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About 2181 days ago Telecom and Wireless

The Future of Small Business Telephony Is Here: And It’s VoIP

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Kuala Lumpur, Malaysia — It is 8:30 a.m. The phone in my hotel room is ringing. Not the one connecting to room service or the bell desk, but the other one. The one I brought from the U.S.; the one that follows me wherever I go, ringing anywhere in the world to my old faithful ten-digit California number. Yes, my normal office phone is now sitting on my desk in my hotel room, ringing for me to answer an incoming U.S. domestic call. Voice over Internet Protocol service (VoIP) simply and effectively allows me to bring my phone service with me everywhere I go at no extra charge. VoIP is a technology that allows you to make voice calls using a broadband Internet connection instead of a regular phone line. VoIP services allow you to call anyone who has a telephone number — including local, long distance, mobile, and international numbers — either over your computer, using a special VoIP phone, or using a traditional phone connected to a VoIP adapter. The newest generation of VoIP phones can even connect directly to any wireless access point (WiFi) router you may have access to, eliminating the need for external adapters and allowing for use through public wireless access points. While things may be poised to change, the telephone is still the most relevant tool in business today, and our dependency on voice communications is clear. During the last couple of years VoIP has moved from being a complex, unreliable, low quality service to a mature, competitive, simple to manage and high quality offering. VoIP service affords a number of advantages over traditional telephony providers that make it an overall better choice for small businesses and particularly for the millions of people that travel or work away from their office for a substantial portion of their time: Your phone number travels with you; Anywhere you can connect to the Internet you can have your phone for incoming and outgoing calls; If you obtain a U.S. phone number and travel abroad you can bring the phone or IP adapter with you and make/receive calls at U.S. domestic rates; Overall rates are quite lower that traditional telephony services; And high-end services such as voice mail to e-mail and multi-party conferencing are often bundled in at no extra cost. The competition is heating up and a roster of VoIP service providers is blooming. Some of the ones with small-business friendly offerings are Lingo, Vonage, Vonics, Skype and Packet 8. While each service provides different options and plans, the basic features are all the same, and all offer the lower cost and higher flexibility advantages of VoIP. If your company’s telephony needs are more complex than what can be provided by single-line services and require multiple lines, extensions and attendant features, you should consider hosting your own company VoIP telephony server. Either via a custom-built solution, or a pre-configured appliance, your small business can host its multi-line, telephony server for a very limited budget. Features like multiple extensions, call transfers, conferencing, auto-attendant (IVR), voice mail to e-mail, operator panel, music-on-hold, call forwarding and name directory are all included in preconfigured systems that sell between $1,000 and $3,000. IP phones that cost from $30 to $150 each. Quality, affordable VoIP servers are made by various companies, including Fonality and Zultys. At the higher end, top products are available from Cisco and Avaya. In-house, server-based solutions take as input regular phone lines and distribute the service to extensions via Internet protocol (IP) and data wires instead of phone wires. This allows for incredible flexibility of internal communications, allowing for extraordinary things such as having your phone attendant seamlessly work at home, or speaking with your manufacturing office in Vietnam at no cost at all and by just dialing its extension number. These solutions also allow for PCs, such as your salesperson’s laptop, to act as virtual handsets by using software that mimics the behavior of a regular phone. A number of “soft phones” are available on the market from vendors such as Cisco, Avaya, and Nortel, or you can download a very popular and effective free one at SJ Labs. The benefits of VoIP are incredible for small business. Switching to VoIP, in most cases, provides a quick return on investment. Old fashion telephony is on its way out and business voice communications are quickly shifting towards the VoIP paradigm worldwide. Empower your small business to take advantage of this first mature wave of benefits and write “Switch to VoIP” on top of your to-do list. Andrea Peiro is president and CEO of the Small Business Technology Institute, a non-profit organization created to foster the adoption of information technologies among small businesses.

About 2485 days ago Telecom and Wireless

Time to Switch Your Business to VOIP?

