The 3 Types of VoIP Lines for Business

By: John Shepler

Businesses large and small have been migrating to VoIP telephone technology for years now. Some are delighted with the move and have never look back. Others feel like they’ve lost something in the way of performance. The calls are often muddled and it’s hard to carry on a two way conversation. Would you believe that its the exact same technology involved? Why is it that VoIP telephony can range from excellent to unacceptable? Let’s take a look.

What’s VoIP
VoIP or Voice over Internet Protocol is a means to convert telephones into computer peripherals. The reason to do that is both to save money and enable applications that just won’t work on the old style telephone network. Network voice is a powerful tool, but can more easily be degraded that simpler analog phones.

Old School Phone Systems
Business phone lines are sometimes called POTS for Plain Old Telephone Service. They consist of twisted copper pair wires that run directly from the phone set all the way to the telephone company. Each phone has its own set of wires. Once you get more than a few phones, however, you face a mounting phone bill since the telco charges you to make internal as well as external calls.

Companies get around this by installing their own phone switches. Small systems use Key Telephone Systems where multiple outside lines are available on each phone but you can also call within the building on your own wiring. Larger companies install PBX (Private Branch Exchange) switches that manage a pool of outside lines that can be assigned to any phone as needed.

If you only have a couple of phones, each with their own line, the phone company takes care of all the switching for you. With many phones, you become your own little phone company for inside calls. That means you have to take care of all the special phone wiring and the Key or PBX switching equipment. Plus, you have to pay for multiple outside analog lines or a digital PRI trunk to get to the public telephone system.

How VoIP is Different
With VoIP, each phone plugs into your company LAN. That gets rid of the second special phone network. You still need something to switch the calls between phones. This can be a VoIP PBX or IP PBX that you have in-house. It can also be a much larger hosted PBX system from a hosted VoIP service provider. Hosted means that a specialized company “hosts” or run the system. You are one of many clients that they host. It’s pretty much like buying web hosting. You simply pay by the month for service instead of having to install and maintain your own equipment.

VoIP Phone Line Needs
All VoIP phones connect to a local network. This can be a small home office network that has only a computer, WiFi router, VoIP phone adaptor (for a regular phone) and broadband modem. Or, it can be an extensive corporate LAN that is bridged into multiple business locations nationwide and even overseas. The principles and the requirements for high quality performance are the same.

Since the network is shared with many phones and other computing devices, it take some doing to make sure that you get high performance. With dedicated analog lines, that’s the phone company’s problem. With VoIP, it’s now your IT problem.

What’s needed is plenty of bandwidth to accommodate all the phones and other devices. But that’s not enough. You need to give the voice packets priority over data because phone calls will start sounding muddled and choppy long before you notice that the file is loading slower. The network also needs low latency, packet loss and jitter to be transparent to the packets carrying the VoIP digitized phone conversations.

3 Types of VoIP Phone Lines
All analog phone lines are alike. All ISDN PRI trunks are alike. VoIP phone lines can be quite different. They range from Internet VoIP to SIP Trunks to MPLS private networks.

Using the Internet as Your Phone LIne
The low end of the market, which keeps costs low for home offices and small businesses, uses a broadband Internet service to connect to the VoIP service provider. You can share your broadband connection with a couple of computers, a WiFi router, and a few VoIP phones. You’ll need a router that creates CoS (Class of Service) to prioritize the phones or the computers will interfere with your calls. Sometimes the service provider will give you an adaptor that does this.

The advantage of using the Internet as a phone line is that it’s cheap. You probably already have broadband for your computer. The lure is to save money by “eliminating the separate phone line.” The downside is that the Internet was never designed for telephony. It was intended to reliably transport data files. There is no prioritization of voice on the Internet and most access lines, like DSL, Cable, Satellite and Cellular, are shared broadband. It’s a cost vs performance tradeoff. You may find that some calls sound perfect but others break up or sound muddled. It all depends on what else is happening on the Internet while you are making your call.

