Communication plays a pivotal role in the functioning and development of a business. Whether it’s with clients or co-workers, having an effective communication channel is mandatory. Gone are the days of conventional landline telecommunication. High definition (HD) phone calls are possible using an internet connection that almost every business and company have. You must have heard the term ‘VoIP’ but unsure what it is and how it works. Let’s discuss the details about VoIP and how it works in this article.

What is VoIP?

VoIP refers to Voice over Internet Protocol. It is a technology that uses an internet connection instead of a telephone company to offer telecommunication. The voice information gets compressed into digital packets and transferred via the internet connection to the other end. The receiver will then receive the uncompressed data in the form of sound through the phone receiver. A VoIP service provider overlooks this process of information exchange.

People prefer using VoIP phone systems because it does not cost them additional money on a separate telephone connection. Since the technology uses the internet to establish telephonic communication, long distances calls are also cost-effective and better.

How does a VoIP phone system work?

As mentioned above, a VoIP phone system uses internet connectivity to establish telephonic communication between two parties. As long as you have an active internet connection that includes a router and modem, you’re good to use VoIP service. The configuration of a VoIP system comprises a SIP server and a desk phone. People can also use their smartphones, laptops, and desktops instead of desk phones, provided they have the VoIP application installed. The SIP server is the VoIP service provider of your choice. VoIP services are far better than a conventional telephone line and have many advanced features as well. Communication from the VoIP system is swift, and you can connect to either landline, mobile phone, or to a computer that uses a VoIP phone system. Since the communication occurs over the internet, all your VoIP data stays secure in cloud storage.

VoIP phone system for business

Whether you want to install a VoIP phone system for a small business or a large company with many employees and branches, it works efficiently in any scenario. However, choose an appropriate internet plan in terms of speed and data limits according to your requirements. You can expect professional calling features, all at one price, instead of spending too much on telephone bills.

Hosted VoIP for business

If you wonder how a VoIP system would establish a connection with your client or customer who uses a conventional PSTN connection, here’s how it works. Your employee picks up the VoIP phone similar to the standard landline telephone and dials the customer’s number. The VoIP phone or app then sends a signal to the VoIP server using your local area network, and the VoIP server initiates the call. And if the receiver’s network supports digital voice signals, the call quality switches to high definition (HD). However, if that’s not the case, the VoIP establishes a standard call to the receiver’s PSTN connection.

Smart Phones and Wi-Fi connectivity

We can say that we have transcended to a wireless world recently. From telephone connections to earphones and charging devices, everything is wireless and on the go. That brings us to the question of whether using a VoIP phone system on smartphones over Wi-Fi connections is swift or not. Internet accessibility has increased the number of smartphone users. It has also helped companies operate remotely, especially since the COVID-19 pandemic last year. More companies are promoting remote working, and VoIP technology works just fine in such cases. Using VoIP on smartphones even in the workplace is a cost-effective measure, especially for small businesses and startups, as they don’t need to purchase VoIP desk phones.

Using an existing analog telephone for a VoIP system

If you wish to use your landline telephone to avail of VoIP service, that is possible too. All you need is an Analog Telephone Adapter installed on your landline, enabling you to connect to the VoIP server and make calls from your internet connection. However, to achieve better quality and efficiency, it’s better to use a SIP phone since its primary function is VoIP calling.

Benefits of using VoIP Phone System

1. Unlimited Calling: No more worrying about the calling minutes and telephone bills since, with VoIP phone systems, you can get unlimited nationwide calling.

2. Auto-attendant: Have an IVR greet your callers and transfer them to the concerned department or team for further assistance.

3. HD call quality: Say goodbye to annoying static noises and poor call quality since VoIP technology supports high-definition calls.

4. Conference Lines: Telephonic conferences become smooth and efficient. You can make a conference call with nine people using the dedicated conference line and even record and moderate the entire conference meeting.

Final Thoughts

That’s how a VoIP phone system works. Hopefully, the information helped you understand the functioning and requirements of a VoIP phone system. Having a seamless and efficient communication channel for the customers and clients will help you immensely in running the business smoothly. Few factors to consider before choosing a service provider include reliability, initial and monthly expenses, customer reviews, the usability of products. So do your research and pick the provider that suits your requirements.