How is VoIP different from regular phone service?

From Bandipedia

VoIP, particularly business class VoIP, is different in several significant ways from traditional phone service.

First, of course, there is the way that VoIP works. Rather than using the infrastructure of the Publicly Switched Telecom Network, voice conversations become IP packets and are sent over the Internet, much in the same way as the data packets that make up e-mail or web files. For more on the technical make up of VoIP, click here

Second, there is the cost. VoIP can save a business owner 30-40% over traditional analog service. Price continues to be the number one reason for businesses to transition to VoIP. It is important to note that the cost savings of VoIP goes beyond the net savings on a monthly bill for local and long distance. A total cost of ownership analysis must include the savings on the PBX and it's maintenance.

Third, there is the predictive billing. Business class VoIP plans often include unlimited voice plans at a fixed monthly price. Call detail records are still available, but long gone are the days of the 750 page phone bill, the swings in monthly invoices and the need to reconcile calls and charges.

Finally, the reason why business class VoIP will be most effective over the long run is that as voice becomes packetized, it effectively becomes an application, and features not possible with traditional voice (save for some features associated with the highest end of TDM PBXs) become available for businesses of all sizes. In addition to the class 5 features (4 digit interoffice calling, call forwarding, conferencing etc.) that you'd expect from a traditional voice system, business class VoIP allows for the following features:

• User Portals: Each employees gets their own web based portal, with an interface that allows them to program personalized call treatments, access voice mail, change outgoing messages, program the buttons on their phone, and import their contact lists from Microsoft Outlook.

• Unified messaging: Allows a user to receive voice mail as e-mail in .wav file format. This feature makes it significantly easier to review a long list of voice mail upon a return from a trip and since the voice mail can be listened to in a traditional media player, it becomes easier to play, rewind and fast forward. Unified messaging allows for the easy forwarding of voice mail as an e-mail with an attachment.

• Find Me/Follow Me: Business VoIP users can determine how they are reached and by whom. This feature is best thought of threw the perspective of a salesperson. During busy times, unknown callers might get forwarded straight to voice mail, while at the user might determine that calls from VIP customers, as entered into the user portal, can ring through to the desk phone, then the cell phone, and then (if the salesperson desires) through to the home phone. Or, the sales person might elect to choose simultaneous ring treatment, and the user can instruct the system to have important calls ring at the office, their cell and home phones all at the same time.

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