How Does VoIP Work? A Complete Guide to Functional VoIP

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How Does VoIP Work? A Beginner’s Guide to Functional VoIP

Did you know that voice over internet protocol or VoIP is a multi-billion industry worldwide? As a matter of fact, while the current global market is at $39.5 billion, analysts expect it to grow into a $125 billion market within the next half-decade.

With its continued growth, the use of VoIP gives a lot of advantages to your business. You have to hop on it now.

But how does VoIP work? If you want to know more, read this complete guide to ensure that you understand what a complete, functional system can do for you.

What is VoIP?

VoIP is a great voice communication solution that functions like any other data sent over the internet. It converts your voice into data packets and gets it sent over an IP network. What this means is that traditional phone lines become unnecessary since you use your internet connection to make the calls.

A good example of a VoIP system app is the LogMeIn owned Jive. It lets you make calls at lower rates. Its best feature is Video chat coupled with video conference options as well. Ever since then, a lot of VoIP services aim to replicate its features but most of these have mixed degrees of success.

What are the Types of Voice Over IP?

The interesting fact about VoIP systems is that you can place calls in different ways. As it stands, there are three different types of VoIP services that people use the most in today’s society. These include:

1) Analog Telephone Adaptor (ATA)

ATA is the simplest, most common type of VoIP service. It lets you connect your standard, analog phone to your desktop unit or directly to your internet connection. ATA has an analog-to-digital converter that uses the analog signal from the phone, converts it into data, and transfers it over the internet.

To use this, get the ATA out of its package and plug your phone to it instead of the standard wall socket. Once you accomplish this, you can call other phones with the use of the VoIP service. There are some types of ATA’s that come with additional software that allows you to configure it with the use of your desktop unit.

But no matter what the case may be, ATA is a straightforward system that needs a little setup to function.

2IP Phones

These devices have specialized functions despite looking like a normal phone that comes with a handset as well as cradle and buttons. These phones come with the RJ-45 Ethernet connector instead of the standard RJ-11 ones used for standard phones. These devices will connect straight to your internet modem while packing all the needed hardware and software to facilitate the IP calls.

There are Wi-Fi phones out there too. It enables you to make VoIP calls with the use of wireless internet connections. What this means is that you can make calls whenever you’re in a Wi-Fi hotspot.

3) Computer-to-Computer

Among these three common types of VoIP, this one is the easiest in terms of use. There isn’t even a need for you to spend money on long-distance calls. You can take advantage of several companies and their free or low-cost software that enables you to use this type of VoIP method.

The common set-up includes the software, microphones, speakers, sound cards, and a good internet connection. You need to ensure that it’s fast, something that you can get with the use of cables or DSL modems. No matter which country you call to, the only fee you’ll need to pay for is the normal fees you pay to your internet service provider every month.

What are the Benefits of Using VoIP Phone Calls?

VoIP’s advantage is that it’s simple to use compared to other technologies that improve communication capabilities. However, here are some of the ways it can affect your business for the better:

1) Improved Accessibility

Despite VoIP’s differences compared to traditional phone systems, it gives your business more access to communication. It isn’t affected by location, meaning you can make calls despite not having good phone lines in your area. As long as you have a stable, decent internet connection, VoIP systems can handle calls no matter where you are in the world.

2) Cost-Effective

VoIP comes with a lot of features that require extra payment when you use its traditional counterpart. The system includes call forwarding, call waiting, caller ID, voicemail, and conference call capabilities on its base package. If you pick the right provider, it’s possible for you to gain access to other nifty features as part of your basic VoIP system package.

Compared to traditional phone handsets, VoIP is cheaper. You can also set it up faster without having to purchase a system as long as you go for a hosted solution.

3) Improved Business Productivity

Adding the benefits of VoIP systems all aim towards efficiency and productivity for your business during your operating hours. With this, you’ve ensured that your employees have the capability to multitask without worrying about untoward interruptions. As long as you maintain your internet connection, your business can make calls no matter how many people do so at the same time.

The cheapness of the system will let you save more money towards other business needs. This makes your company more efficient in terms of finances.

How Does VoIP Work? Learn It Today!

Most small businesses still getting started often ask, “how does VoIP work?” It’s a new system far different from traditional phone lines, after all.

If you’re one of these companies, you can at least have an idea now that you’ve read this simple guide. Its operation is simpler than traditional telephone systems, and its benefits over it can make it hard to pass up especially if you’re starting out.

Don’t hesitate and embrace change. Adapt to a VoIP system for your communication needs. This ensures that your business stays relevant and competitive.

Do you need to set up your own VoIP System? Contact us today and we’ll help you get started.