DECEMBER 27, 2021 | Frank Smith

What is a VoIP Phone System and how does it Operate? 

The advancement in technology has been on the boom since the mid of the 20th century. We have seen the biggest technological revolution in the form of the internet in the very same period. And this innovation of the web has transformed almost every industry and the communication industry is no different. The phone technology has improved from the landline phone system to VoIP technology. Although the old traditional phones are still in use in some parts of the world, yet most businesses have upgraded their office phone technologies with a VoIP phone system.   

The VoIP system was introduced in 1995 but at the time, this technology couldn’t impress the business world. The quality of the call it offered back then was not up to the mark. But the VoIP technology (often called Cloud PBX) of today not only offers better call quality than all other communication systems but this phone system is a lot more economical too. Continue reading, if you wish to learn in detail what this technology is all about and how does it work.   

What VoIP Technology is all About: 

Although VoIP has become a buzzword today, the technology is a lot more than just a funny-sounding acronym. It stands for a huge step forward in the improvement of modern business phone systems. VoIP (Voice over Internet Protocol) is a phone technology that uses the internet to carry out all types of communications. Though the first-ever VoIP technology was introduced in 1974, yet the internet-based VoIP was launched in 1995. And with time, the internet speed, as well as the technology itself, has improved a lot and the cloud PBX of today has no match. Hence, VoIP telephony has become the default choice of businesses for their communication systems. 

How Does a VoIP Phone System Work?  

VoIP is a packet-switching telephone network that, unlike traditional phones that work through circuit wiring, uses the internet to make and receive phone calls. It is different from traditional office phone systems because rather than sending the voice (analog) signals to the receiver, it first converts them into digital data. After the conversion, these data packets are transmitted over the internet, and at the receiver end, they are again converted to their original form.   

The newly converted data in analog form becomes an understandable message for the receiver. And to your surprise, all these conversions and reconversions take place in microseconds and you don’t get even a hint of it. As there is little infrastructure involved in this communication system, making calls through it is uncomplicated. This is also one of the reasons why VoIP has become the choice of every business. 

Advantages of a VoIP Technology: 

The following are the benefits you can avail with the VoIP phone systems, 

Cost-Effective Solution: 

Whether you are a startup, a small-medium-sized business, or a large enterprise, you all have a common goal; reduce the cost and increase the profits. And when it comes to a communication system, you can achieve this goal by upgrading your phone system to VoIP technology. With this phone, you don’t require any special hardware and circuit wiring; you can use your existing internet and laptops to do all types of communications. 

Furthermore, as VoIP works through the internet, the per-call cost of VoIP is also more competitive than other phone systems. Additionally, some VoIP service providers are even offering free local calls. This means if you have only local clients, you can run your communication system for free. Also, the maintenance of the phone system is on the service provider; you don’t need to have a team of professionals to do the job. Hence, with VoIP, you can save a lot of money that you were spending on the maintenance of traditional phones. 

Offers an Extensive Range of Telephony Features: 

Despite having fewer hardware requirements than hybrid systems, VoIP phone systems are packed full of features. These features are very useful for the growth of your business. The features like video conferencing, call forwarding, and call transfer allows you to manage your business remotely. Furthermore, its call monitoring and call recording feature help you in analyzing the performance of your employees. Besides the aforementioned features, there are a great many others too. 

Increased Flexibility:  

VoIP phone system offers a great deal of flexibility; the technology allows you to use any internet-enabled device to communicate with others. Also, you don’t need to be present on your desk for taking and making calls. If you wish to upgrade your phone system with VoIP, go with IPPBX. because they have the best service in the market.