Most basic networking equipment will use FIFO queuing for packets waiting to go through the bottleneck and they will drop the packet if the queue is full at the time the packet is received.
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Video quality assessment tools based on network quality metrics such as packet loss, MDI and PSNR do not correlate well with a perceived visual quality due to the nonlinear behavior of the human visual system.
The founders recognized that, at the time, most VoIP solutions were using existing technology developed for circuit switched networks, and were therefore not properly suited to handle the delay, jitter and packet loss presented by IP networks.
Latency (audio), Jitter and Packet loss in everyday web-browsing does not significantly degrade the user experience however, in voice systems, even minor issues affecting the smooth and predictable flow of sound can be picked up easily, leading to a poor impression of the service.
It is a lossy speech compression codec designed specifically towards communication channels suffering from packet loss.