How Much Does It Cost To Get A Phone Acreen.Fixed VegaStream – The Benefits of IP over TDM

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VegaStream – The Benefits of IP over TDM

Circuits in an IP network can carry more traffic than circuits in a TDM network. Strategically, delivering calls over IP costs significantly less than TDM. The laws of economics drive us inexorably towards VoIP. However, there are a number of other benefits that are particularly useful for businesses.

TDM technology has evolved over a century and was mainly developed at the behest of the old nationalized Post, Telegraph and Telephone (PTT) companies such as the UK GPO before it became BT. Therefore, the TDM network is strictly designed and very robust. We take it for granted that when we pick up a phone and press a dozen buttons, another phone will ring almost anywhere in the world. When that phone is answered, we (usually) have a clear and continuous conversation. That’s not surprising given that the multiple layers of switches and cables between the two phones create a full end-to-end 56Kbps circuit between them.

In the modern, highly flexible and mobile workspace, this marvel of technology has one drawback. You’re not calling a person, you’re calling a phone. Therefore, you assume that the person you want to talk to will be close enough to that phone to answer, or has a machine set up to take your call, or is willing to pay extra to have it redirected to another device. Meanwhile, in an IP world, you connect to the network from any IP device, and if you’re connected to the Internet, then the Internet can tell those trying to contact you where you are. VoIP will allow you to call a person rather than a phone.

The other disadvantage of a TDM connection is that the circuit has a fixed bandwidth that was originally designed to support a telephone conversation and nothing else. Data communications and fax technology are essentially technical compromises. Anyone who has struggled to surf the web on a dial-up connection will recognize this. The significant technical difference between IP and TDM technology ensures that a VoIP call makes better use of this bandwidth. Also, with the ubiquity of DSL, the Internet is now a multi-megabit broadband network, freeing itself from the 56-kilobit shackles of the TDM network. The result is that we can have much “richer” IP conversations.

These calls can include video images, instant messages and data – all on the same circuit. Voice over IP is just one application of this converged communications platform. The acquisition of Skype by Ebay is a good example of the creation of converged applications. eBay is an online auction house that provides its bidders with images and details of items for sale as well as conducting the auction on the web. Skype is an Internet telephony service. Combined, the two businesses will offer a service where someone bidding on a particular item can click a button on the screen and speak directly to the person offering the item for sale. It doesn’t take much imagination to envision such applications leading to improved efficiency and productivity in all shapes and sizes of businesses.

In summary, the three key advantages of VoIP over IP over TDM are cost, flexibility, and better, richer ways to communicate.

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