How Does VoIP Work? The Beginner’s Guide to VoIP Phone Systems
In this guide, we’ll explain how VoIP phone systems work, including all the ins and outs about making phone calls over the internet.
Even if you consider yourself a beginner or a seasoned business leader, you’ll learn everything you need to know about internet phone service.
What is VoIP?
Voice over Internet Protocol refers to the standards that facilitate 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 then 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 a VoIP Phone System Work?
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 into digital 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 a 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.
Why Do Businesses use VoIP?
For a business application, 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 service is the flexibility and professional calling features for one low price.
Instead of having a server room with an on-premises PBX (Private Branch Exchange), all you need are configured VoIP desk phones.
Don’t worry, if you have a PBX, you can still benefit from VoIP technology. We’ll get to that in a bit.
Hosted VoIP for Business
In the network diagram shown below, you can see that a hosted VoIP phone system consists of many devices, including smartphones, to provide unified business communication.
This approach is known as a cloud phone system or a “cloud PBX.” Administrators can manage the permissions and features for each employee along with more sophisticated VoIP features with an online interface.
When an employee calls a customer, they pick up the handset and dial them just as they normally would. The IP phone (or app) travels through your Local Area Network (LAN) switch and business router before reaching the VoIP service provider. From there, the VoIP provider establishes the call.
If the network path to the called party supports a digital voice signal, then the call quality is upgraded to high definition. Otherwise, a VoIP provider connects the call over the Public Switched Telephone Network (PSTN).
Using a hosted VoIP system in your business is that simple. However, for established businesses with a more sophisticated phone system, there are different needs.
If the office uses a PBX, you probably also pay for trunked telephone lines. These trunked lines handle voice calls from the PBX to the phone company—and they’re not cheap!
