VoIP:  Making Staying in Touch More Affordable for Small Businesses
 
By Cavyl Stewart

One of the biggest expenses most businesses face is the cost of staying connected to their customers.  Those long distance calls to resolve customer problems, generate new leads, and communicate with vendors can add up and take a sizable chunk out of the profits.  Until recently though, no options were available short of limiting customers to only those in the same area code.  Today, however, an alternative is out there and it's as close as your office desk.  The answer is VoIP (Voice over IP, or Internet Protocol) technology.

VoIP technology allows you to use the Internet to make local and long distance phone calls.  The idea of such communication is not new; it actually originated back in 1995.  A company called Vocaltec introduced software that allowed a voice signal to be transmitted via the Internet; however, both parties needed the software in order to make use of the technology. Another drawback of early forms of the technique was the excessive and annoying lag that occurred as the signal was sent, received, and translated.

Modern examples of VoIP have corrected both of those problems.  In fact, using current technology, making a call via the Internet is no different than phoning business associates in a traditional way.  A phone adapter needs to be connected to a regular office phone and into a broadband modem.  To make a call, the user simply dials the number on the ordinary phone just like normal.  The adapter converts the signal and sends it into the modem, through the Internet, and to the phone of the call's recipient.  When a VoIP user receives a call, his or her phone number works like an email address and leads the signal to its appropriate destination.  The whole process is completed efficiently and without the lag time that seriously hindered earlier attempts.

While VoIP providers have high hopes that the technology will streamline communications and will open the path for more advanced applications, the best reason to adopt the service now is the savings.  When a caller normally dials a long distance number, the call is passed through the local phone company to a long distance carrier.  This carrier, of course, charges per minute for the call.  With VoIP, however, the call goes from the local phone company to a VoIP provider, which means no long distance charges are incurred.

Even though long distance fees become a thing of the past, users do need to pay for the VoIP service, but these costs are relatively reasonable and are not much higher than what most individuals pay for their local phone service already.  For example, one of the most popular VoIP providers, Vonage (www.vonage.com/small_business), offers a small business plan for only $49.99 per month.  The rate includes unlimited nationwide callings, a free dedicated fax line, free long distance, call waiting, call forwarding, voice mail, low international rates, and more.  Plus, subscribers can choose to keep their existing telephone numbers or to select a number with any area code of their choice.  Additionally, the phone adapter is provided free with subscription.  In comparison, SBC offers a business package that includes voice mail, call waiting, and call forwarding for almost $35 per month without the fax line or the long distance service.  AT & T provides a similar business package for around $38, but the package only includes 1450 minutes of local call time.  Additional minutes cost extra, as does long distance.

For small businesses or home offices that want to save money on their telephone bills and which have a broadband Internet connection, VoIP is definitely worth a second look.  Because the technology has become more advanced in recent years and because the price of long distance calls continues to rise, VoIP could be the perfect solution for staying connected and cutting costs at the same time.


Cavyl Stewart is the owner of http://www.find-small-business-software.com, which is dedicated to providing resources and information on finding the software solution that is right for your needs and budget.