VoIP definition, functionalities, features, benefits, and how to get started

Voice over internet protocol (VoIP) converts phone calls into data and sends it over the internet.

VoIP provides advantages over traditional phone services, and service providers in this segment do more than offer phone conversations.

In conventional telephones, voice communications are powered over analogue lines.

In contrast, users can utilise VoIP solutions on any computer because they are based on open standards.

Anyone with an internet connection can use VoIP technology to make calls without using a local phone service.

If there is a strong Wi-Fi signal, ethernet connections are not required, and it achieves this for a fraction of the price of traditional phone systems.

VoIP is more flexible and mobile-friendly than traditional landlines because it does not require on-premise Private Branch Exchange (PBX) systems.

How Does VoIP Calling Work?

PBXs connect internal phone extensions to the public phone network, but the cost of installing and maintaining a PBX has typically been high.

Thanks to VoIP technology, traditional telephony services can now be supplied through computer networks using packet-switched protocols.

In a packet-switched VoIP landscape, voice signals are transmitted in data packets.

Any VoIP-compatible network can carry VoIP packets, including a local area network (LAN).

The following steps explain how this works:

Firstly, the phone connects to a router or switch in a LAN.

When users dial a number, the IP phone notifies the VoIP service provider to contact the other party.

The call is then established, and the service provider exchanges data packets from the IP phone.

These digital signals are then converted back into audible sounds by the VoIP phone to enable users to hold a conversation.

Essential Traits and Features of VoIP Calls

Here are the VoIP features that many providers offer that will benefit businesses:

  • Conference features – You can set up VoIP to have multiple lines coming in and have the ability to conference call with anyone. The best VoIP systems allow users to communicate and collaborate on calendars, files, chat messages, share presentations, and desktop screens in addition to conference calls.
  • Auto-attendant – The auto-attendant can be programmed to give specific instructions for after-hours calls, holidays, or when the regular office staff is unavailable.
  • Call recording – A good VoIP system allows users to rapidly and easily record calls and save them as an audio file that can be played back later.
  • Call alerts – This function sends an email notification to authorised workers when a specific call comes in. Users can establish a set of call criteria to improve the call-notify feature.

Key Benefits of VoIP over PBX

The following are the key benefits of VoIP over traditional PBX:

Managing a single IP Network

VoIP uses your company’s existing IP network to make and receive calls.

The same data lines used for internet access are used for VoIP telephone service.

This allows businesses to manage a single IP network rather than two separate networks (data and voice).

IT staff can quickly expand a VoIP system as the needs of the business change.

Employees can be added without purchasing or leasing a new telephone line. With a VoIP system, businesses only pay for the users they need.

Cost Savings
With VoIP, users can make long-distance and international calls at a fraction of the cost of traditional phone services.

It also eliminates the need for a separate voice and data network, saving money on installation and maintenance.

Increased Productivity
A VoIP system can offer increased productivity for employees.

Businesses can add call forwarding, caller ID, and voicemail to their phone system with VoIP to help employees be more efficient and productive.

Setting Up VoIP infrastructure

Here is a step-by-step process to set up a VoIP infrastructure:

  • Before purchasing a VoIP system, conduct research – Before establishing a VoIP system, assess the internet connection’s quality. It is also worth considering whether you want additional gear or an IP phone.
  • Determine the number of users and lines required – A single-person business will most likely only need one or two lines. A company with hundreds or thousands of people will probably have different requirements.
  • Calculate the cost of services and any additional fees – The monthly cost of VoIP is determined by the number of lines purchased. Cloud service providers usually charge a fixed rate when clients acquire many phone lines.
  • Locate a VoIP service provider – Numerous VoIP phone service options are available. Businesses can choose whoever best meets their demands.


Voice over Internet Protocol (VoIP) is a well-established technology that allows anyone to make phone calls over the internet.

With broadband development, VoIP has become the clear alternative for customers and businesses alike for telephony services.

VOIP stands for Voice Internet Protocol. VoIP is a software-based technology that allows telecommunication services to be made over an IP network, which is a internet broadband connection, rather than using traditional PSTN phone lines.


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