What is VoIP phone service? How Does It Work?

VoIP Meaning

VoIP phone service is one of the next generation communication technologies, making business communication smoother without using physical landline. This technology makes use of broadband connection or Internet connection to facilitate domestic as well as international communication. VoIP refers to Voice Over Internet Protocol. It offers an open standard to establish connections through the Internet. 

Brief History of VoIP

The history of VoIP phone service can be traced back to a series of inventions and events. Let’s look at each of these events that evolved into a smooth, flexible and very functional cloud-based communication technology. 

1960: Paul Baran and some other scientists started inventing the packet network features. 

1973: Danny Cohen worked on the voice over ARPANET.

1974: Real-time voice conversations started taking place on that network. 

1977: The arrival of User Datagram Protocol (UDP) enabled voice traffic to be carried reliably using data networks.

1990: VoIP began growing.

1991: The first time someone tried VoIP, using the app Speak Freely. 

1992: Clipper was launched, and InSoft brought out Communique, a new tool for desktop conferencing with video. 

1994: The FCC made it necessary for VoIP companies to follow the law and take part in the Universal Service Fund. 

1995: Intel and Microsoft started developing VoIP standards.

1996: The ITU-T standardized H.323 and G.729. 

1999: The approach known as SIP was agreed to be a standard by industry leaders.

There was a very fast expansion in the 2000s. 

2005: The FCC required that 911 emergency calls work with VoIP. 

2006: The new version of the codec, known as G.729, came out, and after that, the market in Asia quickly spread. 

2009: Skype introduced SILK, which made calls sound better. 

2010: FaceTime received its high-quality audio and video from Apple’s AAC-LD codec, launched.

Thanks to VoIP, we are able to talk to others on simple calls and even worldwide video chats. Many years of improvements have made internet calls clear, speedy and much more reliable than before.

How Does VoIP Work?

With VoIP phone service, all your phone calls are made through the internet, not a standard phone line. It changes your voice into digital data, sends it over the internet and changes it back into sound at the receiver’s end. Because this takes just seconds, you can now chat with people from all around the globe.

Any time you do a VoIP call, your phone performs several key functions.

• It creates digital data from your voice.
• Then compresses the information so that sending it becomes simpler.
• After that, it divides the information into separate small pieces.
• The data packets circulate over the web.
• Afterwards, the phone puts the packets in order and plays the sound.

With this method, the person you’re calling almost hears you instantly.

Let’s see what goes on behind the scenes in a VoIP call.

• Your cell phone can access your home network.
• You type in the number you need and press call.
• The phone will contact your VoIP provider and ask it to carry out the call.
• The provider begins the call by sending voice packets over the Internet.
• Information sent as voice messages is shared between the two parties of the call via the internet.
• Those devices make that data audible again.

VoIP phone service systems use Codecs, special tools that reduce and restore voice information in data. Codecs are important in a VoIP system for:

• Saving space by passing voice data near real-time.
• Using less bandwidth by the network
• Ensuring that communication happens faster and better

There can be slight changes in how the voice sounds during compression, however, users hardly ever notice this, unless they have a weak internet connection.

Equipment Required For VoIP System

Making phone calls, especially abroad, is smart to do through VoIP. Installation is very easy, you can access it online, and it lets you be more flexible than using a regular phone system, with a basic setup.

It only takes a few things to make it work: 

• Various types of good internet services (DSL, cable or fiber)
• Either use an IP phone, a software VoIP app or a converter to connect your regular phone to the device
• A device called a router or switch helps your phone use the internet
• And a VoIP company to handle all your incoming and outgoing calls

Necessary Components for a VoIP System

VoIP phone service systems are advanced due to their necessary components. Some of them are:

1. IP PBX controls the telephone numbers, equipment and call functions in an organization.
2. Gateways enable VoIP systems to connect with normal telephone networks and will work if the VoIP system goes down.
3. Session Border Controllers: Keep the network secure and control the way calls are routed between several systems.
4. By using Quality of Service (QoS), calls are given priority so there is less chance of lagging or echo.
5. Help emergency services locate you when you call 911 from a VoIP device.

