Technical Class

Ok, boys and girls, St. Damien is in the house. Today, he'll be talking about Voice over Internet Protocol (VoIP).

Have you wondered why is calling back from US to Malaysia is cheaper than local calls? Why is it when Damien calls, the displayed number will be a local call?

In layman terms, VoIP means changing voice signals (analog) to digital signal and send them through the internet.

Traditional IDD reserves the whole phone line for you whether you are using it or not. With VoIP, you'll only use the line when you talk. In this case the line is the internet rather than the whole copper wire. When you are not using, others will be using it.

Who doesn't talk when they are on a phone call? Surprisingly, most of our conversation is silent. It's either we pause in between words or waiting for response.

Simple example:-
I want to call Ronald McDonald in the States.
1. If I'm out of the office, I use any phone to call my local office (Eg. Malaysia).
2. The VoIP system will ask what number I want to call and I'll input the number (Eg. 00123456789).
3. Malaysia Office will make a VoIP call to US Office
4. US Office will make a call to 00123456789. Hence, 00123456789 will see the US office number.
5. The call is established.

Now for the charging (please match the numbers with the list above)
1. I'll be charged for making a local call. This can be skipped if I'm in the office.
2&3. Since it is VoIP, it uses the internet. If we consider the internet as free, then this part will be free.
4. US office VoIP system will be charged for making local calls.

Obviously making 2 local calls will be cheaper than IDD call.

Now, some may ask "But how can it be cheaper than local calls?"
The amount that you are charged is based on normal user charging. Companies will make an arrangement with the local operators to get a bulk price for making calls, hence cheaper than normal calls.

St. Damien signing out.