
different locations, as the cost for long-distance phone calls has been eliminated, making it far more cost-efficient.
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Benefits of Using VoIP
When it comes to using a modern telephony system, VoIP is about as modern as it gets. By sending your voice over
the Internet using VoIP technology, your business will enjoy many benefits that would be nothing but a passing
thought for users of traditional telephony systems. In Patrick Park’s book, Voice over IP Security, he discusses many
of these benefits in detail.
Cost Savings
As previously mentioned, VoIP is significantly cheaper and more efficient to use than a legacy telephone system.
Long-distance business calls add up over time, and they could potentially cost you and your business a small
fortune in normal calls. By switching to a VoIP provider, you save money by eliminating these additional costs,
including costs associated with equipment, manpower, maintenance, and
telephone lines. Thanks to the VoIP network being attached to the IP address
and Internet network, this diminishes the need to pay for long-distance phone
calls, making it much more affordable in the long run.
You will experience significant initial setup costs, but the overall savings more
than outweigh these initial costs. By managing one network and removing
your old, legacy telephony system, you’ll be able to concentrate more on the
VoIP network, and reduce the administrative burden. This also reduces the
burden on your consumers, by decreasing the amount they pay to receive
your calls.
Rich Media Services
When you are using a traditional telephony system, you get the very basics; voice communication, fax services, and
voicemail. Wouldn’t it be great if you could also exploit video chat technology for webinars and team meetings?
VoIP offers all of these services, and allows you to share images, pictures, and other media.
With the advent of the Internet, society grows more and more connected by the day. The current generation
knows this more than anyone else, as they browse social media sites and use it to communicate more than any
generation before. They expect to be able to exchange media with their telephony service, whether it’s with their
smartphone or the Internet. This makes the demand for multimedia telephony quite high, and reinforces the
market for VoIP so that it can be made affordable for all.
Portability
Traditional telephony required a dedicated telephone line that a phone number was attached to, and it wasn’t
possible to move too far from your home without a mobile phone. If you were to move elsewhere, you would have
to get a whole new telephone number. People would have to ask the telephone company to enable a new
telephone number whenever they would relocate.
With VoIP, you don’t have to worry about any of those problems. So long as you have access to the Internet, you
can use the same phone number anywhere you want. This is great for business owners who are always on the
move to spread word of their vision and their product. With VoIP, you can use the same number no matter where
your travels take you, even on the other side of the world!
The same can be said for the phone’s services. Wherever your IP phone goes, your service goes, and you’ll never
have to worry about not being able to access your call features, voicemail, call logs, security features, service
policy, and other important features.
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Application Integration and Compatibility
VoIP is on the application level of software, meaning that you can use other applications that integrate with it to
enhance collaboration efforts between yourself and your employees or clients - all remotely. You can integrate
email, web browsing, instant messaging, social networking, and many other applications to work together with
others. This allows you to create a sense of collaboration between your team, and more importantly, your clients they’ll feel like you are there with them and are doing everything you can to assist them with whatever they need.
Conclusion
In today’s world of mobile technology, it simply doesn’t make sense to cling to ancient landline technologies. You
need the versatility and cost savings that VoIP offers to businesses. It is irrelevant and illogical to not take
advantage of something that can save your business money and improve communications both in and out of the
office. VoIP is the saving grace that many companies need to stay one step ahead of their competitors in a world
where mobility is everything.
Next Level Technology is the key to unlocking this latent power that dwells within your business. There are many
different types of VoIP providers out there, but not all of them are on equal footing. Our technology professionals
will work with your business to ensure that you get the best value and return-on-investment for your VoIP
technology.
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Focus on Your Business
Not Your Technology
Get a FREE Business
Telephone Consultation
Learn more about how VoIP can benefit your business operations today by calling Next Level Technology at 410616-2000 or visiting us on the web at
NL-tech.com
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Works Cited
Anjarwalla, Tas. “Inventor of cell phone: We knew someday everybody would have one”.
CNNTech. Cable News Network. 9 July 2010. Web Access 24 July 2014.
http://www.cnn.com/2010/TECH/mobile/07/09/cooper.cell.phone.inventor/index.html?hpt=Sbin
Kaven, Oliver, Erik Rhey. “VoIP GETS DOWN TO SMALL BUSINESS”. PC Magazine. Vol. 24,
Issue 19/20. 8 November 2005. p190-198. Academic Search Complete. Print.
Kooser, Amanda C. “About the Use of Telephones in Businesses”. Houston Chronicle. Hearst
Newspapers, LLC. N.d. Web Access 24 July 2014.
http://smallbusiness.chron.com/use-telephones-businesses-5263.html
Park, Patrick. “Eight Benefits of VoIP”. Voice over IP Security. Pearson Education, Cisco Press,
1st Edition. 9 Sep. 2008. Print.
“VoIP Guides: What is VoIP?” Thevoipdir.com. N.p. N.d. Web Access 24 July 2014.
http://www.thevoipdir.com/a-what-is-voip.html
“What is Plain Old Telephone Service or POTS?”. NerdCrunch. 19 July 2011. Web Access
24 July 2014.
http://nerdcrunch.com/2011/07/19/what-is-plain-old-telephone-service-or-pots/
Zigterman, Ben. “How we stopped communicating like animals: 15 ways phones have evolved”.
BGR Media, LLC. 13 December 2013. Web Access 24 July 2014.
http://bgr.com/2013/12/13/telephone-timeline-a-brief-history-of-the-phone/
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