One way to improve Internet VoIP is to use a dedicated Internet access (DIA) like T1 or Ethernet over Copper. This keeps your neighbors from disrupting your calls while they download large video and software programs, but you are still subject to network congestion on the Internet itself.

Private Line VoIP Service
Companies that depend on high quality phone service for customer support and employee productivity usually sidestep the Internet in favor of something more predictable. The outside line that compares most closely to the legacy analog and PRI lines is the SIP Trunk. This is a digital broadband line, but it is a private line that is not shared with others. It’s called a SIP trunk because it supports SIP or Session Initiation Protocol, the switching system for VoIP calls.

A simple SIP trunk is a T1 line that runs from your network to your service provider. It supports up to a couple dozen simultaneous phone conversations or a combination of phone calls and Internet. The Internet service has a lower priority than the phone calls and uses whatever bandwidth isn’t needed for the phones at any given time. Smaller companies that don’t have dozens of phones find this is a great cost saver compared to maintaining separate phone and broadband lines.

Larger SIP trunks are also available for bigger companies or call centers. Both copper and fiber optic bandwidth is available to support as many calls as you need.

Voice over MPLS Networks
Major corporations generally have many business sites located around the country and even in other countries. They still want any employee to easily call any other employee without paying long distance toll charges. They also need to make outside calls to anyone with a phone.

A sophisticated solution is called VoMPLS or Voice over MPLS networks. MPLS is a private network arrangement with a regional, national or international service footprint. The network operator ensures that each paying customer has the necessary Class of Service, bandwidth and low latency, packet loss and jitter that they need for high performance.

VoMPLS works a lot like VoIP using SIP Trunks. The difference is that instead of having to run dedicated private lines among all your locations, you simply need an access line from each location to the MPLS network. This can give you a major cost savings, especially on those long international connections, while maintaining high network performance.

Are you in search of a better telephone solution, to reduce costs, increase available features or both? If so, there are VoIP telephone solutions you should take a close look at.

Is MPLS The New Telephone Network?

The telephone network, as we’ve come to know and love it, is based on incremental improvements to the PSTN or Public Switched Telephone Network. This is a copper and fiber infrastructure that switches circuits to connect analog, cellular and digital phone calls from any party to any other party. Most business phone systems have depended on or mirrored the architecture of the PSTN to connect even their in-house calls. That’s all changing, with various technologies vying to become the next solution for connecting telephone calls.

What’s prompting the change? It’s not wireless. The cellular phone system was designed to be tightly integrated with the PSTN. The earliest cell phones were analog, with TDM and other digital multiplexed protocols following. What hasn’t happened yet is the wholesale transition to packet switched voice on the wireline or wireless phone networks.

Where packet switching, notably VoIP, has flourished is on private telephone networks set up by enterprises for their own use and on connections to the PSTN through the Internet to avoid the phone company local loops.

Why is VoIP such a big deal? More and more businesses are migrating their in-house phone systems to VoIP solutions. Part of the reason is the cost advantage of eliminating the separate phone wiring network in favor of using the corporate LAN to connect computers and telephones. Another reason is to avoid long distance toll charges by interconnecting business locations on a converged voice and data network. A third reason is features. IP telephones are really more like computers than the old desk sets. They can be integrated with business applications to provide things like “screen pops” of customer information based on who is calling.

The migration from circuit switching to packet switching was originally accomplished by replacing the traditional PBX (Private Branch Exchange) with an IP PBX. Think of the PBX as a small version of the PSTN switches that handle massive amounts of public traffic. The PBX resides on your premises and does all your in-house call connections so you don’t have to pay the phone company to make a call from one desk to another. You also need the capacity to make and receive calls with the outside world, so your PBX has to connect to the PSTN through one or more outside lines called trunks.

