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The Impact of VoIP Telephony on Telecommunications Industry

Posted In Products Review - By Mike on Tuesday, November 27th, 2012 With No Comments »

VoIP provides voice communications at a much lower cost. Moreover, the technology of VoIP is flexible, and even though initially it did not include such quite a wide range of users, VoIP is slowly beginning to take the cake and is being accepted by an increasing number of people.

VoIP is increasingly becoming present in the world today. For instance, in 2010 VoIP services generated billions in Internet revenues in just the U.S itself. It is to be stated that as the VoIP technology is cheaper than mobile technology services traditionally being offered, VoIP could actually manage to strike quite a loss to the industry.

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Advantages of VoIP

Perhaps this was exactly the reason why the telecommunications industry didn’t want VoIP small business phone systems as part of the scene itself. It seems that the only way that the telecommunications industry can strive to get better is to cut down on the costs of voice telephony as well as provide alternate streams and choices to customers.  Alternate revenue streams are the only option out today for telecommunication companies to thrive.

Of course, people would want VoIP services rather than anything else. This is because VoIP services come at a lower cost and can be used easily. As VoIP telephony can be used to call along with a data network, one can just surf the Internet and make calls at the same time.

Still to take heart…

However, the telecommunications industry can take heart from the fact that it will still be time before VoIP telephony will actually be accepted widely. This is because cultural barriers still exist. Many small enterprises still think twice before taking up VoIP as they are prohibitive of new technology and always want to try out the tried and tested method. Moreover when you provide VoIP you need to have Internet and adequate security, which is another barrier to many. After all, without an adequate amount of security your laptop or PC might just succumb to viruses or hackers. Lastly comes the issue of connectivity. Small enterprises might face the issue of broadband, as they might find data services for all employees either a bit expensive or not required at the moment. Moreover, when a worldly perspective is taken into place, Internet connectivity is not the same all over the world. This has been a boon for telecommunications industry, as with low Internet or broadband speeds and low Internet penetration in some parts of the world, VoIP telephony would still take some time before becoming a major way for all to communicate.

The major advantage of VoIP will remain the same – that it would help one to make calls and voice communications via small business phone systems without burning any money. It is a simple application that can be used any time to make as many calls as we want! How the telecommunication industry responds to the threat of VoIP is yet to be seen, but it is unlikely that, unless it focuses on alternative streams of revenue, it can actually compete with VoIP when the time comes.

Ali Asjad is a tech journalist and blogger based in Stockholm. He has special interest in emerging communication technologies like VoIP and small business phone systems.

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