1. Call Cost Reduction.

The lower cost of calls on VoIP systems over traditional PSTN networks is the first advantage people think of when switching to a VoIP based system. Essentially phone calls made over existing IP circuits are free, save for the cost of the equipment required to make that call. Enterprises can cut their telecommunications costs with VoIP in two ways:

1a. Calls over the company IP network.

Most multi-site companies have linked their computer systems over an IP wide area network (WAN). VoIP technology uses this network to carry voice calls. Companies can install specialized IP phone systems, or IP gateways such as VegaStream to connect existing phone equipment to the WAN. This removes the call charges and, equally significantly, the rental charges on the telephone lines.

1b. Using and Internet Telephony Service Provider (ITSP)

ITSP’s use IP transmission in their own networks to by-pass the wholesale charges made by the incumbent telephone company. This by-pass occurs as the customer is connected to the ITSP’s switch via an Internet circuit, as opposed to multiple telephone lines to the incumbent phone company’s switch. The ITSP will use the Internet to by-pass the long distance and international charges. For example, an ITSP’s customer’s international call will be carried on the IP network from the point of origin to a break outpoint in a foreign country. The ITSP will incur its capital costs of the IP infrastructure and only the wholesale charge for the foreign national leg of the call. Previously, the service provider would have to pay charges to the local phone company, an international carrier and the foreign carrier. The net result is long distance and international call charges from an ITSP are significantly lower than traditional phone companies.

Again, a company can connect its existing telephone equipment to an ITSP using VegaStream gateways. Despite deploying this new technology, for all intents and purposes, the company uses its phones as it always has done, but simply benefits from significantly reduced costs.

These reduced call costs are of course available to companies that implement a fully converged VoIP solution using IP phones or “soft phones” on their PCs or PDAs. A gateway is essential in this scenario to allow calls to be made between the company’s VoIP system and its customer, suppliers and partners who still use traditional telephone systems.

A company that decides to follow this route to full VoIP implementation (as one day we all will) can accrue other benefits as follows:

2. Simplification.

An integrated infrastructure that supports ALL forms of communication allows more standardization of equipment and a single cabling infrastructure. This leads to a further overall fall in operational costs.

3. Flexibility.

A VoIP system is based on software rather than hardware, making it easier to alter, upgrade and maintain. VoIP allows you to safely set up a fully functioning office anywhere a broadband connection is available including the home office and telecommuters. Combining a VPN (Virtual Private Network) to your VoIP prevents unauthorized access to you system alleviating security concerns.

4. Scaleable.

Traditional telephone systems are difficult to expand or upgrade, it is easy to outgrow your current system and you may need to replace hardware or, even replace your entire system. VoIP systems however are easy to upgrade in line with your company as it grows, as your needs change your VoIP system can adapt easily to your changing telecommunications requirements.

5. Multimedia.

Even though telephony and facsimile are the initial applications for VoIP, the longer-term benefits are expected to be derived from multimedia and multi-service applications as technology develops. Videophones for example, will bring a new dimension to corporate communication, where visual contact with clients is important.

6. Easy Installation

Using VegaStream gateways, VoIP systems can operate side-by-side with existing telecommunication system. Companies can therefore phase