Voice over Internet Protocol (VoIP) makes it possible to place phone calls over a network. With the increase in internet speed, and its stability, VoIP has become the go-to phone service option for businesses around the world.
In this post, we’ll go over what VoIP is and how it works, and discuss how VoIP phone services can help businesses lower costs and improve communication. If you need help determining the best telecommunication solution for your business, contact us today.
What Is VoIP?
VoIP is a process that enables the transmission of voice traffic and other types of communication through a network. This allows you to use your internet connection as your phone service, instead of the traditional PSTN (public switched telephone network).
Voice over IP is essentially how two endpoints register, use security, pass along controls, and agree to talk to each other.
VoIP can also be considered the link from your desk set to your Cloud PBX, and separately the link from your PBX to your outbound calling trunks. So, making a call can actually require two VOIP paths, one from your phone to your PBX and another from your PBX to your Trunk Carrier.
Similar to office PBX (private branch exchange) systems with multiple phone lines, VoIP calls also support call forwarding, voicemail, caller ID, conference calling, call recording, and call waiting.
A VoIP phone service lets you unify communication technologies into one consolidated system. This allows team members using different devices such as laptops, tablets, and smartphones to communicate with each other effectively and seamlessly. Some VoIP phone systems support:
- Audio calls
- Voicemail to Email
- Mobile and desktop apps
- Video conference calls
- SMS texts
- Instant messaging
VoIP vs. SIP
VoIP and SIP (Session Internet Protocol) both are internet telephony terms often used as synonyms but are technically different.
VoIP is a generic term for any type of call that uses the internet as its communications medium. The actual functionality executed by these calls can vary depending on how they are implemented, with some protocols being more specific than others like SIP or H.323 which deal specifically in Voice over IP (VoIP) traffic; but all still use UDP packets to create an end-to-end talk path.
Though calls will travel across the internet, they still need a connection point and handoff. This is because PSTN carriers are in charge of translating phone numbers. When someone on a VoIP phone wants to call 555-1234 their call at some point has to go through their own carrier and a receiving carrier as opposed to just using their computer’s microphone and speaker like using an app such as Skype, for instance.
SIP is a communications protocol that can be used to set up and exchange communications sent over the internet. It provides structure for specific messages transmitted and received between endpoints. This makes business VoIP systems possible as well since it facilitates the connection of two parties using IP-enabled devices on an IP network like voice services do.
Unlike regular phone calls, a VoIP phone service call lets you transmit different types of communications like voice, text, and video to multiple devices over the internet.
How VoIP Calling Works
For traditional landline calls, a dedicated connection is established between two parties, and voice is transmitted using analog audio waves. With VoIP calling, your voice is encoded into digital data and sent through the internet. These data packets are then re-coded back into tone signals at the other endpoint.
VoIP calls are similar but instead of traversing old analog copper lines a phone call is sent through a series of networks to reach its final destination. The first step in this process, which happens before any sound can be heard on either end, requires your Desktop App/Cell Phone App or VoIP Desk Phone to speak with a Cloud PBX and then use ports 5060/1 to negotiate connectivity and security between themselves.
The internet is a vital highway between the phone, PBX, and carrier. It’s reliable because it has redundancy built-in, like a spider web, to ensure performance no matter what happens on either end of your connection.
By routing calls across the internet using these ports and protocols, each call you make or receive will traverse the internet on the fastest and most stable path available at the initiation of the call. And if a path on the internet goes down, a new call will find another appropriate path. The internet is self-healing this way.
Benefits of VoIP Calling & VoIP Phone Numbers
VoIP phone systems are becoming increasingly popular as businesses continue to migrate to the cloud. They offer a number of perks such as reliability, lower costs, and portability.
Let’s take a look at the benefits associated with VoIP phone services and VoIP phone numbers:
- Lower cost: Calling can be cheaper than traditional phones because of new routes and paths being available that the old telecoms didn’t have access to previously.
- Technology: VoIP supports digital communication channels and is compatible with the newest computer accessories, smartphones, and headsets. VoIP calling just takes advantage of local and wide area networks to get from any point to another.
- High-quality sound: If you have a strong and reliable network and internet connection, you’ll get HD sound quality and no dropped calls.
- Added functionalities: Most VoIP phone services offer additional functions than landlines by enabling users to make video calls and send multimedia messages.
- Reliability: The self-healing nature of the internet makes it extremely reliable which means you would rarely be without service.
Benefits for Your Business
Many companies use VoIP phone services for their businesses because it offers additional features and can cost less than a landline business phone system plus service.
Here are some of the reasons why VoIP phone systems can be useful for your business:
- Scaling and maintenance: With no core hardware involved, growing your phone system requires no additional cards and labor to increase capacity. New users and features can be added within minutes. This gives you the freedom to upgrade and maintain your VoIP phone service based on your particular requirements and timeframe.
- Increased sales efficiency: If you’re in sales, you can make calls from wherever you are in the field, whether it’s at a hotel, your home, a coffee shop, a co-working space, or your car while still showing the caller ID of your office. And if you have a large sales team, a VoIP phone system usually has a much larger call capacity so incoming and outgoing sales calls are not restricted.
- Unified communication across devices: VoIP phone systems enable you to unify all your communication channels which can help you integrate customer service, sales, and marketing. Moreover, you’ll be able to use a desk phone, web interface, or cell phone app all in the same manner. Features like Call History, Phonebooks, Function Keys, and Chat History are shared in real time across your VoIP endpoints.
Working with Class5 Technologies
VoIP phone services offer a number of advantages over traditional phone systems such as lower costs, complete flexibility, and reliability. They offer more scalability, mobility, and better communication features.
If you’d like to know more about how you can elevate your office communication workflow, our experts are just a call away. We’ll help you assess your current and future needs, and we’ll help you future-proof your phone system.