What is VoIP and How Does a VoIP Phone System Work? 

Besides many other aspects, a good communication system is a must for the success of a business. Organizations have been relying on copper wires enabled phones for years and they were somehow managing their business with that technology. But today (an era of the internet revolution) is not a good time to rely on conventional phone lines. First, because they are costly, second, they are difficult to manage and third, they are not secure and reliable. For a few years, all visionary companies have shifted to VoIP technology to avail themselves of a better communication system. A VoIP phone system can help businesses make calls anytime, anywhere using only an Internet-connected computer, and a headset. 


The Cloud PBX technology (or VoIP) converts voice signals into digital signals and sends them in the form of data packets. These data packets are delivered through the internet and then reconverted to analog signals. The receiver will be then able to understand the message. This fact sheet will shed light on the basics of this technology, how does it work, and why this Business VoIP solution is replacing the older technologies. 

What VoIP Technology is all About: 

Voice Over Internet Protocol (some refer to it as IP telephony, too), is a communication technology that enables you to make and receive calls via the internet. It is different from the landline technology where callers communicate over the Public Switched Telephone Network (PSTN). VoIP ensures voice communications using data packets over a packet-switched network, which we know as the internet. You only require the service of a Cloud PBX provider and any internet-enabled device (installed with VoIP app) for communication.  

With VoIP phones, you don’t necessarily require phones, analog lines, or circuit transmission for making a call. It can work with cell phones, desk phones, mobile devices, and even systems equipped with headset microphones (softphones). This means this business VoIP solution allows you to communicate with new as well as old hardware.  

How a VoIP Phone System Works: 

Before diving into the details of how VoIP technology works, let’s discuss how communication technology has changed over the years.  

Transformation in Communication Technology: 

The business phone system started with traditional phones that worked through copper wired phone lines. Their installation, as well as maintenance, was very expensive. If you wanted to expand or downsize your business, you were needed a team of experts from the service provider to modify the phone line. Also, users were charged heavily for each call especially when they are making long calls. Then came the trend of an on-premises Private Branch Exchange (PBX). This bulky machine had expensive hardware to buy and maintain. However, it can handle all routing and ensure each call reached its proper destination. 

Then came the cloud-based VoIP phones. They are not only economical and easy to install but their features far exceed those available on old PBX systems. This phone system enables you to make phone calls through your internet connection instead of a regular landline or a mobile network. This technology converts analog voice signals into digital signals over your broadband connection. All VoIP phones allow you to make calls on other VoIP phones but some even facilitate you to make calls on the traditional landline phones.  

The Working of VoIP System: 

This technology was introduced in 1995 but it got into the limelight since internet technology become more sophisticated. The fiber optics increased the internet speed many folds, and this speed made VoIP phone systems deliver even better-quality voice calls than landlines. Moreover, since its inception, the VoIP technology has also seen great improvements in features and overall working.    

The installation of VoIP phones is very easy, you only need a service of VoIP provider, high-speed internet, and a computer, mobile, or a desk phone and you are all set to make calls. Moreover, you don’t require a professional team to maintain this system. You can handle it even with a few clicks and the upgradation as well as the repairing of the system is entirely on the service provider.  

Additionally, the VoIP technology comes with a lot more features than other phone systems. You can not only make voice calls but also do video conferencing, call recording, call analytics, file sharing, instant messaging, and much more. Furthermore, this communication system is a lot more secure than other phones which is a big plus point.   

Wrap Up: 

The communication systems are constantly transforming because of the change in business requirements. The technology has finally reached a VoIP phone system that allows businesses to make calls, messaging, email, mobile apps, chat, and video conferencing to communicate internally and externally on any given day.  

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