Trunk lines are bundles of telephone lines. Most businesses need more than one outside line. They may start off with a single analog business line and add more over the years. At some point it makes sense to consolidate all those separate lines into a single digital trunk that can carry up to 24 separate phone conversations.

Just because the trunk lines have been switched from analog to digital, doesn’t mean you are using VoIP. Yes, VoIP telephony is digital, not analog. But the digital protocol used by T1 and PRI digital trunks is time division multiplexed switched circuit, not packet switched IP. With an IP PBX, you can switch to IP telephones in-house and connect your IP PBX to the company LAN so that you don’t have to maintain the separate telephone wiring. Your connections to the outside world will still by the same analog or digital trunk lines to the PSTN.

Where you really cut the cord, so to speak, is when you replace those PSTN trunk lines with something called a SIP Trunk. This is a private line connection between your IP PBX and your telephone service provider. That service provider takes the place of the local telephone company and connects to the PSTN at their end. You can still make all the local and long distance calls you want, but perhaps at a considerable cost savings.

The alternative to the SIP Trunk is the Internet. The Internet connects literally from everywhere to everywhere. It is a massive public infrastructure that economy of scale makes very inexpensive. Connecting from telephone to service provider for residential users is done using the Internet. Many small businesses have also taken this approach to minimize costs.

The tradeoff is that voice quality over the Internet varies quite a bit. It depends on the capacity of your connection plus whatever else is happening on the Internet. Traffic jams called “congestion” can degrade voice quality with distortion and delay. One minute everything sounds great, the next minute the caller sounds garbled. If it gets really bad, the call may be dropped.

Many businesses can’t stand this variability of performance. They want the same quality of phone conversations they had with the PSTN, but with the advanced features and cost savings offered by VoIP. The technical answer has been to use a private line connection between your company and the service provider. These SIP trunks can support multiple conversations, even scaled for hundreds or thousands of simultaneous calls.

The latest development is cloud hosted PBX systems. Cloud computing offers businesses the opportunity to avoid capital investments and maintenance costs in favor of paying by the user by the month to use a cloud based infrastructure. Cloud computing has been extended to include telephone service through a cloud hosted VoIP or cloud hosted PBX system. All of your in-house switching and outside calls are handled through the cloud. You have IP telephones on your premises plus a gateway device that connects through a private line to your cloud service provider.

This is great for single business sites, but does the entire setup have to be replicated at multiple locations?

Yes and no. Yes, you still need your IP phones and gateway at each branch office or other location. However, you can route your calls through the same cloud hosted PBX. Now it becomes more sensible to connect all of your locations to your cloud service provider through a MPLS (Multi-Protocol Label Switching) network rather than pay the cost of a private line for each location.

MPLS networks are privately operated, as opposed to the public Internet, and maintain enough resources to simultaneous support the needs of all of their customers. This includes class of service tagging so that voice calls get the priority they need to maintain call quality. Each location simply needs a last mile connection, such as T1 or Ethernet over Copper, to the very large MPLS network. The network takes care of traffic routing between your locations and your cloud service provider where all the switching takes place.

One excellent example of where this approach is optimized is the XO Hosted PBX service offered by XO Communications. XO is also a network operator, so they can provide both the cloud PBX and the MPLS network to connect your business locations in one optimized system. This gives you one vendor to deal with if problems ever arise.

Sounds a little like the old Bell System, doesn’t it? You deal with a single provider who makes the connections to your phones and does the switching. In this case, you have a choice of vendors and a far richer feature set than offered in the old days of phone monopoly. Today’s cloud hosted PBX systems can include your wireless phones as well as your desk phones so that you only need one telephone number no matter where you are.

MPLS is a likely candidate to become the new telephone network. It supports hundreds or thousands of customers without interference or service degradations. Of course, there needs to be a way to interconnect customers on different networks. This is currently done by routing outside calls through the PSTN. Eventually, Network to Network Interfaces (NNI) may allow larger cloud PBX providers to peer traffic so that most of your calls will be on-net and not subject to toll charges. Even the PSTN may evolve to a very large MPLS network based on VoIP technology, abandoning the analog and TDM legacy technologies that have been the standard for the last century.

