[post on elastix.org] We all know that g711 (alaw / ulaw) is meant to sound the best. It’s uncompressed and equivalent quality to ISDN, which most businesses are used to with their traditional PABX System.

Now that’s a LOT when you think about it, considering on a standard ADSL2+ line you’re going to max out at around 5-7 SIP lines, especially if it’s a shared connection. This is where a compressed codec such as (My personal favorite) iLBC, or g729, can be incredibly cost effective, as you can load up around 15-20 on the same sort of bandwidth. When you’re a small business, that means with the right kind of QoS, you can share your ADSL Broadband connection and still have 5-10 concurrent phone calls, all happily living together.

Well that is a very good question, and that’s something that you’re going to have to answer for yourself. Lets look at some of the benefits of each:

It’s not difficult to see there could be benefits for either. If you’re looking for low-cost deployment, or over a shaky ADSL connection you can’t seem to QoS well (Or perhaps Wireless?) then iLBC is probably the way to go. If you’re doing a larger installation, or an installation for a customer then it’s worth investigating g729, especially if you’re running underpowered hardware or have a large number of Exts or lots of expected concurrent calls.

Excerpt from the article on elastix.org