What is VoIP and How Does it Work?

Short for Voice over Internet Protocol, this kind of tech launched on the internet in 1995 and has changed the very way that we communicate with people. From beginners to seasoned business leaders, it’s crucial today to get an understanding of this technology, how it works, and how businesses can use it.

What is VoIP?

Voice over Internet Protocol is basically a set of standards that facilitate voice-based phone calls via an internet connection over a local telephone company. Modern versions of this can be seen through Apple products where people can receive and answer calls from their laptop or desktop if they have an Apple smartphone.

That system works because VoIP converts voices into digital signals, compresses it, and sends it through the internet. There are VoIP service providers that set up calls between people. The sender sends this compressed data through and the service provider would send it over. On the receiving end, the data is uncompressed into the sounds that people would hear through either a speakerphone or handset.

Why people use this technology is that through VoIP, it allows communication even with a telephone service. This saves people from long-distance charges. As long as the internet is accessible, running extra copper wires would be unnecessary and employees could work from home or telecommute to offices as well.

How Does VoIP Actually Work?

So how is VoIP able to do any of this? After all it started in 1995 and since then, there have been several technological leaps and bounds. Why has it only been in recent years that this technology has become modern mainstream?

A VoIP phone system is a piece of technology that’s used to make phone calls through internet connection over the typical landline or mobile networks. In order for that to happen – along with the conversion of voice to digital signals – a VoIP server is needed and must be connected to other telephone networks.

What this means is so long as there is a high-speed internet connection, that includes a router and modem, a VoIP can be used.

VoIP configurations involve a desk phone and a SIP server. That server also serves as a VoIP service provider. The SIP server is better than traditional landlines because it offers more features that standardized landlines can’t provide.

These days, VoIP servers store the data securely in the cloud, making it safer than traditional calls. VoIP systems can also be managed through online dashboards. There, dashboards can allow users to manage contacts, business numbers, forward calls, and add phone numbers.

Due to modernization, businesses can use this system to cut out costs from telephone companies. Furthermore, they can rely on internet phone services instead since most businesses are connected through cable and fiber broadbands. Businesses can also add new features that might be needed freely.

Why Should Businesses Use VoIP?

Aside from saving money, businesses should consider using VoIP for several reasons:

  • It provides reliable phone services that allow businesses to customize the service they want.
  • VoIP as a technology has outpaced the traditional phone services that people use. It provides the flexibility, professional calling features and it’s offered at lower prices than any telephone company.
  • Setting up VoIP is easy. Configure every desk phone easily.

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