Alarm Signal Transmission Methods: Internet-Based
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VoIP (Voice-over-Internet Protocol):
The industry concensus is that VoIP is not a good communication method for security system transmissions. VoIP uses your internet connection to place voice calls digitally, but alarm systems are designed to send signals over an analog phone line. The signal needs to be converted to digital and then back to analog. The signal ends up arriving at the monitoring station with errors, if it arrives at all. Be warned that VoIP companies will not warn you about this if you decide to replace your old phone system.
Bottom Line On Internet Monitoring:
Pros: You could potentially drop your landline if you have confidence in this method; Control your security system from any location in the world that has internet access; Use your existing internet service; Option to add cameras that you can view remotely.
Cons: Technology still not proven 100%; Your cable line could be tampered with or cut (similar to your phone line); In some cases, you will need to install and program the equipment yourself; Power failure issues.
We cover VOIP and home security monitoring in much greater detail here: VOIP and Security Systems.
Summary
Despite technological advances and the risk of line tampering, standard phone lines are still king as the primary communication method, but today they are usually installed with either a cellular or broadband backup module. The advantage to this is thieves are also aware of it, meaning they know a simple line cut is probably not going to make their job as easy as it once did.
If you do decide to venture into the new technologies as a primary communication method for your alarm system, talk to the professionals. Several of them. And ensure that the central monitoring stations they deal with can support your decisions. But no matter what method you decide upon, do yourself a favor and test the communication pathways regularly. (Usually you just have to call the monitoring station and ask them to put your system on "test".) And stay informed.

Broadband/IP (Internet Protocol):
As with cellular, few alarm panels have broadband/IP support built-in. Again, it is usually a separate module that plugs into your control panel. An internet module with its own battery backup that takes advantage of existing internet service is usually around $400. This module provides encryption, ensuring your alarm signal can't be hacked. If you use your existing internet service, there is no monthly overhead involved.
Another benefit of this type of system is that since the panel is now on the internet, you can remotely log in and control your system from any location with internet access.
Similar to cellular, broadband or IP communication is still mainly used as a backup communication method. Quality of service is still an issue. If you've ever had your internet connection go down or had a video you were watching suddenly freeze, you'll understand why. And while the control panel and module each have a battery backup, your internet connection usually doesn't, so power outages are a problem. Once again, the standard phone line method tends to stay the primary.
Above:
Internet monitoring allows you to control your alarm system from anywhere in the world with internet access.
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