What is VOIP? Benefits, drawbacks, and how it works

What is VOIP?

VOIP stands for Voice Over Internet Protocol and is a method for sending telephone calls over the Internet using standard lines. This technology offers advantages as well as challenges and is one of the network telephone services.

How VOIP works

Traditional telephone calls rely on analog audio signals that are transmitted over telecommunications networks. In VOIP, the audio is converted into digital packets and sent over the Internet. When you call another VOIP phone, these digital packets are received and you hear the other party. If you call a traditional phone, the digital packets travel over the Internet and are converted back to an audio signal via a gateway that connects your VOIP system to the PSTN. This gateway acts as an interface between your VOIP system and telephone lines.

VOIP benefits

Cost-effective

VOIP costs are significantly lower than standard telephone lines. Depending on the size of the business and defined requirements, you may avoid investing in new hardware. You typically just pay for Internet service; other costs are reduced. VOIP can be integrated with network support to further reduce costs. In-city calls may be free in some cases.

Mobile/desktop apps

Many VOIP providers also offer mobile or desktop apps, allowing calls to be made using data on your device, facilitating cost savings and convenient access.

Scalability

VOIP scalability is straightforward as the organization grows; you can add users by configuring settings in network support rather than buying expensive hardware.

No need to change numbers

For teams without high technical expertise, moving to a new office location does not require a specialist to set up a new line; your number stays the same. For ongoing maintenance, you do not need to notify customers of a new number. This is beneficial for non-static companies.

Drawbacks of VOIP

Now let's mention some drawbacks to help you judge.

Internet outage = calls become impossible

If your Internet service or power is out, you cannot place calls. This dependence on your network is a key drawback of VOIP.

Emergency calls

Most VOIP systems do not automatically support emergency calls; therefore having at least one standard telephone in the company as a fallback is essential.

Call quality

Voice quality is often good and can exceed standard telephone lines, but if the network is slow or congested, call quality can be significantly affected. Monitor your Internet connection before adopting VOIP.

Key features of VOIP

Key features of VOIP are:

• Voicemail
• Voicemail transcription
• Integration with office apps like Outlook
• Caller ID
• Conference calls
• Emergency calling (911)
• Unlimited calling to the United States and Canada
• Virtual extensions for each line
• Dial-by-name
• Mobile and desktop apps

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