Voice over Internet Protocol, or VoIP, uses a company’s broadband Internet connection to place phone calls over the global computer network instead of via traditional wire-line phones. The key appeal of VoIP for small and medium-sized businesses is that the technology has the potential to save money, but you have to weigh those savings against the risks. “This is one more way to get additional value out of that Internet connection,” says Mike Wagner, director of World Wide Marketing at Linksys. “Initially users got broadband to browse the Web, but now you can use it to make unlimited calls in the U.S. and Canada for $29.95 a month, and international rates start around four cents a minute.” There are different ways to use VoIP: either download software and use your computer with a headset, contract for a monthly service and connect using your regular phone with an adapter, or use special small business VoIP hosting services. Deciding which technology is right for your business will depend on the size of your organization, the phone features that you want, and whether the firm has numerous satellite offices that run up large phone bills through internal calls alone. Free VoIP Services A home-based business or one with only a few employees could conceivably switch to VoIP by downloading free software from the Internet from such services as Skype and making calls using a computer and a headset. Skype software is free. Calls costing only the price of your Internet connection to other Skype users, or run a few pennies a minute for domestic calls to people with traditional phones. Radio Shack’s VoSKY Exchange offers Skype software for the business office for $800. The potential business risks include having your company’s phone service down in the event of an electrical outage, a computer crash, virus or worm. In addition, the free services have no provisions for connecting emergency 911 calls. Telephone Replacement Service For a small office, the best option may be a for-pay VoIP service that enables your workers to use a traditional telephone. In order to use VoIP with a dial phone, you need an analog telephone adapter, or ATA. This device converts the analog signal (your voice) to a digital one. Most VoIP service providers — such as Vonage or AT&T’s CallVantage — offer the adapter for free with their packages. If bought separately they cost between $50 and $100. The benefit of going with a service is that is easier to reach non-VoIP members, emergency 911 calls go through and packages tend to offer bulk usage for one monthly price, similar to cellular phone plans. They also provide integration with desktop computer applications, including your address book, Web browser or Microsoft Outlook, enabling such features as quick lookup and click-to-call dialing. Caution: some adapters won’t work with every VoIP, so check with the provider. VoIP Hosting Medium-sized companies with several offices spread over a geographic region have other VoIP needs that eliminate fees for calls between locations and thus reduce overall phone bills. For these firms, VoIP hosting services, such as those offered by Covad or Packet8 and other companies, may be best. Many hosted services deploy VoIP over PBX (Private Branch Exchange) systems — telephone systems owned by a private business instead of a common telephone carrier. These features allow small and mid-sized companies to use an unlimited number of extensions in geographically diverse locations. Some of the hosting services are appealing because they eliminate high telephone bills for intra-company calls between branch offices, but they can cost between $10-80 per line per month and also come with startup fees. At the same time, they provide more reliability and guaranteed levels of service. Here are some popular VoIP service plans: AT&T CallVantage – $30 unlimited calling U.S. and Canada Offers call logs, voicemail, speed dial, call waiting/forwarding, caller ID, fax support, directory assistance, three-way calling, and do not disturb. Not all CallVantage subscribers have E911 service (works like 911), so check before you leap. Vonage – $25 unlimited calling U.S. and Canada Call waiting, caller ID and conference calling. Vonage offers basic 911 service to all subscribers, but you must provide them a physical address. 500 minutes: $14.99 per month. Vonage provides the best overall reliability. BroadVoice – $20 per month for unlimited calling No 911, but unlimited calls to Europe, China, Chile, Singapore, Taiwan and Australia over broadband Internet. The $25 plan includes 14 more countries. Voice quality is average.

