Important Facts of VoIP Gateway you Need to Know

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Important Facts of VoIP Gateway

If you are looking forward to doing wholesale VoIP business, there is no alternative to knowing VoIP. It is an important factor in the VoIP industry and it can make your business successful. In a country like Bangladesh, many have the capital and labor to run a wholesale VoIP business. Yet, they lack confidence as they don’t know what VoIP gateway is. 

In this article, we are going to discuss the important facts of VoIP gateway that you need to know. 

What is VoIP Gateway?

The gateway that follows the Voice over Internet Protocol or VoIP to convert TDM (Time Division Multiplexing) telephony traffic from the PSTN into a digital packet or IP packet is called VoIP gateway. All this will be done over a high-speed internet connection.

The VoIP gateway offers more advantages than the traditional telephony service. It not only allows you to make internet calls at lower price rates but also features voicemails, call recording, messaging, and video conferencing.

The Work Process of the VoIP Gateway

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Source: Inaani

The VoIP gateway works in a simple way. In order to work, VoIP gateway needs a decent amount of traffic. When the VoIP gateway gets enough traffic, it begins to convert traffic into an acceptable form, according to the origin. 

After that, this convenient form of traffic is received by the destination network. If the traffic generates from PSTN (Public Switched Telephone Network), the VoIP gateway converts the analog voice signal into a digital one. And that is how the transmission of the digital signal takes place after using a suitable signaling protocol. 

To continue this transmission process, more digital signals need to be converted into a series of packets. In order to have a proper workflow, a codec and protocol are also necessary. However, it is important to ensure both the protocol and codec are compatible with the VoIP phone system.

The Features of VoIP Gateway

The Voice over Internet Protocol or VoIP offers many features. All these features make this protocol demanding for many types of businesses. We will talk about some of the features below – 

  • One of the most prevalent features of VoIP is compressing and decompressing voice and fax.
  • The built-in routing functions in VoIP gateways make them adaptive to receive calls from one medium to another.
  • A typical VoIP gateway can connect to multiple endpoints in the existing VoIP system.
  • It helps to share the resources of PSTN with multiple IP communication systems.
  • With the help of transcoding, these gateways are able to convert VoIP calls from one codec to another.
  • Advanced VoIP gateways are needed for soft switches, billing systems, and network management. 

Types of VoIP Gateways

There are basically two types of VoIP gateways, one is the analog gateway and the other is the digital gateway. Let’s see what they are –

Analog Gateway       

To connect the traditional analog telephone gateway to a VoIP phone system, or to connect with a PSTN; the analog VoIP gateway is necessary. As a matter of fact, there are 2 actions that will be performed here. So, the analog VoIP gateway comes in two types; they are – FXS and FXO. 

In order to connect the traditional telephone system to a fax machine, the FXS gateway is required. On the contrary, the FXO gateway connects the telephone system to a PSTN line.    

Digital Gateway

This type of VoIP gateway connects the traditional phone system to digital voice lines. It is also needed to connect PBX systems to IP networks.

Both digital and analog VoIP gateways are similar in terms of functionality. They only have one difference, which is – each of these gateways uses different interfaces to connect various types of components.

Interested on VOIP business ? Then you can read this post too,
How To Start A VoIP Business in 2021 – 8 Best Steps

The Pros and Cons of VoIP Gateway

Now that you have known what a VoIP gateway is and the types of VoIP gateway, let’s take a look at the pros and cons of the VoIP gateway. 

Benefits of VoIP Gateway 

  • Compared to the traditional telephony system, the VoIP gateway allows you to save more money.
  • Unlike the traditional phone system, the VoIP gateway is easy to set up.
  • A VoIP phone call has increased mobility than a traditional call as you can make a VoIP call wherever there is a reliable internet connection.
  • VoIP is great for business. It can make automated call attendants, record calls, record conferences, make call bridges, and do other things without the need of an operator.
  • VoIP enables a larger customer base so that you can have a conference with employees at different locations and different time zones.
  • The integration with cloud business service is possible with VoIP gateway. But that will require an extra charge.
  • Additional features like Android and iOS applications for your smartphone to manage call screening are available. It depends on the company policy.
  • Before, calling the emergency service through VoIP gateway was a problem. But now, E911 or Enhanced 911 service has solved this issue.

There is no doubt that the benefits of VoIP gateway are more than its drawbacks. Soon, it will take over the traditional calling system. That is why Jeff Thompson said –  

“VoIP has really changed the way we do business.”

—Jeff Thompson (Associated faculty in the Princeton institute)

Drawbacks of VoIP Gateway 

  • Internet connection depends on the power of the house or place of business. If there is a power outage, there will be no internet connection. Then, making VoIP calls won’t be possible.
  • When there are interruptions associated with the broadband connection, you will experience poor sound quality and latency.
  • VoIP is easily vulnerable to hacking and viruses. However, developers are working on it for better VoIP encryption.
  • VoIP depends on the processing power of the hard drive. If it is a poor one, then you’re likely to face poor connections or even technical difficulties.

All these drawbacks can be outweighed by the advantages if your internet connection is reliable and high-quality.  

Important Facts of VoIP Gateway: Useful Tips – 

You will be very amazed to know the following fun facts about the VoIP gateway – 

  • The first VoIP call was made at a speed of 16 kb/s over the ARPANET, which is a military network.
  • The plan of developing VoIP came into the minds of a couple of gamers who want to talk to each other while playing games.
  • Because of a simple setup without requiring any physical hardware, VoIP can save businesses up to 90% of the cost. 
  • The quality of VoIP calls is significantly better than the PSTN calls.
  • You don’t have to have actual phones to make a VoIP call. Any device that connects to the internet connection is able to make VoIP calls.
  • Along with many businesses, organized crime is attracted to VoIP for having confidential conversations.
  • Modern social media is inspired by the VoIP system for managing ads. Because there were times when VoIP showed ads before making calls.

Our Verdict

We can never thank IoT enough for blessing us with the VoIP gateway. It has created ample opportunities for young entrepreneurs. And with the advancement of technology, the use of VoIP will rise. As a result, more opportunities will be revealed. 

We hope we are able to give you some valuable information about VoIP. If you are interested in opening a wholesale VoIP business, then this article should have helped you in a lot of ways. 

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