Common VoIP Terms Barre VT

By Cindy Waxer

Try talking shop with your local VoIP service provider or an IP PBX vendor, and you’ll swear that you’re listening to a language other than English. That’s no surprise, given the never-ending range of acronyms and buzzwords that pass for industry parlance these days. It’s worth taking the time, however, to read between the lines. Behind the jargon are some serious pros and cons that companies need to consider when migrating to VoIP. Here are a handful of some of today’s most common VoIP terms — and what they really mean

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Audio Conferencing: Whereas traditional conference calls rely on analog telephones, IP audio conferencing uses VoIP to connect callers to a conference bridge, which is a server that lets multiple people communicate with one another via telephones, softphones or computers. IP audio conferencing relies on packet switching to move data from one point to another. But caveat emptor: Not all audio-conferencing solutions feature robust security options to protect against unwanted intruders. A VoIP network provider’s IP infrastructure should include multilayered defense mechanisms for keeping audio conferences confidential.

Bandwidth: Bandwidth measures the maximum amount of data that can be carried from one point to another over a fixed period of time (usually one second) across a network. Also known as a data-transfer rate, bandwidth is expressed in bits (of data) per second. Although bandwidth is a critical component in generating revenue, increasing productivity and satisfying consumers, companies need to carefully assess their bandwidth needs before they commit to a carrier. Furthermore, companies should bear in mind that the amount of bandwidth a hosting company can provide is determined by its own network connections. For a guide to bandwidth providers, see VoIP-News' Bandwidth Suppliers Comparison Guide.

H.323: Approved by the International Telecommunication Union in 1996, H.323 is a standard that defines how audio- and video-conferencing data is transmitted over IP networks. By promoting compatibility, this standard lets users participate in the same conference call even when they're using different conferencing applications.

IVR (Interactive Voice Response): IVR technology allows consumers to automatically interact with a company’s communications system via a touch-tone telephone keypad or voice commands using a normal phone. The system responds with prerecorded audio prompts and menus to further direct callers on how to proceed or to present them with information. Specifically equipped to handle large volumes of calls, IVR solutions are not only able to retrieve information such as credit-card balances and movie showtimes, but they can also be used to place outbound calls to deliver details on everything from scheduled appointments to overdue bills. Nevertheless, touch-tone IVR technology has been known to send consumers off the proverbial deep end. That’s why it is crucial that companies also allow customers to connect with live agents when the need arises.

Managed VoIP: With managed VoIP services, a third-party provider offers all of the equipment, software, operations facilities and technical expertise needed for a company to reap the benefits of an IP-enabled phone system without the costs, risks and headaches of an on-premise VoIP solution. Packages typically include the design, integration and deployment of IP telephony equipment and software, along with the management and maintenance of existing telephony solutions and the new VoIP network. To get the most out of a managed VoIP partnership, however, companies must establish a strict service-level agreement with a VoIP provider that guarantees a certain percentage of network uptime.

Packets: Packets consist of data that is sent back and forth when two computers communicate. Packet switching involves dividing a call into packets, which are transmitted across the Internet individually. Once all of the packets arrive at their proper destination, following the most efficient path possible, they are recompiled into the original call.

SIP (Session Initiated Protocol): A protocol for Internet telephony, SIP is a service that allows businesses that have a PBX system installed to use real-time communication technologies — including VoIP. By connecting a SIP trunk to a traditional PSTN (public switched telephone network), companies can not only communicate over IP within the enterprise, but also outside the business. What’s more, companies can replace traditional, fixed PSTN lines with PSTN connectivity via a SIP-trunking service, thereby creating a single conduit pipeline for multimedia components, including voice, video and data. As a result, a SIP-trunking service typically delivers greater cost savings and increased reliability as guaranteed by today’s SIP-trunk providers.

Speech Recognition: Speech-recognition technology allows callers to speak words or phrases that are used to control applications. Voice-enabled IVR, for example, is typically used to carry out sophisticated transactions by enabling both input and responses to be gathered and delivered via spoken words. In the case of voice processing, speech recognition is used to replace touch-tone input. In fact, experts estimate that one in three organizations are in the process of implementing some kind of speech application. Quality varies greatly, though, so carefully assess today’s options.

Switches: VoIP switches are devices that allow a company to connect multiple phone lines to one Ethernet port. This allows every telephone connected to the switch to place VoIP calls. Typically, VoIP switches tend to be less costly and easier to maintain than traditional voice devices, such as PBXes and ACDs (automatic call distributors).

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