Introduction The potential of Voice over Internet Protocol (VoIP) adoption is being accelerated by the current global economic recession which has forced many organizations globally to cut back on their telecommunications expenses while increasing the duration, number and variety of calls being made globally. The primary catalysts of VoIP’s growth are its potential for cost reductions, operational improvements in organizations, convergence and business tool integration, and the development of entirely new services (Bayer, Xu, Rakocevic, Habermann, 2010). State-of-the-art VoIP systems are capitalizing on these market forces today and will continue to be adopted and contribute to the growth of enterprise-wide deployments of call centers, service centers, trading networks and exchanges, and global services organizations that are economically scalable due to the low costs of VoIP (Bradbury, 2007). In addition, mobile VoIP to support smartphones and social network integration are going to be commonplace within three years. The intent of this analysis is to evaluate how state-of-the-art advances in VoIP will impact the overall cost performance, efficiency, and global competitiveness of organizations in the next three to five years.
VoIP Technology Trends The progression of many organizations from relying on their standardized Pubic Switched telephone Network (PSTN) to VoIP is illustrated in Table 1, VoIP Technology Innovations over PSTN Platforms (Ghaffar, 2004). This table provides insights into how VoIP’s core technology advantages are redefining the enterprise-wide telecom platform and services market. Foremost among the advantages of VoIP is the ability to treat communications as packet-based instead of relying on the inherently unscalable circuit-switched based technology of PSTN-based networks. VoIP also is more suitable for point-to-point (P2P) based network integration including support for the widely tested
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