VoIP providers present businesses with a compelling opportunity to reduce costs significantly, all while gaining access to features that traditional phone services can’t provide. The transformative impact of Voice Over Internet Protocol (VoIP) technology has revolutionized global telephony and business communications.

VoIP extends far beyond platforms like Skype. Today, it stands as the predominant method for transmitting voice calls globally. Its application is diverse, operating not only within proprietary networks but also through communication systems utilizing the Session Initiation Protocol (SIP).

Understanding how VoIP works and what sets it apart from traditional office handsets is crucial. This article aims to provide a clear explanation of the processes involved when making a VoIP call, distinguishing it from the conventional office phone systems of the past.

What is VoIP – Voice Over IP?

The distinction between VoIP and traditional telecommunications lies in the acronym itself. VoIP, or Voice over Internet Protocol, is a specialized internet protocol designed for voice communication over an IP network. For those familiar with the internet, an IP network is the foundation that allows the internet to function, comprised of layers and standards. In essence, VoIP harnesses this network to enable voice communication, marking a departure from conventional telecommunication methods.

The “internet” operates by exchanging data packets between source and destination hosts. Due to its vastness, distinct standards are essential to differentiate various communications. These distinctions occur through designated ports, marking different endpoints. For example, internet browsing and FTP connections employ different protocols and ports. Voice calls over IP adhere to the VoIP standard and protocol, which sets it apart from traditional methods like the public switched telephone network (PSTN). While PSTN relies on physical connections, VoIP utilizes the internet’s IP-based protocol, illustrating a fundamental difference in how voice calls are conducted.

VoIP stands out as a digital-only communication method. In contrast to traditional PSTN setups, where analog sound signals are transmitted over fixed telephones, VoIP converts human voices into digital packets. These packets travel through a network and are then transformed back into sound signals on the recipient’s device. While PSTN has evolved to incorporate digital elements, its original concept was based on analog links between fixed telephones. VoIP, on the other hand, emphasizes a fully digital approach, representing a modern shift in the way voice communication is processed and transmitted.

VoIP implementation offers versatility with a mix of proprietary and open-source protocols. Widespread protocols, like SIP for connection management and RTP for real-time transport (including video), contribute to its functionality. Optimized protocols, such as XMPP, cater to specific operating systems like Unix-based environments. VoIP leverages packet-switching at the carrier level, surpassing the speed and efficiency of traditional circuit-based switching. This technological advancement ensures quicker initiation of long-distance international calls compared to older systems, making VoIP a faster and more effective choice for global communication.

Offers more than voice calls

Indeed, VoIP transcends basic voice digitization over the internet. While designed for voice transmission, it often functions as part of a larger technical stack. For instance, in video-conferencing setups, VoIP seamlessly integrates with a video feed, creating a cohesive communication platform. This highlights the adaptability of VoIP, showcasing its capability to serve as a versatile layer within various technological frameworks, enhancing communication experiences beyond traditional voice calls.

What do you need to operate VoIP?

VoIP offers a significant advantage over traditional PSTN-based phone systems as it allows access from anywhere with a stable internet connection. Unlike fixed-line “landline” devices that required physical wiring to a connection box, limiting flexibility, VoIP operates seamlessly over the internet. This flexibility enables businesses to easily re-provision communication setups at new locations without the constraints associated with fixed-line systems.

• To adopt VoIP, businesses require VoIP-enabled phones and a subscription to a VoIP software provider. Regular phones can also be used with an adapter converting input to analog. However, to make calls, a subscription with a VoIP provider is essential. The provider manages the transmission of calls to their destinations. This straightforward setup allows businesses to seamlessly integrate VoIP into their communication systems for efficient and cost-effective operations.
• In a standard business configuration, numerous connected handsets link through a Private Branch Exchange (PBX) server. This server manages internal call routing and facilitates external network connections. The company subscribes to a VoIP service provider, which charges based on the overall call volume. This setup ensures efficient internal communication and connectivity to external networks while allowing the business to manage costs through its VoIP service subscription.
• While calls over non-proprietary systems can travel entirely through VoIP, VoIP networks also seamlessly integrate with traditional PSTN networks, which is why VoIP providers are essential. This integration eliminates limitations on the numbers that can be dialed once a company transitions to a VoIP-based telephony system. This flexibility ensures that businesses can maintain connectivity with both VoIP and traditional phone systems, enabling effective communication with a broader range of contacts.
• The last component, SIP trunking, ensures that VoIP traffic travels directly between the business router and the Internet Service Provider (ISP). This physical separation of the data line from the main traffic subscription means that businesses won’t face concerns about additional bandwidth consumed during high call volumes affecting the quality or speed of the primary data connection. Essentially, SIP trunking provides a dedicated pathway for VoIP traffic, maintaining its efficiency even during periods of increased call activity.

Advantages offered by VoIP

Opting for a VoIP-only telephony infrastructure presents numerous benefits for business operators.

• The setup costs for VoIP networks at the carrier level are typically lower than those for PSTN, resulting in more cost-effective VoIP subscriptions compared to similar services on PSTN-based plans. This financial advantage makes VoIP an attractive choice for businesses aiming to reduce telecommunication expenses while enjoying the advanced features and flexibility that VoIP technology offers.
• Leading VoIP systems frequently outperform their traditional counterparts in terms of reliability and seamlessly integrate with digital call management and routing systems. This enhanced reliability ensures a stable communication infrastructure for businesses, allowing for efficient call handling and management. The adaptability of VoIP technology to modern digital systems contributes to its reputation as a robust and dependable solution for businesses seeking advanced telecommunication capabilities.