How Does VoIP Work? (A Step-by-Step Guide In 2021)

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Whether you run a small business or a corporation, communication plays a vital role in your success. It fosters a good connection between you and your team members, including your clients.  

Effective communication is one of the key strategies to achieve your company’s goal since you’ll be sharing information within and outside the company more often. If you want to know more, read until the end of this article as we answer the question, “How does voip work?” 

What is VoIP?

Voice Over Internet Protocol (VoIP), also known as voice over IP phone is one of the most useful technologies today. It offers versatility of features that can help you run your business successfully.

A VoIP phone system enables traditional telephony, also known as landline or PSTN, to operate over devices connected to the internet using packet-switched protocols. 

It allows you to make and receive calls wherever you go as long as you have an internet connection. Many people consider using VoIP because they can make phone calls without the traditional telephone service. You can save money with this feature and use it later on other future business plans. 

How Does a VoIP Phone System Work?

This technology enables you to make and receive calls over broadband connection instead of using a traditional line or a mobile network. It converts your analog voice signal into a digital signal to be transmitted over the internet. 

A VoIP phone system allows you to use multiple telephone networks using a VoIP server. But, to be able to call someone using VoIP you need to have a high-speed internet connection that has a router or a modem, an SIP-compatible desk phone, or a VoIP app by a VoIP provider. It will use an IP address so that you can make calls from your network-connected device. 

In order to make your first phone call using a VoIP phone system, you need to do the typical configuration which will involve your desk phone and register it to your VoIP service provider. It will take you as fast as 30 minutes to complete the process. It will be activated immediately and you don’t need to call the local phone company. 

A VoIP phone system stores up all the data in your cloud which you can navigate and monitor through an online dashboard. This dashboard enables you to adjust your contact list, business phone numbers, and set call forwarding. 

Unlike the traditional landline that has only one phone number per line, VoIP phone systems are tied up to your VoIP account and do not limit you to only one VoIP phone number per line. This means that you can take calls and handle multiple accounts with different phone numbers simultaneously using the same VoIP device. 

VoIP vs Regular Phones: Similarities and Differences

You have two options to choose the best phone system for your business. Here are key points to consider.

Let us start with the similarities between a VoIP phone system and landline phone. 

  • They use the same keypad and button for call hold, call transfer, and caller ID. 
  • Their design is similar to the typical business telephones.
  • The basic arrangement of receivers and speakers are similar. 

If you’ve used the traditional landline phone before, it won’t be difficult for you to adjust to and navigate a VoIP phone. Switching to VoIP is something that you don’t need to worry about since it’s easy.

While both can receive phone calls, landline phones and VoIP differ in how they operate. Here are some major differences:

  • VoIP phone systems are connected to a broadband network that needs to be registered online with your VoIP service provider. It does not need an expensive copper wire. Meanwhile, a landline phone requires copper wiring. 
  • VoIP phones provide better, HD audio quality than a traditional landline call. 
  • Landline phones are limited to one phone number per line while VoIP phone systems aren’t tied to a number but to a user account. You can toggle buttons on simultaneous calls with each account that has different phone numbers.
  • VoIP phones can transmit voice calls, video calls, and other forms of multimedia unlike a landline that only supports voice calls. 
  • VoIP has a feature called voicemail to email that transcribes your voicemail into email. This offers the convenience of being able to check messages regardless of your location. 
  • Landline phones require additional cost for add-on features such as call waiting, call forwarding, and call parking. These features are available in a VoIP phone system at no additional cost. 
  • You can still use a landline during a power outage, unlike a VoIP phone that requires an internet connection to be functional at all times. However, you can use VoIP’s call forwarding feature to redirect calls to your backup device. 

These are just some of the major differences of VoIP phone systems and traditional landlines. It’s evident that VoIP outperforms traditional landlines in many ways.

