Ready for VoIP? Using the Internet calling is mainstream and here to stay.

• Author: Held, Shari
• Position: COMMUNICATIONS

VOICE OVER INTERNET Protocol (VoIP) technology began appearing in the mid- to late-1990s. Touted as an alternative to traditional long-distance phone service, VoIP was initially characterized by its poor voice quality, unreliability and less-than-friendly interface. It's come a long way since then.

"There has been a revolutionary change in our industry, where the technology has crossed a chasm in a more permanent sense," says Bill Dugdale, chairman of Indianapolis-based Dugdale Communications, which celebrated its 20th anniversary earlier this year. "As a technology, it (VoIP) has taken over. It is mainstream and it is here to stay."

Today businesses across the board benefit from VoIP--especially those with multiple locations, sales representatives or employees that travel extensively or employees who work from home and need access to office communication and data systems. Few businesses have gone pure IP, however. Most opt for a hybrid approach, using traditional phone service (TDM or Time Division Multiplexing) for communication with the outside world and VoIP for interoffice communication and long-distance calls.

"We've got products that fit their needs in both worlds," says Carl Batteiger, sales manager for Evansville-based Midwest Telecom Communications. "One of the systems we carry has both the old legacy technology and the VoIP technology on it. We try to mesh the two technologies together to give the best solution to a customer, because once you go totally VoIP, it is not easy to go back."

Cutting costs. "Free" long-distance service is just one savings VoIP can provide. Multiple locations can utilize one central voice-mail system, reducing hardware and maintenance costs. They can even share the same receptionist.

"Now that you are only supporting one network (for both data and voice) cabling costs are virtually cut in half, especially for new businesses or businesses moving to a new location," says Trent Smith, general manager business telephone group for Indianapolis-based Van Ausdall & Farrar, which has offices in Evansville, Fort Wayne, Lafayette and South Bend. "And cabling has gone up dramatically in the last few years as the price of copper has skyrocketed."

Changes are also easier and less costly to implement with an IP media server than a legacy TDM system.

"One of the soft costs for which a true ROI value is difficult to calculate is the ease of use," says Charity Mears, vice president communications for Indianapolis-based...