Hang Up On The Phone Company Via VoIP

By Dan Hoffman and Todd Jenkins
The traditional office telephone system is a powerful tool, and essential to every aspect of running a nonprofit. Technology advances and mergers and acquisitions within the telecommunications industry have taken the simple task of picking up the telephone and dialing a number into an infrastructure and financial nightmare.

Also, many nonprofits must be lean and mobile, providing continuous service regardless of where key employees are located, whether that is a remote site or even home. A telephone system that allows field staff, telecommuters and satellite offices to stay connected to the main office and clients is a valuable asset that can greatly enhance productivity and boost the company's bottom line.

One alternative to traditional office telephone systems is Voice Over Internet Protocol (VoIP), which promises to leverage existing computer network systems and reduce overall costs while increasing the power and flexibility of voice communications.

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VoIP digitizes speech into data packets that can be delivered to an IP address. Providers such as Vonage and Skype have been providing household-level VoIP services for some time, but managing multiple lines and handsets requires more robust solutions. The technology is popular with small agencies that support telecommuters and remote workers because it allows staff to log into the organization's main telephone system -- to access advanced features including auto attendant, voice mail, and four-digit dialing -- from any location with a broadband Internet connection and a few dollars of hardware and software.

To conceptualize how VoIP works, think of instant messaging or Web-based email. Regardless of your physical location, whenever you log into your IP phone, your telephone number, like a screen name or email account, is mapped to your IP address by a central IP telephony server. Once your IP address is registered, you can make and receive calls, just as you would send and accept instant messages or email.

A staff member's connection to the VoIP system can be through the desktop telephone they've always had (with some limitations), or a specific IP-based telephone. Cisco and other vendors sell traditional-looking telephones that plug into a network jack.

The IP telephony server can be run either in-house, via an IP-PBX where the company's own IT staff is responsible for installation and ongoing support, or it can be hosted by an outsourced provider that manages and maintains all of the equipment and provides maintenance, upgrades and continuous support for the phone system.

Outsourced VoIP is a big draw for small agencies that lack the in-house staff, internal expertise, and resources necessary for operating such a complex system. Small organizations that outsource their telephone systems -- so that the installation, maintenance, upgrades, and support are supplied by the outsourced IP phone system provider -- enable valuable internal resources to concentrate on more important business matters.

The ability to work remotely is one of VoIP's major selling points for many small groups, especially those looking to attract and retain high-caliber employees or volunteers who value flexible working conditions.

Although many organizations already rely on email and online interfaces to access enterprise systems and applications, a lot of smaller organizations are missing an opportunity to achieve the same functionality with their phone systems - and more still do not give thought to integrating home office and satellite office workers and traveling employees into the company's main phone system.

VoIP phone service enables users to connect to their company's phone system over any broadband connection through a remote IP phone or an IP softphone solution, with functions such as personalized productivity features and call routing. VoIP users can also take advantage of a Webportal solution, which puts phone system features in an easy-to-use, intuitive portal. These technologies enable users to:

• Make and receive calls and check voicemail through software -- with all the functionality of a regular phone, including caller ID, transfer, intercom and speed dial (Softphone);
  
  
• Check voicemail through a Web browser, providing an easy way to manage e-mail (Webportal);
  
  
• Advanced features such as click-to-dial and meet-me-conferencing (Webportal).

VoIP is a compelling alternative to cell phones for a growing number of business travelers because it gives them the same access, interface and usability while working on the road as they do in the office, while avoiding expensive roaming charges. While latency, the lag time it took for a packet be decoded, was an early problem VoIP now commonly surpasses mobile phone service in reliability and quality, such as business continuity through redundant connections and 99.99 percent uptime and availability.

One of the greatest business benefits is the substantial cost savings VoIP phone systems delivers.

Most providers recommend replacing existing PBX systems with IP phones in an office environment. The phones can attach through existing CAT 5 network cabling, although it is common to have two sets of cabling -- one for the computers and one for the phone system. Phone numbers are no longer associated with a device -- the phone on a desk -- but rather with a person as a profile.

Each simultaneous use of the system requires a separate profile, one person using a phone at work, another at home, and a third through a laptop would only have one profile (assuming that none of the devices would be on at the same time). Shared phones, such as a conference room, each have their own profiles as well.

Typical cost for a 5- to 25-phone environment is a one time implementation fee of $1,500 and monthly costs of approximately $600 for the T1 line and $50 per user profile. The T1 line is also available for general Internet access.

Whether it's a receptionist working from home, a program director traveling to another state, or an entire office shut down because of a fire or natural disaster, VoIP phone systems provide the flexibility, business-enabling features, and cost savings not available with traditional phone systems and allow workers to stay productive anytime and anywhere. This technology has the potential to make small businesses appear just as reliable, accessible, and service-oriented as their larger enterprise counterparts.

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Dan Hoffman is president and CEO of M5 Networks (www.m5net.com. Dan Todd Jenkins is with Stevens Communications (www.stevenscom.com).