What Is VoIP and How Does It Work

The way businesses communicate has changed considerably in recent years. Traditional landlines are gradually being replaced by more flexible, internet-based telephone systems that allow teams to make and receive calls from almost anywhere.

One of the technologies behind this shift is VoIP. But what exactly is it and how does VoIP work?

What Is VoIP?

VoIP stands for Voice over Internet Protocol. Put simply, it allows you to make telephone calls using an internet connection rather than a traditional analogue phone line.

Instead of your voice travelling through copper telephone cables, VoIP converts it into digital data and sends it across the internet.

For businesses, this means telephone systems are no longer necessarily tied to a physical phone line or even a particular location. Employees can potentially access their business number through desk phones, laptops, computers and mobile devices.

How Does VoIP Work?

So, how does VoIP work when you actually make a call?

When you speak into a VoIP-enabled phone or device, your voice is converted into digital information. This information is broken down into small packets of data and transmitted across your internet connection.

When those packets reach the person you are calling, they are converted back into audio so that the recipient hears your voice.

All of this happens almost instantly.

If you are calling another VoIP user, much of the call can take place entirely over the internet. If you are calling a traditional landline or mobile number, your VoIP provider connects the internet-based call with the relevant telephone network.

From the user’s perspective, however, making the call should feel much like using any other telephone system.

What Do You Need to Use VoIP?

One of the main things a business needs for a reliable VoIP system is a stable internet connection.

Because calls are transmitted using your network, the quality and reliability of that network can have a direct impact on your telephone service.

Businesses may also use VoIP-compatible desk phones, headsets or applications installed on computers and mobile devices.

The exact setup will depend on how your team works. An office-based business may still prefer physical desk phones, while a business with remote or hybrid employees may benefit from having calls available across laptops and mobiles as well.

What Are the Benefits of VoIP for Businesses?

VoIP can offer considerably more flexibility than a traditional telephone system.

Because your numbers are not necessarily tied to individual physical lines, it can be easier to add new users as your team grows or make changes when employees move locations.

It can also support remote and hybrid working. Employees can access their business communications away from the office while still presenting the same company telephone number to customers.

Modern VoIP systems can also provide additional functionality such as call forwarding, voicemail, hunt groups, auto attendants and call reporting.

This can make it easier to manage incoming enquiries and ensure calls reach the right people.

Can You Keep Your Existing Telephone Number?

In many cases, yes.

Existing business telephone numbers can usually be transferred, or ported, to a VoIP service. This means businesses can upgrade their telephone system without having to change the number their customers already know.

Number porting does need to be planned correctly, particularly if you have several numbers, departments or locations.

Working with an experienced IT and communications provider can help make sure the transition is properly managed and disruption is kept to a minimum.

Is VoIP Reliable?

A properly configured VoIP system can provide highly reliable business communications but the underlying network is important.

Poor broadband, incorrectly configured networks or insufficient bandwidth can affect call quality.

This is why moving to VoIP should involve more than simply installing new phones. Your existing connectivity, network infrastructure and business requirements should be reviewed to make sure the solution is appropriate for the way your organisation operates.

Having suitable backup and continuity measures in place can also help keep your business communicating if there is a problem with your main connection.

Is VoIP Suitable for Small Businesses?

VoIP can work particularly well for small and growing businesses because it is highly scalable.

Rather than installing additional physical telephone lines every time the team expands, new users can often be added much more easily.

It also gives smaller businesses access to communication features that may previously have required expensive on-site telephone equipment.

Whether you have a small office, employees working from home or a team spread across several locations, a VoIP solution can be configured around how your business actually works.

Moving Your Business to VoIP

Understanding how VoIP works is relatively straightforward: your voice is converted into digital data, transmitted over the internet and converted back into audio at the other end.

Getting the right VoIP system for your business, however, requires a little more planning.

Your internet connectivity, existing telephone numbers, call routing, remote working requirements and plans for future growth should all be considered before making the switch.

NetVector can help businesses find communication and IT solutions that work for the way their teams operate. From reviewing your existing setup to implementing and supporting your new telephone system, NetVector can help make the move to VoIP straightforward.

Thinking about upgrading your business telephone system? Get in touch with NetVector to discuss your requirements.