What Is VoIP, How VoIP works and why do you need it?

What Is VoIP  ? Voip is  (Voice over Internet Protocol) is a proven technology that lets anyone place phone calls over an internet connection If you are searching for VoIP and it’s working, chances are that you are thinking about switching to VoIP. Traditionally communication was done via copper wires that were connected to the handset. With line losses and ongoing weather issues causing distortion, traditional telephones were no longer good for business. Although most people are still using traditional phones as a residential communication system. However, this method is old, messy, and requires a lot of maintenance. Then comes VoIP that has replaced the traditional phone system and offers some of the best features. With the help of the internet, VoIP offers better quality, more features and cuts the cost to a minimum.

Stats revealed that last year VoIP reached over 3 billion users. This brings up the VoIP industry to 90 billion in revenue which means it is becoming a growing business industry. It is also expected that the VoIP industry will reach up to 1945 billion in revenue by the year 2024. Apart from this, VoIP can be used with both apple and android, however, it is expected that android will remain a dominant market for VoIP till 2024. As traditional phone systems are becoming outdated, businesses are switching to the VoIP system. According to an estimate more than 61% of the business have already switched to VoIP systems and this number is growing by the minute.

Why Do You Need to Switch to VoIP?

The main reasons behind this switch are cost-cutting and handling multiple calls simultaneously. With a residential phone, you do not need to handle multiple calls at the same time, however business requires you to stay connected with your team, clients, management and stay updated as well.

Traditional phone ends up choking the communication because it gets easily exhausted with just one call at a time. To attend more than one call at a time, you need an extension which requires more hassle and maintenance costs. With VoIP, you can have a 90% cost reduction while you will be able to attend multiple calls simultaneously without paying extra.

Before jumping into the reason and working, we need to have a detailed introduction to VoIP as a technology. With the help of this article, we will highlight VoIP as a technology and its works. We will also explain why VoIP is taking the communication world by storm and why more businesses are ditching traditional phone systems.

What is VoIP?

What is VoIP

If you are familiar with the working of traditional phones, you might be familiar with the traditional copper wires that take the sound waves and the recovery on the other end, which converts these waves back to sound. Now imagine the installment of these copper wires. You need poles or an underground system of wires and in case the wire gets damaged you might be able to listen to other calls too. In short, the process is complicated, requires maintenance and every line needs to stay separate.

VoIP addresses all these issues and offers a simple solution. VoIP or voice-over-internet protocol helps in using the stranded internet facility and helps you convert your voice in the form of packets. These packets are then sent via the internet to the receiver. This cuts the local telephone company from the equation.

How does VoIP communicate through the internet?

Your voice is simply converted to the digital signals and then compressed into a packet. It is up to you to choose the recovery. You can choose to call someone or your whole team. The number of participants and people who can join is also in your control. At the receiving end, these digital data packets are converted back to sound and the selected receiver gets to hear that voice. All this happens in milliseconds without any lagging. Apart from this, there is no wiring involved which only makes the process neat.

Businesses usually choose VoIP because they need some customization options especially because they need something that can help them customize their image with a traditional phone, you will have a number that represents your location. As business demands are changing, it might be damaging for a company to represent only one geographical location. VoIP offers a non-geographical number that can help you receive a phone call in the UK with a number that represents Canada or America. VoIP offers a neat, easy to install, and easy to maintain system accessible for all. To offer complete control to the business owner it also offers software integration, rush hour customization, extension number, multiple call handling, call supervision, VoIP call recording, and much more

How does VoIP Works?

By now, you must be familiar with the general working of VoIP and how it converts voice signals into digital signals and then back to voice signals so you can listen to it. However, there is a lot more going on. When you call someone via VoIP you also need SIP compatible phone. In case you want to make it remote, just an app on your phone will be enough to keep you connected.

To replace the traditional number or telephone line, you will have an IP address that will help you call people. These IP addresses allow you to have a high-definition phone call that will allow you to use your computer, desk VoIP phone, or smartphone. Usually, VoIP is referred to as the IP phone or internet phone. However, sometimes it is also referred to as broadband phone or broadband telephony.

What do you need for VoIP calls?

For VoIP calls, your main requirement is a good internet connection. This will include the router and modem so you can have a seamless connection. Typically, a VoIP configuration consists of a desk phone along with a SIP server. All these things are provided by the VoIP service provider which means the user doesn’t have to look for these things separately. As the internet is much more advanced and sophisticated than a traditional analog system that only involved cables, you will have so many other features as well.

