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Voice Over Internet Protocol  (VoIP) is a new technology that uses  broadband Internet and/or network lines to transmit real-time voice  information.  This technology has the potential for completely changing  the way phone calls are made and making phone companies a thing of the  past.

To make a phone call on the Internet, several things must happen.  On  the sending side, analog voice signals are digitized, compressed,  divided into packets and transmitted over network lines.  On the  receiving end, the signals are recombined, uncompressed and converted  back into audio.  Because the voice signals are digital, they can be  transmitted just like any other data packets on a network.  The major  difference between these voice packets and regular data packets is that  for VoIP to be effective, the signals must be delivered in a timely,  reliable manner. VoIP can be relatively inexpensive to implement,  although costs rise as the complexity of the system increases.  Because  many companies already possess the infrastructure necessary to  implement VoIP, more and more of them are opting to forego traditional  phone service.
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Last Updated: Sep 2009
What is VoIP?
Cisco's CEO John Chambers predicts that enterprise  networks will accelerate their adoption of Voice over IP technology.

There are currently several problems with this technology.  If the  computer or network lines fail, then telephone service is interrupted.   While the stability of computer hardware, operating systems and network  infrastructure has improved significantly in the last decade, crashes  still occur.  The "up" time of these systems is still significantly  less than with traditional phone systems--which often continue to  function even during power outages.   Another issue is that tracking  the origin of a call is difficult because the signals are transmitted  over the Internet.  This is especially important to emergency  responders to 911 calls.  Caller ID service may not function either.   Additionally, devices that make calls using phone lines, such as fax  machines, cable TV boxes, etc. may not function properly.  Law  enforcement officials may have difficulty wiretapping phone lines that  use VoIP technology.  Finally, the quality of VoIP service is lower  than that of a traditional phone system.  Since the information is  transmitted over network lines, it is subject to the same issues that  other data streams experience including delays, packet loss and  bandwidth availability.  Thus VoIP phone calls may break up, hesitate,  or cause words to be dropped.  All of these issues are being addressed  and their significance should be eliminated over time.
What is VoIP?
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