What is VoIP & How Does it Work?
Choosing a phone system for your company is an important step for small businesses and large corporations alike. Weighing the options of cost, reliability, and features are all important factors to consider. Your research for the best business solutions may lead you to ask what is VoIP. Well, you’re in the right place. Here, we’ll break down everything you need to know about VoIP to help you find the right business solution to fit your needs.
What is VoIP?
Voice over Internet Protocol (VoIP) is a technology that allows you to make voice calls using a broadband Internet connection instead of a “regular” (aka analog) phone line.
Not all VoIP offerings are created equal. Some may allow you to call others who use the same service, while other VoIP services connect you with anyone worldwide with a phone number. Another distinction in VoIP service is that some require a special VoIP phone while others allow you to use your phone with a VoIP adapter.
How Does VoIP Work?
There are four key steps in understanding how VoIP works.
- Your phone connects to your switch or router in your Local Area Network (LAN)
- When a number is dialed, your phone connects with your VoIP service to place the call
- The VoIP service establishes the call, exchanging data with your IP phone
- The VoIP phone converts digital signals into the sound you hear on the line
Benefits of VoIP
When considering the many benefits of VoIP, it’s easy to understand why it’s a popular choice for business phone services. Here are a few reasons companies turn to VoIP services.
- Lower costs compared to landlines
- Improved call quality
- Global calling with inexpensive rates
- Easily integrated into a remote work setting
- Advanced customer service features like auto attendants and call queues
What Equipment do I Need for VoIP Service?
Broadband (aka high-speed Internet) via a cable modem, DSL, or local area network is required to use VoIP. Beyond that, your VoIP provider will likely offer two integration options: hardware or software.
Hardware is a traditional desk phone, while the software option uses your computer software to make and receive calls.
VoIP vs. Landlines
If you are weighing the pros and cons of a VoIP or landline system, here are three questions to ask yourself before making a decision.
- How reliable is your Internet? Because a VoIP service is dependent on an Internet connection, it’s crucial that you have strong bandwidth and fast Internet. Landlines are known for their reliance against outages.
- How fast is your business growing? VoIP systems offer the benefit of scaling quickly and adapting to fast-moving technology advancements. Landlines and analog systems can be more expensive to upgrade.
- How much do you want to spend? It’s a common misconception that landline connections are less expensive than a high-tech VoIP line. In fact, landlines often cost more money. For a quote and a full list of features, reach out to Optimum Business.
Choosing a VoIP Provider
There are a few key factors in vetting service providers for your business. Among other things, you’ll want to compare pricing, service offerings, customer service hours, and their compatibility with your current IT platform.
At Optimum Business, we’re committed to you and your business. Our U.S.-based customer service team is available 24/7/365 and we offer same-day service in case something goes wrong. To learn more about Optimum’s VoIP offerings, reach out via chat or give our team a call from our Contact Us page.
Next: Learn why VoIP is great for small businesses.