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OCR: Sagital telephone Digital voice Digital noise pulse code Titerret OF prigiLes Handset office swr cut To gateway IP packets IP Telephony. Analog voice is converted to digital signals by a coding/decoding (codec) device, which typically produces Pulse-Code-Modulated (PCM) digital streams. The codec may be in a desktop telephone, a PBX, or- in the case of residential phone service-at a phone company's switch facility. An IP telephony gateway converts the digital stream into IP packets, which are routed using standard Internet methods and then converted to digital telephone signals by a gateway at the call destination. In practice, most of today's gateways also contain codecs.