About 2546 days ago Telecom and Wireless

VoIP Comes Calling

If you haven’t yet heard of VoIP–voice over Internet protocol–you’re probably still using a rotary phone. The phenomenon of running phone calls over an Internet connection, through upstart telecom providers such as Vonage, Skype, and Packet8, is growing like mad. There were more than 4.5 million VoIP users in the U.S. last year, and that number will double this year, according to International Data Corp. But while VoIP is a lot less expensive than old-fashioned phone calls, the service hasn’t always been so good, and there’s been a paucity of features designed specifically for small businesses. Fortunately, VoIP is growing up. Many long-standing concerns–having to do with reliability, sound quality, convenience–have finally been addressed. And scores of new products now make Internet phone systems more powerful than landlines. Here are the six we like best. Best for… The paranoid Zfone Cool features: VoIP calls are routed over the Internet, which means they can be hacked just like e-mails. That’s not a huge problem yet, but such mischief is inevitable, says e-mail encryption pioneer Phil Zimmermann, creator of Zfone. The software, which is available for free download, encrypts and secures your VoIP communications; the only catch is that the person you’re calling also has to have it. In action: Dan Kohn runs FlyDash.com, a website for frequent fliers, without a regular phone, opting instead for his cell phone and a VoIP service on his laptop. Kohn says he’s not paranoid, but he hates the idea of some hacker being able to eavesdrop on his conversations. So when he heard about Zfone, he knew he had to have it. He got it up and running in 10 minutes and has convinced a number of business associates to download it so that his conversations with them will be unhackable. Price: Free Best for… Road warriors BroadSoft Cool features: With BroadSoft, the office is never far away. The system can ring up to 10 numbers simultaneously; in other words, if someone calls your office and you’re not there, the system will ring your home, cell, car, and any other number you have. It also enables your cell phone to work like an office phone–you can transfer calls to colleagues and connect to co-workers just by dialing their extensions. In action: Business trips were always a hassle for Cash Doye, mostly because Doye, the CEO of Denver-based NewPrime Home Loans, hates being out of the loop. Checking voice mail a few times an hour was a pain, as was ensuring that everyone knew to call his mobile rather than his office phone. He recently ditched his traditional office phone system for BroadSoft’s Mobile PBX. He felt the difference immediately. He was on a business trip in Florida, for example, when a potential investor rang his office; instead of putting the call into voice mail, the system rang his other numbers. Doye took the call and answered the investor’s questions on the spot. “He was operating with me as if I was still in the office,” Doye says. Price: About $40 per user per month (includes local and long-distance calls) Best for… Replacing the receptionist Iotum Cool features: Iotum’s software lets your phone know which calls you want to take and which you don’t. It also takes the pain out of setting up conference calls by ringing all participants automatically. In action: Ray Vilis was in a sales meeting when his cell phone started ringing. Damn, he thought to himself, as he mumbled an embarrassed apology. Vilis, vice president of product management and business development for Versatel Networks, doesn’t have that problem anymore. Vilis uses Iotum to manage his calls. It monitors his calendar and automatically knows not to ring any of his six phone numbers if he’s in a meeting–except for callers he specifies. “Iotum gives me back the switchboard operator, only it costs a lot less,” he says. Price: $5 to $10 per user per month Best for… Toll-free numbers RingCentral Online Cool features: RingCentral provides toll-free numbers that can easily be tied into your VoIP, cell phone, and fax line. The easy-to-use service, which is hosted on the Web, also provides a range of call-management features. In action: Charlie Ruddy is CEO of TennisConnect.org, which provides Web-based marketing services to the Tennis Industry Association. Ruddy wanted a toll-free number to better serve his clients. But he was dismayed to learn that an 800 line from an old-school telecom provider wouldn’t work with his company’s VoIP system. With RingCentral, he got a toll-free number that can be set to ring his office or cell phones and all missed calls go into a single mailbox. He also gets a host of other services, like multiple lines for different departments. The price? “Less than $100 a month, for both VoIP and RingCentral,” Ruddy says. Price: Starts at $9.99 per user per month Best for… Boosting sales eStara Cool features: eStara uses VoIP to offer “click-to-call” services. Businesses put a phone number on their online advertising or websites; when potential customers click on the ad, they are connected directly to the company via VoIP. EStara also provides the same feature to customer support centers. Plus, it keeps a record of all incoming calls, creating a database of sales leads. In action: Todd Walrath, executive vice president of Leads.com, specializes in using the Web to generate business leads for clients. He uses eStara’s call-tracking service to track calls generated from clients’ ads on sites such as Yahoo and Google. Not only is it cheaper than purchasing a new toll-free number for each promotion, but customers can also check their logs in real time to see who has called in and from where–and not just the calls they got but the calls they missed. “What’s really cool is that we can use the Internet to drive consumer demand through the existing phone network, which everyone has,” says Walrath. Price: $2,500 to $10,000 a month, depending on call volume and sales conversion rates Best for… Growing businesses Linksys Voice System 9000 Cool features: It’s a fully functioning VoIP system designed specifically for small companies. And it comes in one easy-to-use package–with VoIP phones plus all the back-end networking equipment. In action: Michael DenBlaker’s outsourcing consulting firm, Graypeak Partners, had grown to more than 10 employees, one VoIP phone line at a time. But while routing calls over the Web was cheap, it was increasingly inconvenient. Not only did the firm lack a main number, but employees weren’t connected to one another and transferring calls was impossible. “We looked like a schlock organization,” DenBlaker says. So when Linksys introduced the System 9000 in March, DenBlaker jumped. Now he has his main line, people can transfer calls or forward them to their cell phones, and it’s easy to add numbers as he adds employees. “It makes us seem like a bigger organization than we are, and it’s easy to manage,” he says. Price: $580 to $3,700, depending on the number of lines and phones

