Overview
In practical scenarios, a T.38 fax call has at least part of the call being carried over PSTN, although this is not required by the T.38 definition, and two T.38 devices can send faxes to each other. This particular type of device is called Internet-Aware Fax device, or IAF, and it is capable of initiating or completing a fax call towards the IP network.
The typical scenario where T.38 is used is - T.38 Fax relay - where a T.30 fax device sends a fax over PSTN to a T.38 Fax gateway which converts or encapsulates the T.30 protocol into T.38 data stream. This is then sent either to a T.38 enabled end point such as fax machine or fax server or another T.38 Gateway that converts it back to PSTN PCM or analog signal and terminates the fax on a T.30 device.
The T.38 recommendation defines the use of both TCP and UDP to transport T.38 packets. Implementations tend to use UDP, due to TCP's requirement for acknowledgement packets and resulting retransmission during packet loss, which introduces delays. When using UDP, T.38 copes with packet loss by using redundant data packets.
T.38 is not a call setup protocol, thus the T.38 devices need to use standard call setup protocols to negotiate the T.38 call, e.g. H.323, SIP & MGCP.
Read more about this topic: T.38 Fax