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What is VoIP and Why Does it Matter?

What is VoIP and Why Does it Matter?

Voice over Internet Protocol (VoIP) has changed the way of communication worldwide. Phone calls via the Internet have made many processes more accessible. Undoubtedly, this service has a lot of pros and cons. So, let’s dive into what VoIP is and what are its advantages and drawbacks!

Voice over Internet Protocol, also known as VoIP, is a technology that allows phone calls to be made over the Internet. It doesn’t use traditional phone lines; instead, your voice turns into digital signals. This digital data is conveyed over the Internet to your recipient’s device, and on the recipient’s side, it is conveyed back to the voice.

So, what’s the difference between VoIP and traditional calls? In comparison to traditional voice calls, VoIP phone systems use the internet, not physical gadgets, to call someone. VoIP services allow calling not only via phones but also computers, laptops, or tablets. Finally, VoIP has more features, such as voicemail, multiple integrations, and call forwarding.

How Does VoIP Work?

As mentioned above, VoIP works by converting voice into digital information packets and compressing them. Then, these packets are sent to the recipient in any part of the world. All of this happens in less than a second while you are connected to the internet. That’s why VoIP is an alternative to a business phone.

Maybe the whole process sounds complicated, but it’s much easier than it sounds. So, let’s start from the beginning!

How VoIP works

Session Initiation Protocol Registration

The first process necessary for establishing VoIP services is the Session Initiation Protocol registration, also known as SIP. After recording your data, such as your IP address, and ensuring you have a connection to the internet, you will be able to use VoIP.

Connecting With The Recipient

When you make a VoIP call, your device sends a message to a server asking to connect with another person. The server finds that person’s device and helps both sides to connect.

Sending and Receiving Voice Data

When you speak, your voice is compressed and converted with the help of Analog-to-Digital Converters (ADC). Protocols, such as User Datagram Protocol (UDP), transfer the data to the recipient. On the other side of a VoIP call, information is “decoded” back to the voice message with the help of Digital-to-Analog Converters (DAC).

The Final Part

When you end a VoIP call, your device sends a signal to the server to disconnect. The server then stops the call and releases the resources used. While understanding the technical details of VoIP can be helpful, businesses typically only need a reliable VoIP phone service that handles all the technical aspects. This allows companies to focus on connecting with customers without worrying about the underlying technology.

Pros of Using VoIP

According to G2, more than 30% of businesses use VoIP. These statistics show how beneficial and helpful VoIP services are. But what are the main benefits that a business can get from using VoIP? Here are some of them:

  • Affordability: The first reason is the affordability of VoIP services. Long-distance calls, or international ones, can cost more if made on traditional phone lines. In addition, with VoIP, you don’t need to buy expensive Private Branch Exchange (PBX) systems.
  • Scalability: The second advantage of the VoIP phone system is its scalability and flexibility, which allows it to be perfectly adapted to business changes. On top of that, VoIP services are feature-rich and can send voice mails, make conference calls, and forward calls—features that traditional phone calls lack.
  • Integrability: VoIP can be integrated with collaboration and communication tools, such as CRM systems and project management tools. This makes the communication processes much easier and improves customer satisfaction. Finally, VoIP can be integrated with call center software and business phone systems. Surely, the specific integrations depend on the VoIP platform. However, most VoIP systems allow integrations with Microsoft Teams, Google Voice, 8×8, and so on.

Cons of Using VoIP

While VoIP offers numerous benefits, you should also consider some of its biggest cons. Let’s take a look:

  • Requirement of Stable Connection to the Internet: VoIP is not a good option in places with limited access to the Internet. If you want to avoid bad call quality or interrupted calls, you should make sure you have a stable internet connection.
  • No Emergency Services: The second, and a very important thing to take into account, is the absence of emergency calls. In case of emergencies you should have a backup option.

Choosing a VoIP Service

Before choosing your VoIP service, take into account your specific needs and preferences. Here are some aspects to consider.

Types of Services

  1. Hosted VoIP: This type of service is managed by someone else. It offers flexibility but limited control and should make monthly payments.
  2. On-premises VoIP: This type of service gives you maximum control, but it is harder to set up. Management is on you, meaning you should have prior experience using VoIP services.
  3. Hybrid VoIP: The final type of service is a mixture of the above-mentioned services. Typically, with this setup, a hosted third-party VoIP service runs on a server and hardware located on the premise. You get both control and flexibility but to a limited degree.

Besides the service type, there are some nuances you have to consider.

Things to Consider While Choosing

  1. Price: Depending on your budget, choose the optimal option. Consider additional charges as well.
  2. Customer Support: Check the quality of customer support of the chosen VoIP platform. Take into account their response time and customer satisfaction.
  3. Security: Research the service’s security measures and safeguard mechanisms protecting your information.
  4. Integration Features: When used for business purposes, it’s important to have rich integration features.
  5. Ease of Use: Consider the simplicity of the interface and its user-friendliness.

Conclusion

Now that you’re familiar with the VoIP system, have extensive knowledge about it, and know how it works, it’s time to choose a provider. Consider your goals and needs, as well as the challenges you have to face. A VoIP can make a number of processes easier if used properly. So, don’t be afraid of novelties and changes!

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