Is your company interested in more advanced phone services with potentially large cost savings? If so, get prices and features for enterprise grade VoIP and cloud services now.

Why The WAN Lags The LAN

Networks are often thought of as nearly transparent to the flow of data between nodes. Corporate LANs are managed to ensure there is enough bandwidth to prevent productivity killing network congestion within the organization. But it doesn’t take long to find the real choke point in most networks. It’s the connection with the outside world, called the WAN.

The WAN or Wide Area Network differs from the LAN or Local Area Network in more than name. They traditionally use completely different technologies.

LANs are based on the Ethernet standard. Devices that connect to the LAN have standardized NICs or Network Interface Cards. That includes PCs, servers, printers and other peripherals. The most popular interface is 10/100 Mbps. That means the device will operate on Ethernet LANs running at the standard 10 or 100 Mbps speeds. The 10/100/1000 Mbps interface is becoming more popular and increasingly seen in new devices. It maintains compatibility with 10 Mbps Ethernet and 100 Mbps, also called Fast Ethernet, and adds a new speed of 1000 Mbps, also called Gigabit Ethernet or GigE.

Now, compare these network speeds with typical WAN connections. The most popular WAN service is the T1 line running at 1.5 Mbps. Larger businesses often have DS3 connections that run at 45 Mbps. Only the largest or most bandwidth-dependent organizations have higher speed fiber optic WAN connections. These range from OC3 at 155 Mbps to OC48 at 2.5 Gbps. The largest ISPs and telecom carriers may have backbones at OC-192 or 10 Gbps. Nationwide fiber optic network backbones run at OC-768 or 40 Gbps.

Chances are your business is likely running a LAN network at 100 Mbps. When you access the Internet or connect to another of your company’s facilities via dedicated point to point data line, you may be connecting over a T1 line at 1.5 Mbps. That’s almost two orders of magnitude difference. You’ll notice the difference in file transfer times. Within the walls of your building file transfers might be measured in seconds. Go outside and the same size files will require minutes.

A larger corporation might have a LAN backbone running 1000 Mbps between switches and perhaps even to the desktop. If your WAN connection is DS3 at 45 Mbps, you still have a substantial choke point for data entering and leaving the organization. It can be a significant bottleneck when running overnight file backups to a remote data center or transferring important files to a client. If your desktop computer is connected at 100 Mbps, the slowdown might be a little more than double. But if you are transferring between two servers that have 1000 Mbps connections, the slowdown to 45 Mbps is more like 20x.

So, why don’t companies just increase their WAN bandwidth to match their LAN bandwidth? The reason is cost. WAN connections have traditionally been very expensive. Management can rationalize that the company generates far more traffic across its LAN than goes out on the WAN, so that a slower WAN isn’t that much of an impediment. Well, that depends on what is entering and leaving the building. If customers can’t access your servers in a reasonable time, they’ll think your website is broken and go elsewhere. If your medical organization can’t transfer medical images in a reasonable time, staff might be tempted to shy away from electronic medical records.

Is there anything that can help this situation? Probably the most promising technology is Carrier Ethernet, also known as Metro Ethernet. Prices for Ethernet WAN connections are significantly lower in general than traditional telecom service pricing. Bandwidths that match LAN speeds of 10 Mbps, 100 Mbps, 1000 Mbps and 10 Gbps are readily available at quite reasonable pricing.

With a better WAN to LAN bandwidth parity, network performance will be much more consistent, regardless of file source and destination. That can really help productivity and encourage staff to make better use of electronic file transfers and paperless office techniques.

What will it cost to improve your network’s WAN connection performance? Probably less than you might think. Even if you don’t match your LAN speed completely, you can likely get more bandwidth for your current budget. To find out how much, check Ethernet WAN bandwidth service pricing now.