About 3520 days ago Telecom and Wireless

What’s Next: Internet Phone Service is Here

The only thing I have in common with Howard Stern (other than the fact that we are both mammals) is that we both use Internet telephone service from a company called Vonage. The Vonage service allows Howard and me to make, for $39.99 per month, unlimited phone calls anywhere in the U.S. and Canada and darned cheap phone calls to anywhere else in the world. It uses real phones and real phone numbers and is just like the service you’re used to, except that calls are routed over the Internet rather than over a telephone company’s network. Vonage is aimed at people with broadband Internet connections (primarily DSL or a cable modem) and uses a technology called voice over Internet protocol (VoIP). And it could kill your phone company. Here is what I get for my $39.99. I get a little box from Cisco Systems that plugs into the Ethernet switch on my home network, and into that I plug a telephone. I use Vonage as line three on my four-line Panasonic wireless phone system, so line three (the free one) is available on all six extension phones. If that sounds like a typical small-business setup, then you must have visited my house. The Vonage line replaces my old office phone line, saving me more on my SBC bill than I pay Vonage and making the service effectively free. (Lines one and two are for regular phone lines–a hedge.) I have a local phone number in my 707 area code, but I could have chosen a local phone number in a number of other area codes, including the oh-so-desirable 212 (just in case I wanted to pretend to have a New York office). And for editors calling that 212 number from their Midtown cubicles, it would be a local call. If I decide I want to change my area code I can get a new number in a new city for a small one-time fee. If I want a local phone number for the same phone in another area code in addition to my own, that’s an extra $4.99 per month per number. I can live without those things, but I do have, for $4.99 a month, a toll-free number. I also pay $9.99 per month to activate the second Ethernet port on the Cisco box for a fax line. That line goes not only to my fax machine but also to the Panasonic phone system, so lines three and four are VoIP. For about $55 per month, then, I have a phone line with unlimited local and long-distance calls, a fax line with 250 free minutes per month, which is a lot of faxing, and a toll-free number on which my stingy relatives can call me. And all this, of course, includes voice mail, caller ID, call waiting, call forwarding, etc. I can even get my voice-mail messages as audio files attached to e-mails sent to me anywhere in the world. But wait, there’s more! I can unplug my Cisco box in California and take it to the little house we have in Charleston, S.C., where every year I try to perfect my heat rash. I plug it into the Charleston DSL line and my business line and fax line ring there instead of in California. I could do the same thing on a trip to Japan, too, and soon even that won’t be necessary, because I’ll be able to replace the Cisco box with software on my notebook computer–so my office line will ring at my hotel in Tokyo. I can use a computer headset to take the call or, even better, by next year I’ll be able to plug a special phone into the USB port on my notebook. I completely bypass the hotel phone system. Not only am I saving on hotel charges, but my virtual phone doesn’t know it’s in Japan at all, so all my calls back to the U.S. are free. Vonage founder Jeffrey Citron also started the computerized stock-trading system Island ECN–and sold it for half a billion dollars. If your business is bigger than mine is, an affiliate of Vonage called Vontek can route the Internet phone right into your phone switch. It can even set up a virtual PBX so people working at home can all have extensions on the office phone systems no matter where they are in the world as long as they have broadband Internet service. I might never get out of bed. VoIP phone service has been around for years, but until recently the voice quality just wasn’t very good. Now, because computing power is cheaper and Internet connections are faster, it is hard to tell a VoIP phone from a regular phone–until you get the bill. One technical feature that is driving VoIP phone service is use of the session initiation protocol, or SIP. SIP comes