What is VOIP?

A Voice Over Internet Protocol (VOIP) is a technology that allows you to make voice calls using a broadband Internet connection instead of a regular phone line. This allows you to make calls using your computer, phone, or any other VOIP-enabled device. VOIP is a better alternative to traditional phone lines because it offers businesses and consumers more functionalities and easier use. Since VOIP uses the cloud, it gives users advanced functionalities like call recording,  call forwarding, and caller ID.

How does a VOIP work?

VOIP works by converting your voice into digital signals and then transmitting those signals over the internet. On the other side, the receiving end converts the digital signals back into voice form, allowing you to talk to the person on the other side of the line. The entire process happens in real-time, making it seem like you are talking to the person on the phone even though you are using the internet. 

A VOIP works in four simple steps:

1. Your phone will connect to a router or switch in your LAN (local area network)
2. Your IP phone tells your VOIP provider to call the other party
3. The VOIP services establish the call, and you exchange data packets from your phone
4. Your IP phone converts these data packets into sounds that you can hear, and you can communicate easily with the other party. 

To use VOIP services, you will typically need a broadband internet connection (DSL, cable, etc.) and a computer/phone. These are the core equipment needed to perform a call. You can also use other devices for additional features for your VOIP service. You can have VOIP services offered to you by your managed service provider. 

Benefits of using a VOIP for businesses

There are several key benefits of using VOIP services for businesses. Some of the benefits include:

• Cost savings: VOIP  is typically much cheaper than traditional phone lines. This is because you are using your internet connection to make calls, so you don’t need to pay for a separate phone line. Nextiva reported that cost savings could be up to 60% for businesses that switch from traditional phone lines to VOIP. 
  
  
• Flexibility: Businesses can easily scale up or down their VOIP services to match their needs. Since VOIP uses the cloud, you will only be charged based on your usage instead of signing a contract that locks your pricing in. This added flexibility enables businesses to pay only for the use and scale their phone operations up or down based on their needs. 
  
  
• International calling: VOIP rates are often some of the cheapest to make calls internationally.  Most business VOIP providers offer flat-rate calling to many countries. This can help you save a lot of money if you frequently make calls to your business' international locations. 
  
  
• Remote-friendly: VOIP services are especially helpful for businesses with remote employees. With VOIP, location doesn’t matter as long as there is an internet connection. This helps businesses connect with employees who telecommute or work from remote locations. There are also advanced features like auto attendants, call recording, and more to facilitate remote work. 

These are just a few of the benefits of using VOIP for your business. Think your business is ready to switch to a VoIP System? Download our Free Report on Choosing the Right VoIP System by clicking below.