For businesses that run on customer privacy and security like the banking sector, financial companies, emergency services, or secret services, these VoIP phones are offered as the only viable option. You can easily manage the VoIP system via an online dashboard, where you can adjust contact details, extension number, call forwarding, automotive response, and more. Most businesses opt for VoIP because it helps them cut operational costs. According to an estimate, VoIP helps companies to cut communication costs up to 90%.

VoIP Offers Flexibility

One thing that separates VoIP from a traditional phone is the flexibility it offers. When you have a traditional phone, you need to stay in the office. The wire is generally connected to a traditional phone, which means if you leave the desk, you will miss the call. However, VoIP offers you a way to stay connected even if you leave the office.

Your VoIP system can be connected to your computer or laptop. It can also be connected to your smartphone and even your VoIP adapter. It all comes down to the business model of the company. If they have remote working staff, then computer might not be the best option. However, if they just want to stay connected with the team, a computer might be the best option. To discuss the details, here are three main ways you can connect your VoIP.

Phone or Adapter

When you connect your VoIP system to the VoIP adapter or a phone system, you will be respected at your desk. With a specialized adapter, you can also call the landline phone. A simple way to install this adapter is just to plug it into the sockets or router. usually, VoIP provider companies do not charge for installments which is the reason this will be completely free.

Computer or Laptop

A computer or laptop offers a little bit of mobility which helps people with remote meetings and staying connected. There are so many different software, programs, and apps that can help people to stay connected via VoIP. Some of these programs include compress pdf, google talk, skype, WhatsApp, zoom, etc. these apps are free but you can only call someone if they have the same app or have an account on these platforms. However, skype offers a simple credit buying method that can enable the user to call the landline, phone number or just call free via online service.


Most VoIP providers offer specialized apps that use your designated IP address to conduct and receive a call. However, there are free apps as well that offers audio and video call service. Some of the best free VoIP smartphone apps include WhatsApp, skype, zoom, facetime, google talk, etc.

The backend of VoIP

Most people get very curious when they realize there is a conversion going on behind VoIP. Most people are already aware that sound is converted into digital packets that are then shot across line, through the internet. However, there is hardware that is involved in this process. A simple way to understand the backend is to understand the way signals are used and then converted via various software and hardware.

Once you call someone, you need your laptop, computer, phone, VoIP set, etc.

Your voice signals are used by these devices and then through an app, your analog signals of sound are converted into digital waves. In case you are using a smartphone, the sound is converted via an app, however, if you are using a VoIP phone, you will have an adapter connected to your VoIP phone.

The digital signals via adapter are then relayed to the internet router where your internet service company sends these digital signals to the VoIP server.

When the digital packets reach the VoIP service which then routes it to the customer.

The digital waves are converted back to sound waves when they reach the customer.

Hosted or Cloud-based VoIP

Hosted or Cloud-based VoIP

Hosted VoIP or Cloud-based VoIP is an advanced VoIP system with all the data hosted on the cloud. Within the VoIP phone system, you will have multiple devices including a smartphone, VoIP phone, or a laptop. This will help you provide unified business communication. Commonly cloud VoIP system is also known as cloud PBX. It helps in providing easy access to data for everyone who has permission. It is up to the administrator to assign permission to all employees or only some designated employees. This process is much more sophisticated than a traditional phone.

Working on hosted VoIP

When your teammate calls a customer or any other person, they simply dial the number. This process is just the same as any traditional analog phone. After that, your IP phone relays information to your local area network switch and then to the business router that further communicates it to the Best VoIP service provider UK who then establishes the call. In case the network path supports the digital voice signals you will be able to enjoy an HD call. In case, it doesn’t support HD calls, the VoIP providing service then must connect the call via PSTN.

The use of hosted VoIP in business is becoming a trend because of its ease of use. However, a Cloud-based phone means the involvement of a third party that helps you host the data, and you can use it through them. On the contrary, if you wish to have a free medium, you need to have a PBX. Companies that generally provide customer care only use VoIP because it is easier to use.

Cloud-based VoIP System – is it Better?

On the contrary, if you have a business that relies on customers’ data and ensures their privacy, you can not rely on a cloud-based VoIP system. Most companies use PBX in that case. The banking system, financial aiding companies, law firms, and emergency reporting services use the house PBX system. For a good in-house PBX setting you need a SIP trunking telephone line. With the help of these lines, companies can not only communicate within the building and in other companies located in remote regions, but they can also talk to their clients.

