With the introduction of Cisco IOS Software Release 12.0(5)T, Cisco VoIP gateways support the codec negotiation feature. This feature provides the ability for a Cisco VoIP gateway to connect to other VoIP devices without necessarily knowing which codec is used for a call-setup. Also, this feature allows Cisco VoIP gateways to dynamically adjust to changes on remote devices. As long as the codec used by the remote VoIP device matches the capabilities-list of the Cisco VoIP gateway, the VoIP call is completed.
Since G.729 is the default codec for dial-peers, calls would use g729 by default across the WAN. However Inorder to use the local calls to use G711 we configure as I mentioned and apply the command "voice class codec 1" at the inbound dial-peers.
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