VoIP Vs. Skype

VoIP (Voice Over Internet Protocol) is a technology standard that allows its user to transmit and receive voice communications through the Internet rather than through traditional analog telephone systems. The VoIP marketplace is highly competitive, and Skype has emerged as an industry leader by offering consumers a wide array of equipment, pricing options and complimentary services.

  1. Background

    • According to a 2007 International Engineering Consortium White Paper, Internet telephony or VoIP, "...refers to communications services-voice, facsimile, and/or voice-messaging applications-that are transported by the Internet, rather than the public switched telephone network (PSTN)."

      In 1995, a company named Vocaltec introduced Internet telephony software for the personal computer. Vocaltec's reach and functionality was limited to the community of Vocaltec users. Current telephony standards permit calls to occur in a number of ways, including computer to computer, phone to phone and phone to computer. Skype, a European company founded in 2003, became an industry leader by marrying basic VoIP standards with decentralized or "peer-to-peer" computing technology. Peer-to-peer allows the calling process to take place locally instead of centrally over remote computer servers and phone lines.

    Function

    • The specific requirements for initiating VoIP service vary by service provider. Some providers allow calls to be made using conventional, analog phone lines, but most require Internet access, generally of the high-speed (broadband, DSL) variety. Additional equipment requirements could include a computer, a conventional telephone fitted with a special VoIP adapter or a special VoIP-enabled telephone.

      According to Skype's website, a broadband Internet connection is a requirement to use the service. Skype's basic service, known as "Skype-to-Skype," is free and requires use of its proprietary software to place and receive calls from other Skype users. The company charges for calls made to non-Skype users, and they can be paid for by subscription or on a pay-as-you go basis.

    Features

    • Skype has pushed the Internet telephony envelope forward in a number of ways. In addition to Skype-to-Skype calling, it offers complimentary video calls and instant messaging, call forwarding, file-sharing and voice mail. Calls can be made locally and internationally to landlines and mobile phones, using wired or wireless Internet connections. The ability to conference globally, free of charge, especially appeals to business users, on-line journalists and cost-conscious phone users.

    Considerations

    • VoIP's primary allure is the potential to lower the traditional phone bill. However, VoIP is not automatically a substitute for conventional phone service nor is it necessarily equivalent with respect to 911 availability. For example, Skype stipulates that its service "...is not a replacement for your traditional telephone service and cannot be used for emergency calling." Moreover, VoIP services may be unavailable in the event of a power outage.

    Outlook

    • The future for VoIP services is generally favorable, but nonetheless clouded by instances of dropped calls, line echo and static. These problems are expected to disappear over time as core Internet technology and standards improve.

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  • Photo Credit Image by Flickr.com, courtesy of Niels Heidenreich

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