How Does VOIP Work? 6 Benefits For Business Today

people having a conference call

VoIP stands for Voice Over Internet Protocol. In short, you can run your telephone system through your computer network.

The technology is credited to Dr. Marian Croak, and the first major VoIP applications gained traction in 1995.

The technology has become much more mainstream outside of the office. Skype, FaceTime, and even Discord are all forms of VoIP communication. Yet it’s still a great business tool.

It is a really great tool because it has many advantages. You can use this communication system in your business without the space requirements and equipment costs. It  provides 24/7 fluent communication which makes your working routine much easier.

Are you asking how does VOIP work and how does it benefit your business? Read on to learn more.

1. Save Money Using VoIP

VoIP is often cheaper to run since it’s considered an information service. As it isn’t a telephone service, providers don’t need to pay the same high taxes as telecom firms. 

A provider like Be Structured hosted VoIP can help you decide between hosted VoIP solutions and on-premise options.

2. Free Yourself From Your Desk

VoIP systems let you direct any type of communication to any registered handset. Voice mail, phone calls, email – they can all go to your designated phone.

The beauty of this means your designated phone can be a cell phone. Many of us discovered the flexibility of remote working during the COVID-19 pandemic.

With VoIP, you’re not tethered to your desk. You can take calls or video conferences wherever suits you.

3. Open Up Your Communications

You may wonder if your business even needs a phone number thanks to Skype and Zoom. Just remember not everyone is familiar with these technologies.

Some people will still prefer to use the telephone. Providing a VoIP number means they can still contact you.

Yet that number isn’t tied to a specific line or handset. You and your staff can log in and take calls from wherever you have an internet connection.

There’s an extra benefit too. You can often make international or long-distance calls for free over VoIP.


4. Avoid Needing Multiple Phone Lines

Analog telephones – also known as landlines – only take one call at a time. That’s all the copper wiring can handle. They transmit phone calls as signals across a circuit.

VoIP systems send data in packets. It only takes up bandwidth when it’s in use. So unlike those copper landline connections, you’re not restricted to one call at a time.

5. See Networks in a New Way

The fact that the VoIP number is assigned to an individual, not a handset, has an extra benefit. You don’t need to install a new line every time you have a new member of staff.

One VoIP phone can manage several numbers. Extensions can serve groups of employees. Or they can plug their phone in at communal ports to start a call.

6. Don’t Get Bogged Down by Bad Connections

Breaking the data into packets makes the system more efficient. These packets pass through a series of nodes between you and your recipient.

If one node gets busy? The system redirects data packets to other nodes. That means you won’t notice when there’s a lag in the connection.

Wonder How Does VoIP Work? Wonder no more.

If someone asks you “how does VOIP work?” Now you can answer! It’s a sophisticated way to break voice signals into data packets. 

They’re sent through the internet where the system reassembles them. It happens so fast that the call seems as instant as an analog call on a landline.

Keen to boost your business with new systems? Check out our technology articles for more tips and advice.