Difference Between VoIP and Landline 

VoIP phone service and landline both are communication technologies. However, they differ greatly in their functioning and underlying technology. One of the major differences is that VoIP is completely based on Internet or broadband connection while the traditional landline phone is based on Local Area Network or LAN. 

Another major difference is that traditional landlines do not offer advanced features such as call forwarding and recording. 

Advantages of VoIP

VoIP has been a revolutionary service when it comes to professional networking and communication. Here are some reasons why every small and medium-sized business should use it: 

1. Cost Effective: The VoIP service is much more budget-friendly than other calling services. It is worth noting that it can reduce communication costs by up to 50% by minimising site maintenance and repair expenses. 
2. Sound Quality: Most of the communication technology tends to compromise the sound quality in order to reduce the cost. However, VoIP offers HD quality sound and also has management tools to check connectivity errors. 
3. Low Cost International Communication: International calling is an important part of global businesses and it is very expensive. But by using this technology, companies can lower their international calling expenditure.
4. Advanced Tools: Common communication technologies do not offer some of the advanced tools and features, such as call recording, call forwarding, etc. 
5. Speedy Deployment: Another feature that is worth mentioning is how fast the connection takes place. This speedy networking is attributed to the use of the internet. 
6. Remote Accessibility: Last but not least, the traditional phone service does not work remotely. While VoIP can work remotely without any technical setup. This is great when you are working from home. 

Disadvantages of VoIP

Every coin has two sides. Though the Internet offers numerous benefits over landlines, at the same time, it becomes a real downside. When calls happen over the Internet, the voice quality depends on the network connection. The stronger the network, the better the voice quality. 

But with VoIP quality test tool, you can check the following errors: 

• Latency
• Bandwidth 
• SIP ALG issues
• Packet Loss
• Jitter

This tool will help you detect potential errors for early troubleshooting. 

Features of VoIP

Unlike standard phone lines, VoIP phone service gives users different innovative tools to boost efficiency, help people who work remotely, and improve customer relationships.

Business groups of any number can make use of these popular and attractive VoIP advantages.

1. Auto Attendant

The first step to a professional first impression is setting up a smartphone menu. An automatic receptionist from an auto attendant helps direct incoming calls to the best department or employee. For example:

• Press 1 to get information about sales.
• Now, Press 2 to contact support
• Press 3 to find general answers to your questions.

Since your VoIP system can be customized using a web browser, you don’t need to wait for a technician to update your call routing options. With this feature set up, your callers will get to the department they need without any delay.

2. Applications for Mobile Devices

Your team isn’t stuck at their desk when using VoIP. Using both the mobile app and desktop app, employees have the ability to make or receive calls on laptops, smartphones or tablets. Such flexibility fits the needs of:

• Remote workers
• Members of traveling sales teams
• Technicians who are out and about in the field

These apps make sure your team members stay in touch and keep working from any location. By moving to wireless phones, companies can cut expenses on hardware costs as well.

3. HD Calls 

One of the greatest benefits of VoIP over regular phone systems is HD quality for calls. Thanks to top-quality codecs and a reliable internet connection, all audio on your Zoom calls will sound clear. As a result, staff members communicate more smoothly, and customers notice the improved way your team communicates.

4. UCaaS 

It stands for Unified Communications as a Service. Unified Communications as a Service (UCaaS) is built on top of VoIP, which provides one user interface for calling, video meetings, chat messaging, voicemail and similarly important features. Because the tools are linked, teams can share messages efficiently and do not have to switch between several methods.

It is also equipped with advanced features including:

• Call recording
• Real-time reporting
• Tracking voicemail using a single interface

If having efficient communication is important to your business, VoIP will help unify all your virtual efforts.

5. Call Security and Encryption

The security of online calls is something that worries most people. But in this service, when you look at call logs to see who spoke and for how long, the conversation itself remains unreadable, something beneficial to firms that must operate within compliance and confidentiality.

6. Call Recording

Do you require a system to regularly listen in on calls for quality assessment or staff training? Call recording is a standard feature in VoIP systems. For those with advanced requirements, companies can select extra features such as:

Including sentiment analysis to notice those who are not satisfied with the service

Information on guiding the sales team and identifying more sales chances

Using this approach, you continue to revise your customer service strategies and make sure your team is doing well.

