VoIP Phone System Explained - How VoIP Works?
Brief History of VoIP
The first VoIP phone system was introduced by an Israeli businessman Alon Cohen. In 1989, he laid the foundations of VocalTec Communications Inc. Later on; he invented the audio transceiver, which proved to be the bedrock of future VoIP phone systems. This transceiver laid the early framework of VoIP. Later, in 1996, VocalTec introduced the world’s first VoIP app named internet phone. And thus, VocalTec is hailed as the pioneer of the VoIP phone system.
We’ve expanded this guide to take a closer look at what you need to know about Voice over Internet Protocol. We’ll cover everything you need to know, including the benefits of VoIP phone service.
What is VoIP?
How to Setup VoIP?
An analogue telephone adapter is equipped with a modular phone jack or a cable modem that connects it with the network through the internet. Ethernet and wifi are used to establish the connection between the internet and the telephone.
- The VoIP apps convert analogues signals to digital signals and transmit them over the internet via a cable modem. The modem at receiving end receives the signal, and the VoIP app converts these signals back into the original movements. Some state of the art VoIP apps like Whatsapp uses user-to-user encryption technologies that ensure the security of the data transferred among users. These apps are available for both smartphones and computers.
In four steps, here’s how VoIP works.
- Your phone connects to your switch or router in your Local Area Network (LAN).
- When you dial a telephone number, your IP phone tells your VoIP service provider to call the other party.
- Your VoIP service establishes the call and exchanges data packets from your IP phone.
- Your VoIP phone converts these digital signals back into the sound you can hear.
How VoIP has revolutionised Cloud Communication technology?
Benefits of VoIP Phone System for your Business
Here the Following Benefits of VoIP Phone System – Cloud Communication technology
VoIP uses proven secure internet protocols and end-to-end encryption algorithms that ensure reliability. No third party can tap your calls and see your exchanged messages.
Many people think that when there is no internet connection, there would be no calls as well. However, it is not true because VoIP phones have another important feature that is call forwarding. In case you have no internet connection, your call is forwarded to your mobile phones or any device you want. It means that weather issues and power loss will no longer affect the productivity of your firm, and you will never miss a call from an important client or your team member.
- Supreme Flexibility
VoIP applications let you adjust call flow instantly. VoIP gives you the best Uptime – a term used for the amount of time an application is online and functioning. To ensure high uptime, VoIP providers use multiple redundant servers. VoIP phone systems offer more flexibility and portability as compared to traditional phone systems. When you are using a conventional landline, you are restricted to one location, and it is difficult to take your services with you when moving from one place to another.
As long as you have an active internet connection, software or app, you are all set. It is suitable for the business with multiple branches to make calls and connect to your staff easily. Just install a VoIP phone system in your employee’s computers, tablets and smartphones and keep working.
- Enhanced Accessibility:
VoIP phone systems provide you with a great deal of accessibility. With a decent data connection, you can place and receive business calls from anywhere. Even if you are unable to receive a call, you can redirect it to another person or transfer it to the voicemail option.
If your employees are working in some remote location, you can communicate them on a VoIP app and can monitor work progress and delegate tasks. Furthermore, VoIP can be installed on computers and smartphones, which means you can use any of them and conduct business.
The cost of using a VoIP phone is much lower than the traditional phone. You may need to install too many phone lines, and it would be expensive, especially when you make long-distance calls regularly. However, when using VoIP technology, the calls are sent over the IP network, and the problem of one phone line being able to be used by two callers only is solved. Moreover, the infrastructure involved in the VoIP system is relatively inexpensive. It means that even small businesses can enjoy the high-quality business phone system without putting pressure on their budget. Call charges of VoIP phones are also low as compared to conventional phones. Furthermore, VoIP’s repair and maintenance costs are also less, making it more suitable and cost-saving for business.
- High Portability
Since the VoIP phone system operates on the internet, so it is highly portable. You can carry VoIP phone services operating devices anywhere. Even you can monitor your work progress on the go. Another advantage of a VoIP phone system is that you can easily expand it as your business grows. For expanding a traditional landline, you need hardware installation and extra phone lines that add high cost to your budget. While in the case of VoIP expansion, You don’t need to install additional hardware or phone lines. VoIP allows you to add or remove any number of phones and extensions so you can avail the services to fulfil your business requirements.
VoIP phone systems not only enable you to place and receive phone calls but also conduct video conferences, exchange text messages and transfer files simultaneously; you don’t need different applications for placing and receiving calls and transferring files at the same time. A VoIP system is more than making and receiving calls. Advancement and innovation in VoIP phone systems incorporate multiple communication services such as video conferencing, instant messaging, teleconferencing, receiving voicemails and many more. Video conferencing helps you to keep in touch with your staff even when you are abroad for business meetings. You can enable intelligent routing features, so your clients do not need to wait and contact the right person at the right time. Call screening is another feature of VoIP that enables you to look at a number on caller ID and treat it accordingly. Features may vary from provider to provider, and you can custom VoIP services according to your business needs.
