What is VoIP?

Voice over internet protocol (VoIP) is a type of phone system that uses an internet connection to make and receive calls, rather than traditional landlines.
Most people consider VoIP the alternative to the local telephone company. If you have an internet connection, you can call anyone without the need for traditional, local phone service or physical copper wires. All you need is high-speed internet and a VoIP service provider to handle the calls. The best part is that you aren’t bound to a specific desk. You can use a VoIP phone number via a business phone app to turn your computer or any mobile device into a phone.

How does VoIP work?

1. Your phone connects to your switch or router in your Local Area Network (LAN).
2. When you dial a telephone number, your IP phone tells your VoIP service provider to call the other party.
3. Your VoIP service establishes the call and exchanges data packets from your IP phone.
4. Your VoIP phone converts these digital signals back into the sound you can hear.

Voice over internet protocol (VoIP) converts your voice to a digital file, compresses it, and sends it over the internet. The VoIP service provider (much like your internet service provider) sets up the call.

For phone calls, the conversation is exchanged using small data packets. The internet can send these data packets around the world in less than a second. For internet telephony, these packets travel between your phone and a VoIP provider.

Voice over Internet Protocol bypasses the telephone company entirely. Wherever you have a broadband internet connection, you can use VoIP. It’s a significant upgrade from an analog phone system.

You used to need expensive, proprietary equipment to use VoIP — but that was over 20 years ago! Today, VoIP is built upon open standards such as Session Initiation Protocol (SIP). SIP provides complete interoperability between different desk phones, conference phones, and VoIP apps.

Advantages of VoIP

1. Lower cost – Many consumers and businesses alike have realized substantial cost savings and lowered their phone bills by over 60%.
2. High-quality sound – There’s a noticeable difference in the call quality, so the audio isn’t muffled or fuzzy.
3. Advanced features – Leverage premium features to run your company such as auto attendants, call recording, and call queues. They’re often included with business phone service plans.
4. Call anyone worldwide – International long distance rates are as low as $0.04 per minute to call Mexico or $0.01 to reach the United Kingdom.
5. Business phone numbers for a remote work team – Use your phone service wherever you work. No technical setup is necessary if you work from home. The good news is that VoIP desk phones aren’t expensive, and you can even get them for free from your VoIP service provider. Plus, providers include a mobile app that you can use on your desktop or mobile device to make calls instead of using a traditional handset.