Since this is a secure line and it offers complete control and privacy to the company, it can be a little experience. This is mainly because you are setting the internal communication system that lets you interact with other people of management and your clients as well.

Why Businesses Are Choosing Voip Over Traditional Phone System?

Businesses generally need a good and strong inner communication system that can help their teams stay functional throughout the day. Now that remote working is becoming common, they need something that can support their in-house team, intention team, and remoter workers, and that is where VoIP Phone service surpasses every other kind of communication system. Overall, it streamlines communication, offers an easy way to communicate, and cut operational cost. However, businesses need much more than to minimize their operational cost.

Some of the main reasons businesses are now switching to VoIP include:

Unlimited Free Calling

Most B2B businesses look for international clients so they can maximize their profit, however, to stay connected you might have to spend a fortune. With VoIP, you can enjoy unlimited international calls without thinking about the extra payment. You will not have to pay by the minute, and you will be saving a lot. In short, even if you hire an international team, VoIP will offer you a seamless Telecommunicating channel.

Easy Online Faxing

Most people do not like faxing and just sending an email, however, when it comes to legal documentation, businesses still rely on faxing. With the help of VoIP, you can send and receive unlimited faxes. You do not require any hardware or messy cables.

Automotive Response

In the fast-paced world, we live in today, response time counts. Customers usually reach out to the businesses and compare prices and response times. If you offer a good quote first, you will easily secure a customer. To minimize the response time, you need to have someone respond 24/7.  The automotive response will help you to greet add greeting messages. this will help in reducing the call handling time.  This offers better customer service, and your company can benefit from it by cutting down the 24/7 customer care resource.

Call Preference

Call preference or call queue service is open the main benefit of VoIP. With a traditional telephone line during rush hour, your client will have to wait, and you will have to sort out your busy team. With VoIP, the caller doesn’t have to wait, instead, he can easily move to the next agent. This means that customers can save time and your team can save time and resources as well.

Crystal Clear Voice

We have all been in situations where we try to ask the client about their details but miss a few words here and there. However, with VoIP, you will be able to enjoy HD calls with crystal clear voice quality. You will not have to ask your customer for a clear conversation or to repeat the information.

Group Chat and Conference Call

Traditional phone limits the audio and video call to just one user. This means you can only talk to one person at a time. However, with VoIP, you can enjoy group chats and group calls without any distortion. Most companies start their day with daily scrum so they can stay updated and with the help of a conference call feature, you can offer a better service to your client and improve coordination with your team. You can also record the conversation, moderate it, and set a time according to convenience.

Stay Connected with Smartphone

With VoIP, you do not have to wait for a call and stay glued to your office table the whole day. You can enjoy a conversation on the go as well. With a smartphone app, you can be anywhere and still stay connected with your team and clients. Most VoIP service providers offer a free android and iOS app that you can use.

CRM Integration

Imagine you can have access to all contact and information regarding your clients at the same place. That’s what cloud CRM and VoIP integration offer you. You can see a boost in your productivity, and this will also help you streamline your workflow.

Easy Team Collaboration

Chatting with your team and tracking their work progress on the same platform means you have full control over the work without making your employees and team members realize that you are micro-managing them. This is what VoIP offers you when you integrate it with your task managing software.

Text Messaging and Voice Mail

Voice mails and text messages offer an easy medium of communication because the receiver doesn’t have to stay always online. With work-based communication, these methods of communication come very handily. VoIP offers voice mail that you can send directly to email, or you can send a text message as well depending on the importance of the work.

Bottom Line

To sum it all up, the VoIP system helps you stay connected. However, it works more than a way of communication. VoIP is so far the best solution you can offer to a company or your employees. VoIP can help in reducing the working cost and improve the quality of work. So far, over 61% of the companies have already switched to VoIP and others are in process. Stats also revealed that almost 91% of companies with more than 11 employees are using CRM. This has helped the companies in improving communication and task management.

To ensure that they are streamlining their overall communication with management and client, they are now connecting VoIP with their CRM system. Big companies have international clients and they need to stay connected to them. Using a traditional communication system might cost them a fortune. With the help of VoIP, they can stay connected without paying too much.

Generally, VoIP offers free international and long-distance calls, which means companies that have international clients can cut their communication budget up to 90%. If you are new to VoIP you do not have to start from scratch, instead, you can use your existing telephone equipment and then design a VoIP system that uses your existing equipment. You are basically saving a lot on daily communication as well as setting and even by maximizing overall profit. Xinix guide to buying VoIP was created to help get you started.

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