- Higher Scalability
VoIP phone services are highly scalable. If you are expanding your business, then you don’t need to buy a new expensive telecom infrastructure and spend money on setting it up. On the other hand, VoIP services can come with you no matter wherever you go. The VoIP phone system enables its users to make and receive calls from anywhere.
Another benefit of using VoIP phone systems is that your IT team will not need to work on a new technology layout. You can use your existing ethernet connection or WIFI as the foundation of your network. The complexities of conventional phone networks are eliminated. VoIP allows you the implementation of a standardised system that supports a variety of communication types. It also requires less equipment management.
- Best Audio Quality
VoIP apps are famous around the globe for the best audio quality. VoIP phone systems use state of the art audio and video codecs that minimize background noises and echoes. HD audio codecs use twice the bandwidth and produce a wide range of great quality audio sound as compared to standard audio codecs.
In the start, when the VoIP technology was new, the quality of the call was very low, and the call dropped for no reason. But now, with advanced technology, as long as you have a good internet connection, you can make high-quality phone calls. When you make phone calls via your cell phones, you may suffer problems of delays, echos or background noises. VoIP calls end all these issues, providing you a clear call quality so that you can focus on your meeting agenda when dealing with your clients or staff.
- Cheap International calls
VoIP phone services offer cheap international calls. Usually, VoIP phone calls are made over the
Internet so call charges start at a penny per minute. You can establish toll-free and virtual phones numbers and make it more economical for global customers to contact you.
- Increased Security
Phone system security is very important, especially for businesses. Many companies receive fraudulent phone calls and other security threats. VoIP systems have the capability to use encryption protocols and mitigate all the security threats. VoIP providers are more concerned about the protection of their network, so you don’t need to worry about security when using an internet phone.
When you compare VoIP vs landline, you see that VoIP phone systems offer significant advantages to your business. It will not only help you to save money but also increase efficiency and productivity through smooth and uninterrupted communication between clients and team members. If you are still using a traditional landline system, it’s time to consider the latest technologies and alternatives like internet phones. Once you decide to shift to the VoIP phone system, you should consider different providers to choose the one that meet your business needs.
VoIP vs Landline Comparison
Is VoIP better than landlines? Read more the descriptive guide to know the difference between VoIP vs Landline when choosing the right phone system.
Landline Phone System
Landline Phone uses wired cables or optical fibre to place and receive calls. It is also known as Plain Old Telephone Service(POTS). In 2003, the CIA World Factbook reported approximately 1.263 billion dedicated landline telephone lines.
It is a common perception that the American Alexandre Graham Bell invented the first phone. But in reality, it was an Italian-America Antonio Meucci that invented the phone in 1849. However, Alexander Graham Bell was the first who acquired the first telephone patent in 1876. The first table phone was Ericsson’s Taxen. Up till the 1930s, more than 2 million copies of it were sold globally.
Benefits of Landline Phone System
- Highly secure
- Better sound quality
How do landline phones stack up against their modern successors? Here’s a side-by-side comparison of VoIP vs. analog phone systems.
Landline vs VoIP:
|Technology||Internet Phone(SIP, TLS, SRTP, H.323)||Analogue voice signals|
|Transmission Medium||Internet(minimum 100 kbps per line)||Telephone line(insulated wire)|
|Ease of setup||★★★★★||★★★|
|Wireless||✅||DECT and Bluetooth within the same premises|
|Setup Cost||£0||£140 per connection|
|Devices||Computers, Smartphones, Standalone Ethernet IP phones||Telephone|
|User-to-user calls||✅||PBX Dependent|
|User Privacy||✅||Varies depending upon the provider|
|Free Phone Number Changing||✅||❎|
|Phone Extension||✅||PBX Dependent|
|Audio Conferencing||✅||✅ But only 3-way calling|
|Free Call Routing||✅||❎|
|International Calls||UK: $0.01/min||UK: $1.21/min|
|Free Business Voice Mails||✅||❎|
|Hunt Groups||✅||PBX Dependent|
|Customer Relationship Management (CRM)||✅||❎|
|Auto Attendant||✅||Requires PBX|
|end-to-end Call Encryption||✅||❎|
Is VoIP Cheaper than Landline?
Interested in getting a VoIP system? Schedule a tailored demo of our VoIP and UC software with one of our team and find out what features your business can enjoy.