By using smart call distribution, crisp audio, on-the-go access and built-in security, VoIP offers you flexibility, a professional image and the ability to expand.

How Much VoIP Cost?

Using a VoIP (Voice over Internet Protocol) phone system can greatly reduce your phone bills and offer new age advanced features. Most companies move to VoIP because it’s very affordable compared to phone lines or traditional PBXs.

Usually, the monthly cost of a VoIP phone system for one user is $35, offering more functions than what’s available on a regular landline, such as directing calls, voicemail, mobile apps and video conferences.

Let’s look at how VoIP pricing usually works:

• You can set up your service for free or pay up to $60 per line.
• Each line costs between $19 and $45 each month.
• Personal use of an IP Phone is optional and will cost between $80 and $600.
• International Calls start from $0.01 per minute
• With a pay-as-you-go setup, VoIP allows businesses to adjust as needed and doesn’t restrict them to old systems.

You’ll find the price difference is more obvious when looking at VoIP phone service next to legacy systems. Traditional phone systems tend to charge you for things you might not expect.

• Fees for setting up the line come to $50–$100 per line drop.
• You need to pay $100–$500 when you make the deposit.
• A yearly fee of $1,000 for maintenance is required.
• You will pay $.01 for each minute of an international call.
• It’s likely that you’ll need to pass a credit check.

Thus, VoIP means you pay far less for calling expenses. 

How to Choose VoIP Provider

As more companies are turning to cloud-based communication and leaving behind traditional phones, VoIP (Voice over Internet Protocol) is now the preferred option. 

Although most companies in VoIP phone service give similar basic tools, you should pick your VoIP provider based on the unique requirements, scale, type of work, and future objectives for your own business. If you are looking for a free VoIP phone service, then you must prefer Google Voice. 

Let’s see how to select a VoIP service provider that suits your requirements:

1. Implementation Experience

The system and quality of a VoIP solution largely depend on how it is set up. Select a company that stands by you during implementation, instead of offering you only a standalone product. A good provider will:

• Set up more advanced things like auto attendants and call queues.
• Set up physical desk phones~(if they are part of the plan)
• Teach users how to use the system
• Suggest suitable hardware and software for your clients

With this, you won’t have to struggle on your own and can start using the VoIP system straight away.

2. Network Compatibility

The new VoIP phone service system you get should be able to function perfectly with your current IT network. When choosing a provider, be sure they will:

• Find out how much bandwidth you are using and what equipment makes up your network.
• Give your employees the ability to customize their workstations if yours is not typical
• Handle the system so that calls are always clear and dependable, no matter how big your business grows

Always verify that all your offices, remote teams and devices can use the network you are planning to use.

3. Industry Experience

The communication needs of industries are not the same. No matter if you’re in healthcare, education, retail or legal services, choose a VoIP phone service provider that has worked in your sector before.

• Working with a provider who is a technology expert in your industry offers many benefits.
• Templates and features are designed for your area of work.
• Having a better understanding of privacy challenges.
• Case studies or testimonials from businesses.

The approach ensures the system addresses your needs, not only those of every user.

4. Outstanding Customer Service

When much is depending on working communication, support can make all the difference. Select a VoIP provider that offers you the features you need.

• Help is available all day, every day, or very quickly.
• Assistance specifically for transferring numbers
• Setting up and updating different systems
• Continual assistance for assembling and maintaining.

Work with a provider that takes prompt action to ensure your system runs well, especially when your company is growing or starting to use the platform.

5. Availability and Security

Since VoIP is delivered over the internet, it must be reliable and secure all the time.

Make certain the company you pick provides:

• High availability means the system is active 99.999% of the time.
• Two data centers that can protect against disasters.
• Secure encryption on both phone calls and stored information.
• Following key industry requirements as indicated by ISO/IEC 27001.

A trusted VoIP provider helps your business stay online and safe, regardless of how busy their network is or if something interferes.

Conclusion: 

VoIP phone service is a powerful communication technology that has spearheaded how communication happens within organisations with affordable, remotely friendly service with advanced features.

Also Read: What is a Digital Twin Technology?

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