from the world of instant messaging, where it is used to connect your teenage daughter to all of her online friends when she is supposed to be doing homework. What SIP does for VoIP is create peer-to-peer telephone connections anywhere in the world. In other words, the phones talk to each other without the need for any kind of phone switch in the middle. It is a phone system without a phone company, and the implications of that change are profound (as we’ll see). Vonage is not the only VoIP game in town, just the most visible right now. Founded by Jeffrey Citron, who started the computerized stock trading system Island ECN, then sold it to Instinet for $503 million, Vonage is spending more money and getting more exposure than its competitors. But those competitors are worth considering, too. At www.iconnecthere.com, for example, you can get a local number for your VoIP phone for only $9.95 per month. Another service, called Free World Dialup, costs nothing–but offers a lot less. The strongest competitor for Vonage on a feature-for-feature basis is Packet8 from 8X8, a California company that makes most of its money in the videoconferencing business. Packet8 does pretty much what Vonage does, but Packet8 just dropped its price for unlimited domestic calling to $19.95 per month. Can you say “price war”? Of course, this is an emerging nightmare for local and long-distance phone companies. Some of them are responding with their own unlimited calling plans, but they aren’t quite so full-featured as Vonage’s or Packet8′s. You can’t take your phone with you, for example. There is no risk of everyone swooping out and buying VoIP phones and eliminating the plain old telephone service (POTS) overnight. However, in the next five years there is going to be some serious worry at the traditional phone companies about how they will make money. All the investment in the late ’90s in Internet backbone construction (much of it by companies now in bankruptcy) is starting to look as if it might be good for something other than pornography and trading pirated music. “Big companies, which are traditionally where phones cost the most, will be the first to broadly adopt VoIP,” predicts John Todd, a VoIP consultant. “Even the slightest perception that VoIP is less reliable than normal services will cause companies to hedge their bets. However, when you can pay 30% of what you’re paying now, very often there is considerable interest in a new technology when the ROI turns positive in the first four months. For some companies that are voice-intensive, this can mean the difference between a humdrum year and a strong EBITDA positive, which perks up everyone’s ears these days.” The local phone companies, or incumbent local exchange carriers, will do whatever they can to slow the growth of VoIP, but the fact that the phone traffic is on the Internet will make VoIP impossible to stop. Vonage, for example, isn’t a phone company at all in the eyes of the Federal Communications Commission. Vonage, based in Edison, N.J., works with competitive local exchange carriers (not the local phone company) to acquire local phone numbers and interconnects in several states. You could too. There is plenty of room for more VoIP phone companies, and the cost of entry is low. For example, much of the guts of a VoIP phone system can be built on a Linux application called Asterisk, which is free. (Asterisk is interesting for reasons beyond its low price. It is an Open Source application that supports a voice compression scheme called G.729, which can cram four VoIP phone calls into the bandwidth normally required for one.) VoIP will have a big social and political effect, too, especially in other countries. Blocking SIP ports will become a way of life for many less-developed nations, as national phone monopolies struggle to keep their international long-distance cash cows alive. Law enforcement and intelligence agencies are beginning to comprehend what VoIP will do to their wiretap efforts, and they aren’t happy. Having spent $500 million to be able to tap almost any telephone line anywhere right from a computer screen, the FBI will find it hasn’t a clue where SIP phone calls are coming from or going to. Tony Soprano would have to have one. Howard Stern already does. Contributor Robert X. Cringely is a writer, broadcaster, and entrepreneur specializing in technology. Contact him at cringely@inc.com.