What Is VoIP and How Does It Work?

Forget about phone cables, handsets, and circuits. Thanks to VoIP technology, you can make calls whenever and wherever you want, as long as you’re connected to the internet.

But what exactly is a VoIP and how does it work? And more importantly: how do you choose the right VoIP provider?

Read on to learn all you need to know about VoIP technology. 

What Is VoIP?

Simply put, VoIP (Voice Over Internet Protocol) lets you make or receive calls over the internet instead of traditional landlines. 

The three main types of VoIP services are Cloud VoIP, On-Premise VoIP, and Residential VoIP. 

In this article, our main focus is on exploring Cloud VoIP technology. It is a business phone solution, hosted on a cloud server instead of on-premise hardware. 

How VoIP Works

VoIP functions like any other data that you send over the internet, such as emails. It turns your voice into a digital signal (data packets) using codecs and sends it over an IP (Internet Protocol) network. You can transmit VoIP packets over any VoIP-compatible network, such as a local area network (LAN). 

On the receiving end, the data packets get re-converted into sound again, making communication between two or more parties possible.

The solution, therefore, allows you to make calls from any computer, VoIP phone, or other data-driven devices, via the internet. 

With VoIP, you can also route phone calls between internet-based solutions and traditional phones. This allows you to reach your customers on their devices as well. 

A VoIP phone system stores all your data in the cloud which you can monitor through an online dashboard. On this dashboard, you can also modify your contact list and apply additional settings and automation. 

ud VoIP, On-Premise VoIP, and Residential VoIP. 

In this article, our main focus is on exploring Cloud VoIP technology. It is a business phone solution, hosted on a cloud server instead of on-premise hardware. 

  • Advantages of Using VoIP
  • VoIP Is Cheaper
  • Automate and Optimize Your Processes
  • Calls From Anywhere in the World

Why are so many businesses switching to a Cloud VoIP solution – and why do we think you should do the same?

We collected some of the main reasons your business would benefit from a cloud-based Voice Over IP solution. 

Before we get to how you can sell more by switching to VoIP, let’s explore how it helps you cut costs. 

First of all, VoIP uses your existing internet connection rather than requiring a separate system, external hardware, and expensive copper wires to make phone communication possible. 

If your business operates in multiple countries, international and long-distance calls are generally much cheaper with VoIP service. As you don’t rely on phone wires, you pay based on the receiving region’s calling rate, not your current location.

This point alone can lower your bills by over 60%.

Since VoIP calls happen through the internet, it gives room for plenty of digitalization and automation, making life easier for all team members.

While you can only use one phone number per landline, VoIP solutions don’t limit you to only one VoIP phone number. The technology allows you to handle multiple requests with different phone numbers simultaneously.

VoIP telephony software solutions, such as VoIPSolutions, also offer a wide range of features to help you keep costs low, train your team more efficiently, and reach new revenue records.

Some of the most popular automation features include IVR flows, Smart, Power, and Predictive Dialing, Automated Call Distribution (ACD), Skill-Based Call Routing or Business Hour settings. 

Call monitoring, Agent reporting, and the Real-time dashboard help you provide quality service at all times. 

Traditional phones use analog wires to carry voice signals, but with VoIP, voice information is converted, sent, and stored in the cloud. You only need the internet to access it, which means that as long as you’re online, you can take and make calls anywhere in the world. 

This location-independent flexibility allows you to hire team members from any country and let your agents work from home.

VoIP also allows you to turn any device into a telephony solution, such as your laptop, tablet, or smartphone, so you can do business from any of them.    

Because VoIP uses the internet, the voice quality stays high regardless of the country you’re targeting, and call rates don’t change either when you cross the border. The cost of the call depends on your target country, not the country in which you reside.

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