How2Day: What Are the Effects of VoIP on Today's Society?

VoIP is changing the way that telephones are used in homes and businesses. customer service image by gajatz from Fotolia.com
Voice over Internet Protocol (VoIP) service converts voice into digital signals that travel over the Internet. A standard telephone can be connected to a computer through a VoIP adapter. VoIP can only be used over a high-speed Internet connection; audio quality degrades over a slower dial-up connection, producing unacceptable results. The widespread adoption of VoIP in the U.S. and around the world has revolutionized the way that telephones are used in homes and businesses.

Digital communications over the Internet are not regulated by the government in the U.S. and most countries, as of October 2010. This lack of regulation allows for a many competing companies to offer VoIP services at lower rates than traditional phone services from telephone carriers. It also means that VoIP companies are not required to charge tax or other regulatory fees on services which standard phone companies must charge. One exception is the fee to cover 911 emergency service, which ensures that every VoIP phone is capable of connecting to emergency services and displaying the user's registered street address to the dispatcher.

VoIP has made it possible for businesses to operate in ways that would be too costly with standard telephone service. For example, the cost to place international calls over VoIP may be only a few cents or even free with monthly service contracts, depending upon the provider. Call centers around the world employ VoIP to connect clients to customer service centers in distant countries. Companies benefit from being able to pay lower wages and fewer taxes to employees in developing countries, and those employees are afforded meaningful economic opportunities.

Advances in digital communications, including VoIP, has given many individuals the opportunity to work remotely. Documents can be faxed or received over VoIP lines. Video teleconferencing allows individuals to connect for face-to-face meetings without the hassle and expense of commuting. Nortel is one company that provides conferencing services and prefers to use the term "telepresence." The downside is that the lack of business travel has had a negative impact on revenues in the travel and hospitality industries. On the other hand, service providers such as Nortel and Tandberg claim that video conferencing is socially responsible -- it reduces CO2 emissions and is a viable "green" alternative.

Olufunmilola Olorunda and Ayodeji Olorunda examined the social and cultural impact of VoIP in developing countries such as Nigeria. They report that the transition to Internet-based communications including VoIP as having enabled Nigeria to jump from obsolete communication technology to cutting-edge technology without the costs and delays normally associated with such a transition. They further note that educated people rely heavily on digital communication despite concerns involving privacy, security and frequent power outages. The lack of government regulation and the absence of monopolies controlling VoIP and other digital communication allows for faster social growth, greater personal empowerment, and reductions in poverty.

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