Voice over IP (VoIP) telephony Research Paper Example | Topics and Well Written Essays - 1250 words

Voice over IP (VoIP) telephony - Research Paper ExampleIn open words it can be said that using VoIP applications a caller will be able to avoid paying long distance external call charges and too save expensive telecommunication hardware and infrastructure (Hallock, 2004, pp.5-8). The principles of VoIP are similar to traditional digital telephony in that the former also involves channel setup, signaling, conversion of analog voice signals into digital signals, encoding and decoding. The difference with traditional digitized telephony is that the encoded VoIP digital signals are transmitted over packet-switched networks as net profit Protocol or IP packets instead of being transmitted over circuit-switch network. This innovation of packet-switched entropy transfer is based on the principles of time-division multiplexing networks. The early business inspection and repair provider models of VoIP were based on traditional telephonic networking only with difference on how the data w ould transfer across channels. The second generation providers of VoIP included the concept of closed networks for enabling private communication between secured exploiter bases. The Skype is one of the most popular second generation VoIP service providers whose technology offers their users free calls. provided the business model of Skype charges connection or access charges to customers to use private networks or public switched telephone networks (PSTN). The advantage of such model is that users requirements for hardware or software compatibility would be minimized and independent. The third generation of VoIP, mainly popularized by Google Talk, allows dynamic interconnection between any two user domains on the internet (Bianco, 2006, pp.365-367). Analysis of Existing Applications and Market Trends The main reason for the offshoot of VoIP over the years is due to its popularity as a business data networks application. With the application of VoIP a business enterprise will be able to reduce its service and hardware costs by increasing productivity done customized telephony applications. VoIP technology ensures secured and consolidated telecommunication network for business enterprises. As the prices of bandwidth are falling, the internet telephony is increasingly becoming popular and more affable to global customers. With the help of VoIP business critical information could now be telecommunicated without any significant delays (which were more prominent in traditional international telecommunications) and then increasing the efficiency of the company. Thus, one of the major reasons for quick acceptance of VoIP was cost efficiency that the companies could realize from the implementation (Bergstrom, 2004, pp.17-18). (Source Tele Geography Research, 2008) The traditional telephone lines are replenishment the medium of communication between business enterprises as well as households. A research has found that only the North American residential VoIP wo rk has grown over 31% CAGR (compounded annual growth rate) and it was a $1.25 billion VoIP service industry in the year 2005. (Source Word Press, 2011) The main drivers for the tremendous growth of VoIP can be attributed to some important VoIP characteristics including cost savings, reliability and easier functionality. SWOT Analysis The VoIP technology allows customers to make