Benefits of Packet Telephony Networks

Benefits of Packet Telephony Networks

Traditionally, the potential savings on long-distance costs was the driving force behind the migration to converged voice and data networks. However, as the cost of long-distance calls has dropped in recent years, other factors have come to the forefront as benefits of converged networks.

The benefits of packet telephony versus circuit-switched telephony are as follows:

• More efficient use of bandwidth and equipment Traditional telephony networks use a 64-kbps channel for every voice call. Packet telephony shares bandwidth among multiple logical connections and offloads traffic volume from existing voice switches.

• Lower costs for telephony network transmission A substantial amount of equipment is needed to combine 64-kbps channels into high-speed links for transport across the network. Packet telephony statistically multiplexes voice traffic alongside data traffic. This consolidation represents substantial savings on capital equipment and operations costs.

• Consolidated voice and data network expenses Data networks that function as separate networks to voice networks become major traffic carriers. The underlying voice networks are converted to utilize the packet-switched architecture to create a single integrated communications network with a common switching and transmission system.

• Increased revenues from new services Packet telephony enables new integrated services, such as broadcast quality audio, unified messaging, and real-time voice and data collaboration. These services increase employee productivity and profit margins well above those of basic voice services. In addition, these services enable companies and service providers to differentiate themselves and improve their market position.

• Greater innovation in services Unified communications use the IP infrastructure to consolidate communication methods that were previously independent; for example, fax, voice mail, e-mail, wireline telephones, cellular telephones, and the Web. The IP infrastructure provides users with a common method to access messages and initiate real-time communications, independent of time, location, or device.

• Access to new communications devices Packet technology can reach devices that are largely inaccessible to the TDM infrastructures of today. Examples of such devices are computers, wireless devices, household appliances, personal digital assistants (PDAs), and cable set-top boxes. Intelligent access to such devices enables companies and service providers to increase the volume of communications they deliver, the breadth of services they offer, and the number of subscribers they serve. Packet technology, therefore, enables companies to market new devices, including videophones, multimedia terminals, and advanced IP phones.

• Flexible new pricing structures Companies and service providers with packet-switched networks can transform their service and pricing models. Because network bandwidth can be dynamically allocated, network usage no longer needs to be measured in minutes or distance. Dynamic allocation gives service providers the flexibility to meet the needs of their customers in ways that bring them the greatest benefits.