Since its first demonstration with a PC sound card and software in 1995, VoIP was thought to be a good idea. It's the most inexpensive way to implement long-distance telephone calls because you're digitizing and compressing the voice and then packetizing it over the Internet. Now that all of the kinks have been hammered out for the hardware and the software, the technology is finally ready for prime time.
At the end of 2003, over 25% of all new enterprise telephone-equipment shipments were of the VoIP variety. And that number is expected to rise to over 50% by 2006. On top of that, many local cable TV companies now offer VoIP phones to replace the traditional POTS connections. About 80% of the 90 million homes with cable-TV access can now get some form of high-speed Internet access, which gives them VoIP capability. Cable companies like AT&T and Cox already offer the service, with Comcast, Time Warner, and others not far behind.
And that's not all. VoIP is likely to find further application in wireless networks. Think of a headset attached to a laptop with Wi-Fi WLAN connections that enables VoIP phone calls to be made from hot spots. Even some cell-phone manufacturers and carriers are considering the implication of packet-based phone calls on a cell phone. Wireless broadband will provide yet another link for VoIP.
Overall, 2004 should be the big growth year for VoIP. The promise of converged voice and data is finally being fulfilled. The big question is whether the FCC will regulate VoIP just like traditional telephone service, thus removing one of its main advantages. And, what will the traditional phone companies do? They're already hurting from years of the telecom downturn. Many carriers in areas where VoIP is implemented are already noticing a decline in service. Combining that with the potential shift to fully wireless home phones could set the stage for some big changes from the telecom sector in the near future. Most carriers will also offer VoIP to stay competitive, so this technology's future certainly remains bright.
Since its first demonstration with a PC sound card and software in 1995, VoIP was thought to be a good idea. It's the most inexpensive way to implement long-distance telephone calls because you're digitizing and compressing the voice and then packetizing it over the Internet. Now that all of the kinks have been hammered out for the hardware and the software, the technology is finally ready for prime time.
At the end of 2003, over 25% of all new enterprise telephone-equipment shipments were of the VoIP variety. And that number is expected to rise to over 50% by 2006. On top of that, many local cable TV companies now offer VoIP phones to replace the traditional POTS connections. About 80% of the 90 million homes with cable-TV access can now get some form of high-speed Internet access, which gives them VoIP capability. Cable companies like AT&T and Cox already offer the service, with Comcast, Time Warner, and others not far behind.
And that's not all. VoIP is likely to find further application in wireless networks. Think of a headset attached to a laptop with Wi-Fi WLAN connections that enables VoIP phone calls to be made from hot spots. Even some cell-phone manufacturers and carriers are considering the implication of packet-based phone calls on a cell phone. Wireless broadband will provide yet another link for VoIP.
Overall, 2004 should be the big growth year for VoIP. The promise of converged voice and data is finally being fulfilled. The big question is whether the FCC will regulate VoIP just like traditional telephone service, thus removing one of its main advantages. And, what will the traditional phone companies do? They're already hurting from years of the telecom downturn. Many carriers in areas where VoIP is implemented are already noticing a decline in service. Combining that with the potential shift to fully wireless home phones could set the stage for some big changes from the telecom sector in the near future. Most carriers will also offer VoIP to stay competitive, so this technology's future certainly remains bright.