VoIP guide: Voice over IP in Australia

By Ian Grayson on 20 July 2009

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What is VoIP and how does it work?

If you find yourself groaning every time you open your monthly telephone phone bill, there's a technology that can help you to significantly slash those hefty call costs.

Since it first appeared in the mid 1990s, VoIP (Voice over Internet Protocol) has been used by growing numbers of people to avoid pricey phone calls. It does this by sending calls over the internet rather than traditional phone networks.

Making use of the internet in this way means the cost of calls can be significantly below that charged by phone companies. In some cases, calls can even be free.

The technology underpinning VoIP was initially developed in the late 1970s, but it took almost 20 years to evolve from a computer novelty into a household service. It's now used by hundreds of thousands of people every day.

VoIP works in a relatively simple way. Each time you make a phone call your voice is converted into a stream of data. Then, rather than being sent over the phone network, this data stream travels over your broadband internet connection.

Each data packet is labelled with its destination address (the person you're calling) and moves through the internet in the same way as web pages and file downloads. When they get to their destination, the packets are reassembled and converted back into sound waves. When you have this process happening simultaneously in two directions, you've got a phone call.

If the person you're calling is also using a VoIP service, your call will remain on the internet for its entire journey. However, if you're dialling a conventional phone, the call will be carried as far as possible over the internet before being handed back to the relevant phone network.

Most VoIP services also come with an allocated landline phone number which allows other people to call you. In these cases the call will be routed to the nearest handover point (called a POP or point of presence) and then travel over the internet to your VoIP phone or computer.

The benefits

Cost
The biggest benefit of VoIP can be summed up in a single word: cost. Because VoIP service providers avoid carrier phone networks, they're able to keep their charges for calls very low. In fact, if you're calling someone who uses the same VoIP service, the call is likely to be free.

Local and national calls tend to be offered for a single per-call charge, rather than being time based. This is achieved by carrying the call over the internet to the local area of the person being called before handing it back to the phone network. That way it's treated as a local call by the phone carrier.

International calls are typically charged in increments of cents per minute. Some VoIP service providers even offer all-you-can-eat international calling plans to selected countries.

Features
As well as cheap calls, most VoIP providers also offer a smorgasbord of included features. This is possible because VoIP calls are essentially a stream of data and can therefore be processed and stored in a range of interesting ways.

For example, many VoIP providers offer a free voice mail box that can send you an email alert each time a message is left. Other features on offer include caller ID, caller blocking and call diversions to another nominated phone number.

Some service providers also offer three-way calling, where you can set up a mini-conference call with two other people, as well as do-not-disturb and follow-me functions where calls divert to another number if not answered within a pre-determined period of time.

The end result is a telephone service that can be far more flexible than a traditional offering, and is comparable to sophisticated business systems costing many thousands of dollars.

Topics: australia, guide, explained, telephony, voip, voice over ip, skype, engin, mynetfone, gotalk

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Comments (61)

  • Timo commented on 15/11/2009 08:25 Report abuse

    We have been having amazing success with our new product video phone
    Launched 3 weeks ago in Australia and already in the USA and UK and about to goto New Zealand in the new year
    Voip tech which is brilliant. Plug and play straight to a Broadband modem/router. Service cost $23 a month and has unlimited
    local, unlimited national, unlimited to another video phone (free calls). We can send one to anywhere in the world and plug it into
    the internet and providing there is a good upload speed perfect video conference calling. Device has audio and video output
    so widescreen tv is possible making it the newest and best voip device on the market today.

  • Renold commented on 06/11/2009 19:19 Report abuse

    I onley use magicjack becouse they have the best price and i even got a US phonenumber for free and I can call usa and canda for free whit the best sound.
    I found mine magicjack from VOIP Marketing & Sales and they also had great service to help me and fast shipping.

  • LeighE1 commented on 26/10/2009 11:37 Report abuse

    Timo, please tell me more and where you are with this service.

    send detail to leigh@ewart.biz

    Regards Leigh

  • penny commented on 11/10/2009 00:57 Report abuse

    Pennytel customer support is the waste I have experienced todate

  • Zappy commented on 02/09/2009 15:36 Report abuse

    I use Neighborhood Cable, I'm in Geelong that's in Victoria. I love the service. I only use it very infrequently since I have a capped mobile plan but I have enevr had any problems with it AND IT'S CHEAP. I own Telstra (I used to own Singtel as well) but I would not recommend Telstra to anyone after seeing how they operate. They are expenive and they just do not care about home accounts or small business.

  • Terence commented on 28/08/2009 14:21 Report abuse

    Anyone using MyNetPhone VoIP service? Any comment on this provider?

  • Timo commented on 06/08/2009 11:30 Report abuse

    Brilliant, video voip phones (iris 3000) launch in Australia 17th August
    with a voip service included. plug and play, no computer needed. Just need a broadband modem.Tests from the UK to Australia with an adsl upload speed of 256k have been brilliant with picture quality and lag far exceeding anything we have seen. able to plug in to wide screen tv. Excellent conference calling tool
    Timo
    http://www.spot-on-computers.com

  • Skinshine commented on 05/08/2009 00:25 Report abuse

    Technically certified i like the way this big project works and absolutely customer are really enjoying it very well.

  • Ni commented on 29/07/2009 20:30 Report abuse

    I am doing a project on VoIP and i would like to know of any company that uses VoIP..How they use it?and how it benefits there company.
    Would appreciate if you could help me
    Thanx
    Nilma

  • voip_convert commented on 21/07/2009 12:52 Report abuse

    I have been using VOIP now for about 3 months (through iiNet's Naked DSL) and I have had no problems what so ever and more importantly I have literally halved my landline/internet bill. When I'm at home I use my landline to call other landlines (as calls to all Aus landlines are free) and I use my mobile to call other mobiles, managing my landline/internet service in this way means my landline/internet bill will never change. The quality of the calls, in or out, are no different to the quality of normal telephone calls. In addition to the obvious savings (line rental, calls, etc) caller line ID is also free (I think you have to pay $6 for the service to a phone company). Overall, I would highly recommend VOIP, especially for savings.

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