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Voice-Over-Internet Protocol (VoIP)

von Samudyata Bhat
Voice-over-Internet Protocol (VoIP) is a technology that enables multimedia communication via the internet. Learn about VoIP types, features, and benefits.

What is Voice-Over-Internet Protocol?

Voice-over-Internet Protocol (VoIP) is a form of communication technology that enables audio and video interaction via an internet connection. As opposed to an analog connection, it’s a relatively new method of phone transmission that facilitates internet phone calls using any smart device.

VoIP providers transform the voice signal used in traditional phone technology into digital signals that travel through the internet instead of analog telephone lines.

Types of VoIP

Five types of VoIP services are available in the market today. 

  • Residential VoIP services: With this VoIP, the landline phone is connected to a Wi-Fi modem using an adaptor to make and receive calls over the internet. Charges are set according to different plans.  Example: VoIP.com and Lingo
  • Device-based VoIP services: This entails obtaining a VoIP device from a service provider and connecting it to an existing device to make free calls within the United States. This eliminates the need for a monthly payment or any other equipment than a traditional landline phone. Example: MagicJack and Ooma
  • Software-based VoIP services: This is the most frequently used VoIP variety. It requires a web-based application online or installed PC software. It’s then used via the computer's audio input and output devices. Example: Skype and Zoom
  • Mobile VoIP services: Mobile VoIP is an application that’s installed on mobile phones rather than desktops, allowing call access from anywhere with a reliable internet connection. Example: WhatsApp and Google Hangouts
  • Business VoIP services: The two VoIP choices for businesses are on-premises and cloud-based. Both offer far more cost-effective communication options than traditional landlines and have a number of valuable features. These include video and audio conferencing services, screen-sharing, interactive voice response, automated attendants, call queues, and call reports. These features, often expandable, come with comprehensive technical assistance.

How does VoIP work?

VoIP operates by transforming voice audio into data packets, which then travel via the internet, similar to any other type of data, like text or images. These sound data packets travel almost instantaneously over public and private internet networks to reach their destinations. Any Internet-connected landline or mobile phone is capable of making and receiving VoIP calls. Users can make VoIP calls with a device's microphone, speakers, or headphones. 

Features of VoIP

VoIP callers provide several functionalities and serve many purposes. The main features include:

  • Call forwarding redirects incoming calls from one number to another number if the original number is busy, unreachable, unresponsive, or unavailable.
  • Call transfer routes the calls from one person to another. 
  • Call holding can be arranged using a VoIP system to record inbound and outgoing conversations automatically.
  • Voice mail serves two functions. The first is to answer incoming calls, and the second is to deliver messages to user inboxes.
  • Caller Identification displays the name and phone number of incoming callers.

Benefits of VoIP

VoIP callers have several advantages over traditional telephone systems. Some of its common benefits are discussed below. 

  • Low costs: VoIP only charges monthly ISP (Internet Service Provider), unlike traditional phone lines that charge per minute. 
  • Improved quality: VoIP enables the compression and deletion of redundant speech to increase efficiency. Users can hear a discernible change in the call quality because the audio isn’t garbled or distorted.
  • Advanced features and settings: VoIP can provide premium services to manage businesses, such as auto attendants, call recording, and call queues. Due to the adaptable nature of the service, custom VoIP services may be built to meet a company’s specific requirements.
  • Global reach: VoIP allows for effective global telecommunication. It enables employees to access the office's voice, fax, and data services remotely over the intranet.
  • Remote access: The portability of VoIP technology has increased dramatically.  Users can connect from home offices and overseas. In addition, the employee's number follows them to their new home office if relocated.

Limitations of VoIP

Some of VOIP’s common disadvantages are discussed below.

  • VoIP services require a high-speed internet connection, which may deter certain consumers.
  • It may limit access to sophisticated features unless consumers upgrade to a more expensive plan tier.
  • VoIP technology has a steeper learning curve than standard phones.
  • VoIP services completely depend on a stable, unbroken internet connection to avoid lag and delay.

VoIP vs. landlines

Landline phones are hardwired to a physical address using copper wires. Traditional telephones transmit voice signals over analog lines. To make phone calls, additional wiring must be installed. 

In contrast, apart from being extremely affordable and flexible, a VoIP phone makes and receives calls over the internet and is not restricted to a certain area, essentially providing its users with a unified customer experience.

Enhance business-wide communications with the best video conferencing software in the market today!

Samudyata Bhat
SB

Samudyata Bhat

Samudyata Bhat is a Content Marketing Specialist at G2. With a Master's degree in digital marketing, she currently specializes her content around SaaS, hybrid cloud, network management, and IT infrastructure. She aspires to connect with present-day trends through data-driven analysis and experimentation and create effective and meaningful content. In her spare time, she can be found exploring unique cafes and trying different types of coffee.