What is VoIP and How Does It Work?

What is VoIP? We’ve Got the Answers

Voice Over Internet Protocol (VoIP) is the new way of business communication. It’s a calling solution for the 21st century, precisely because it takes something traditionally analog (like phone signals) and makes them digital. The benefits for business are big.

What is VoIP?

Now that we know what VoIP stands for, lets dive into how it works.

VoIP takes analog audio signals and turns them into digital data, which can then be sent across the internet. This means that if you have an internet connection (as nearly all businesses do), you can make calls over the internet directly. Specifically, the analog audio signals are organized into digital packets. They can be sent over any network that’s compatible with VoIP, like a local area network (LAN).

There are three different types of VoIP service.

Analog Telephone Adaptor: converts existing standard phones into VoIP phones

IP Phones: a different type of phone that’s connected directly to your router

Computer-to-Computer: also called “softphones” which runs VoIP on computers, smartphones, and tablets

Because VoIP uses an internet connection rather than a phone service or landline, calls can essentially become free, and there are rarely any international or long-distance fees. There’s no phone company to send a bill to at the end of the month. You pay for the cost of internet. While there is VoIP software that can be used to coordinate these business calls, many options are available online for free.

Another benefit of VoIP (besides the fact that it can help you skirt around fees from phone companies) is that it can also transmit more information. VoIP data packets can handle more content than simple audio, which means your VoIP can allow for video conferencing, document sharing, chat messaging, and more.

VoIP is a good solution for scalability purposes, too. As the calling needs of your business grow (let’s say you need to expand the headcount in your customer service department), you don’t need to buy additional hardware or configure distribution of phone jacks or company-funded cell phones. VoIP software makes it incredibly easy to increase the number of users with no additional hard resources. VoIP is also a good solution for remote workers, which are becoming more common in business.

Additionally, VoIP uses one network. This means that all your team members are on the same network, and that your IT team only has one network to manage.

Ultimately, VoIP stands out as today’s most versatile, efficient, and cost-effective solution for managing the dynamic nature of business calls. While every business will have to determine for itself the value of VoIP, its adoption is worthy of consideration. For more information about VoIP, reach out to the business technology experts at Matthijssen Business Systems today.