The Top Advantages of a VOIP Telephone System for Your Business

VoIP phone systems help businesses streamline communications without costing a lot of money. Landline phones have no match to VoIP’s flexibility features. VoIP is more convenient since you’re no longer required to have a server room in an premises PBX (Private Branch Exchange) because you only need a configured VoIP desk phone. 

But you don’t need to worry if you already have a PBX – you can still benefit from all VoIP features with the use of a VoIP adapter that will enable you to let VoIP work with your traditional phone. 

Check out these important benefits of VoIP:

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1. Low Cost Per Call 

Traditional phones require copper wiring in order to allow callers to communicate. But copper lines are expensive to maintain, especially for long-distance calls. One of the top benefits of VoIP is that it’s cheaper whether you’re making local or long distance calls. 

2. Mobility

VoIP is far different from a landline phone since VoIP works the same regardless of your location. Your distance does not matter to a VoIP system as long users have a high-speed internet connection. Another point is when you need to relocate your business, it will be much easier to transfer your services, unlike traditional phones that require specific codes that should match locations. It will take too much of your time to transfer your services from one place to another. You can get rid of these physical limitations with VoIP. You will have the freedom to move wherever and whenever your business needs to grow. 

3. Flexibility

VoIP connection allows you to multi-task which increases productivity. For example, your team members are busy with a large volume of calls. And in case you miss client calls, you can still get back to them after reading the voicemail-to-text transcriptions that are sent to your email. Or, for a second option, you can use the call forwarding feature. VoIP services have your back wherever you need to grow your business. 

4. Easier Conference Calls

While a traditional landline allows you to participate in a conference call, unfortunately you need to pay additional service cost to handle multiple callers in a call. In VoIP, this feature is already part of what you paid for. You can maximize this benefit and host multiple conference calls.

5. Reliability 

If you have a good broadband connection, you can enjoy high audio quality phone calls that are equal to traditional phone calls. You might be worried because it relies on the internet and there might be down times. VoIP can resolve those worries with its call forwarding feature so you won’t be sacrificing your company’s productivity. You have the freedom to choose where and how your calls will be forwarded in case of a power outage. If your desk phone cannot take calls, it can be transmitted to your mobile device or your laptop. 

VoIP Phone System Requirements

Your business will need the following: 

  • A reliable internet connection at least 100 Kbps per device. You can check your speed connection here
  • A mobile device or laptop to download a VoIP app. This app will let you separate your caller ID since your voice data will be handled by your service provider. Another option is a SIP phone to establish phone calls using your service provider or an Analog Telephone Adapter to let VoIP work correctly in your traditional phone.

A Checklist Of Criteria For Switching To VoIP

Your VoIP phone system implementation checklist includes:

  • High Bandwidth – Your business should have a high bandwidth connection or else VoIP will not function satisfactorily. 
  • Router – This will be used to run off SIP (Session Initiation Protocol). Make sure to use a high quality router to maintain excellent call quality.
  • VoIP hardwares – You need to invest in digital office phones, headsets, VoIP adapters or a telephone to make calls. Make sure to choose the best VoIP provider. This may cost you a lot at first, but it will save you more money in the future.
  • Scalability – You have to decide whether your VoIP phones that will handle voice traffic will share the same network with other standard internet users. 

Choosing the Right VoIP Provider

Make sure to select a trustworthy, reachable, and reliable provider that will ensure an excellent setup and positive user experience. 

Here are some factors to consider in your decision:

  • Initial and monthly VoIP system costs
  • Reliability and tech support availability
  • 24/7 Customer Service
  • Reputation of the company
  • Complexity of products and services
  • Customer reviews and timely feedback

Reach out to ULTATEL and get a free quotation to have an idea and to better discuss how VoIP can take your business communication to the next level.

Summary

As mentioned above, VoIP has extensive benefits than a traditional phone and it is highly recommended to conduct business communication smoothly and efficiently. 

You can also rely on VoIP to optimize your business production. So, don’t be afraid to take the risk to get the best possible results.

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