What Is a VolP Phone and How Does It Work? A Complete Beginner's Guide

With growing advancement in industrial technology, newer and better tools are entering the market. One such tool is the VoIP phone that uses the Internet to make and receive calls over short and long distances. Many businesses have transitioned from traditional phone lines to VoIP because of its cost-effectiveness and resourcefulness. 

This guide will offer a comprehensive explanation of the VoIP phone system and why it is a better option than traditional phone lines. 

What is a VoIP Phone?

VoIP phone is an internet-based tool that uses the voice over Internet Protocol technology to make and receive calls. 

A VoIP Phone system is not restricted to a desk or limited by wires. Instead, it works on an app on any compatible device over an IP network. 

How Does a VoIP Phone Work?

VoIP phones convert voice calls into digital signals that are delivered from one place to another through IP networks. They either work through a physical device or through an application installed by a VoIP provider.   

They bypass phone lines and use the Internet infrastructure for outgoing and incoming calls. This is an effective and modern business solution that reduces cost effectively. 

Types of VoIP Phone

There are two main types of VoIP phones, hardware-based and software-based systems. Most VoIP providers offer both kinds of services to their customers. 

1. Hardware-based VoIP are physical devices, similar to traditional phone systems, that work over the Internet. They have features such as microphone, touchpad, and a display to show caller ID. 

2. Software-based VoIP, also called softphones, consist of an app or software that needs a compatible device and a steady broadband connection to work. It is equipped with the same advanced features as a hardware-based VoIP system.

VoIP Phones Vs Traditional Phones

The basic difference between the two phone systems lies in their operation. While a traditional phone system relies on physical wiring and cellular phones, a VoIP system uses the Internet to make and receive calls. 

Another major difference is the cost of each phone system. Deploying a landline and its wires across an area costs much more than using the IP networks for VoIP phone systems. 

For this very reason, many businesses have cut the cord and shifted to VoIP phone systems, reducing the load on their annual budgets significantly. 

Advantages of VoIP Phone

Here are some advantages of using a VoIP phone system in your business. 

• Compared to traditional telephone systems, a VoIP costs significantly less. In addition, the prices for making international calls through  VoIP is relatively cheaper than doing it through a traditional telephone.

• A VoIP cuts the need to install bulky hardware in offices. Through a simple internet connection, a VoIP gives the flexibility of calling anyone anywhere in the world. 

• Many VoIP providers offer advanced calling features such as auto-attendant, call routing, call recording, voicemail sent to email, conference calling, and many more.

• It is easier to scale with a VoIP. You can contact your provider and they will seamlessly integrate more phone lines into your existing setup. 

Takeaway

VoIP is a trending tool in today’s business world, and it is proving to be an effective business solution. Companies are employing the VoIP phone system to streamline their operations, boost productivity in their team, and improve their customer service.