What is VoIP?

Voice over Internet Protocol is the standard that facilitates voice-based phone calls using an internet connection instead of a local telephone company. Voice over IP converts your voice into a digital signal, compresses it, and sends it over the internet. A VoIP service provider sets up the call between all participants. On the receiving end, the digital data is uncompressed into the sound that you hear through your handset or speakerphone. People opt for VoIP because they can make phone calls without any telephone service, which saves them on long-distance charges. If you have Internet access, you don’t need to run any extra copper wires. This lets employees work from home or telecommute to the office as well.

How does VoIP phone system work?

How-VOIP-works
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A VoIP phone system is a technology to make phone calls through your internet connection instead of a regular landline or a mobile network. A VoIP system converts analog voice signals over your broadband connection. A VoIP server is used to connect calls to other telephone networks. As long as you have a high-speed internet connection, which includes a router and modem, you are ready to use VoIP. A typical VoIP configuration involves a desk phone and a SIP server, which is typically a VoIP service provider. It works even better than your traditional landline phone because it offers many more features than what analog phone service could ever provide.

There are three typical hardware configurations used to make a VoIP call

VoIP using an ATA

VOIP-Using-ATA
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VoIP using an IP Phone

VOIP-Using-IP-Phone
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VoIP connecting directly

VOIP-Connecting-directly
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Why do businesses use VoIP?

VoIP is an ideal solution to provide employees reliable phone service, and it won’t cost you all that much. One of the top reasons VoIP has far outpaced traditional phone services is the flexibility and professional calling features for one low price. Instead of having a server room with an on-premises PBX, all you need are configured VoIP desk phones.

VoIP system features

Cost-saving features are a major reason why your company should switch to VoIP phone services. Here are some great features that VoIP phone services offer:

  • Lower Cost
  • Connect Multiple Offices
  • Broadband Internet Services
  • Save on outdated phone systems
  • Need for scalable technology
  • Overcoming Geography
  • Unified Communications

What are the benefits of switching to VoIP?

VoIP offers a number of financial benefits when compared to a local telephone company’s service, but three stand out the most for companies with call centers, a large office workforce, or growing long-distance bills.

Reduce phone charges

VoIP uses the Internet to conduct voice calls, it can establish connections to anywhere in the world without incurring the same charges you would expect from traditional phone services. Calls made within the same service provider’s network or landlines, calling costs are typically much lower than traditional phone services.

Increased Productivity

VoIP increases workers’ productivity by integrating voice calls with unified communications, cloud collaboration platforms, and business intelligence applications.

Better Scalability

VoIP can be scaled up as a business grows much faster at less cost. Traditional phone systems require equipment installed on-sited to support the number of users at a location.

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