What is VOIP and how does it work?

VoIP phone system is a cost-effective technology that helps in conducting effective communication with employees, business associates, and customers.

What is VOIP and how does it work?

With the advent of the ongoing coronavirus pandemic more and, more businesses have shifted to the work from home culture. To ensure that the work is not affected and can be conducted efficiently it is very important for businesses to have reliable and efficient communication systems. Introducing VoIP (Voice over Internet Protocol) phone system can be highly beneficial for effectual communication amongst the employees, with business associates, and with the customers.

What is VoIP?

VoIP is a revolutionary technology that coverts voice into a digital signal. This digital signal is compressed and sent over the internet. This technology has the potential to completely change the phone systems across the world. A VoIP service provider helps in setting up calls between the participants. When the signal reaches the recipient, the digital signal is uncompressed into the sound which is heard over the handset or speakerphone. Hence VoIP enables us to make calls directly from a computer, a VoIP telephone, or other data-driven devices without any telephone services. In simple words, VoIP means a call made over the internet. It is also referred as IP telephony, internet telephony, or broadband phone service.

What is a VoIP phone system? Can you use a regular phone with VoIP?

A VoIP phone system is a call generating system which uses the internet for making and receiving calls. The system converts the sound into a digital signal, which is decoded at the receiving end back into the sound. A VoIP phone system can also convert standard telephones signal into a digital signal which can be received by a non-VoIP number. The business Voice over Internet Protocol provider’s app allows one to receive or make business calls through their personal mobile devices too. All the calls made through the VoIP will display the business number on the caller ID to the receiver. VoIP phone systems are very beneficial to businesses as they enable them to make and receive phone calls without subscribing to any telephone services. This helps in saving on the cost of making long-distance calls within the country or internationally.

How does VoIP work?

As seen above a VoIP phone system is a technology that facilitates the making and receiving calls through the internet connection instead of using a regular landline or a mobile network. The analog voice signals are converted into digital signals which are transferred as data packets over the internet connection. A VoIP server helps in connecting calls to other telephone networks with the help of a router and modem. Since VoIP places the calls over the internet, the data is stored securely in the cloud. VoIP phone systems can be controlled and managed through an online dashboard. Today all businesses pay for internet services regardless of which type of phone system they are using. With the help of Cable or fiber broadband internet connection, one can easily discontinue using the expensive services from telephone companies. Voice over Internet Protocol makes it much easier to introduce new features that are important for business needs.

Is VoIP cheaper than a landline? How is VoIP different from a landline?

Yes, VoIP telephone or phone system is much cheaper than a landline. It saves around 40 to 80% of the cost as compared to a landline system. It is less expensive as it works on the existing internet connection and does not require any additional hardware to be installed. Other than the cost a VoIP phone system is different from a landline in a number of other ways. Some of the key differences are:

  • A Landline system’s key role is to facilitate making and receiving calls. While a VoIP phone system not only allows one to make and receive calls it also offers several other services and features like having a virtual receptionist, voicemail-to-email, automatic call forwarding, etc.
  • The landlines system works on the copper wire and exchange infrastructure, whereas the VoIP phone system works on the internet.
  • Since VoIP uses packets, it can carry more information over the network for supporting and enhancing communication needs. Traditional landline systems can only help in making and receiving basic calls.

How VoIP is Beneficial for Business?

VoIP is very beneficial for business whether small or big. Just by adding voice to a data network, one can reduce the costs of operations, improve productivity and collaboration. Other than cost savings, VoIP telephones and phone systems offer several features and benefits like:

  • Unlimited Calling time. Unlike traditional phone systems, one does not have to pay for the number of minutes used.
  • HD voice quality calls.
  • Sending and receiving unlimited faxes without having to install any hardware or device.
  • Automated voice greeting recording which can be used to greet the callers.
  • Directing the calls directly to the concerned person or department.
  • Conference meetings and calls where participants from across different locations can meet and discuss.
  • Delivery of voice messages directly to an email inbox.
  • Real-Time presence can be determined; it helps in checking if a person is online and can receive calls and messages and if anybody is busy or away.
  • Group chatting feature, where the whole team can chat on one single platform or system. Video and screen sharing improves team coordination and helps in getting things done faster.
  • Send and receive text messages to team members, business associates, or customers offering quick updates or for sending reminders.
  • The integration of the VoIP system with the current CRM can help in boosting productivity.


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