AMERICAN EXPRESS - Web editorial for the Savings At Work® Program

VoIP: Will It Work at Work?

VoIP stands for Voice over Internet Protocol, a technology that digitizes voice signals into discrete packets for transfer over the internet. Just as modems let computers connect to the internet over regular phone lines, VoIP lets people talk over the internet – which can save your business a bundle!

The VoIP Advantages:

Secure Communication: Since all VoIP calls are completely digital, they're completely secure. Specially-designed protocols route VoIP transmissions thru firewalls and address translators for seamless communication and added protection.

Money-Saving Multi-Lines In a Single Channel: VoIP lets you transmit multiple calls down a single broadband channel. All you need is one class of circuit to optimize your bandwidth use. Better still, VoIP service providers charge about half what traditional phone services do – and long distance calling is unlimited!

More Ways To Stay Connected: Internal employee-to-employee calls are done over the internet – not by tying up a landline. The same goes for calls to clients and business contacts. When traveling, simply pack a headset or an internet phone, then log on to make calls for next-to-nothing!

More Places To Stay Connected: All they need is an internet connection for all your employees to be part of the same, common communication system – at their desks at home office, in satellite offices or traveling around the globe.

Quick Contact: You can actually "see" if the employee you want to contact is online and available, instead of leaving a message or voice mail, and waiting for retrieval. Your VoIP system lets you text-message traveling associates instantly. You'll get caller ID, call waiting, 3-way calling, voice mail and more – for no extra charge. You can call-forward, group-chat, conference-call and video-conference, too – all over the internet.

Things To Consider:

The Cost Of "Free" Phone Service: You'll need to upgrade your data network to Category 5 or higher. Work-at-home employees may have to pay for additional broadband access, a VoIP phone or pulse-to-tone converters. And you may have to pay a charge for VoIP-to-PSTN (public switched telephone networks) phone calls. But these upfront expenses may well outweigh savings down the road.

High-Tech Hiccups: During a power outage, you're out of phone service. 911 calls can't be traced. And a lot of traffic on the internet can mean delays or lag-time, referred to as "latency" or "jitter", in the audio stream of your VoIP phone calls. This is especially true when satellite circuits are involved. Depending on your choice of VoIP carrier network, some of these congestion problems can be avoided through advanced tele-traffic engineering.