VoIP (Voice over Internet Protocol) is a technology that transmits voice and multimedia session traffic over internet protocol (IP) systems.

It refers to communication services such as voice, fax, SMS, and voice messages through the internet instead of PSTN.

Every UC vendor – from Microsoft to Zoom – uses VoIP features to enable telephony and online collaboration.

The pandemic saw a massive rise in VoIP adoption, as per Transparency Market Research, and the market will be worth more than $278.53 billion by 2031.

This makes it vital for companies to know what VoIP is, how the technology works, and choose the right VoIP service provider for their needs.

How Does VoIP Work?

VoIP turns a user’s speech from audio impulses to digital data. This information is sent to another user or group of users over Ethernet or Wi-Fi.

To achieve this, VoIP will employ codecs which are hardware or software processes that compress and decompress massive amounts of VoIP data.

Compression may degrade voice quality, but it reduces bandwidth needs. Additionally, VoIP suppliers like Cisco will utilise their own codecs.

Sending data to other users encodes audio into data packets, delivers the packets over an IP network, and then rebuilds the packets back into audio at the other end of the connection.

The following are other elements of a typical VoIP system:

  • IP PBX for managing user telephone numbers, devices, and customers.
  • Gateways that link networks and enable failover or localised resilience in case of network failure.
  • Call policy management, and network connectivity, session border controllers (SBC) to offer security.
  • Location-tracking databases for the routing and administration of E911 calls.

Key Features of VoIP

Advanced voicemail and call forwarding
Most leading VoIP service providers will let users convert their voicemails to emails, as most VoIP packages include a voicemail system and the Find me/Follow me functionality.

This feature enables users to accept calls, regardless of location or phone number.

This makes it simpler to contact workers (especially contact centre representatives) while they are not in the office.

Conference calls
Some employees may make conference calls on a regular basis, and contact centre agents may need to loop supervisors into a group conference.

In addition to providing conference calls, efficient VoIP systems also allow users to share files, chat messages, work together on calendars, collaborate on presentations, and even desktops.

Different types of call routing
VoIP solutions enable companies to shape call routing regulations for customer calls. This consists of:

List-based routing – Calls are routed according to a predetermined, linear list that begins at the top following each call.
Round-robin routing – A turn-based routing technique in which the first call is routed to Agent A, the second to Agent B, and the third to Agent C.
Skills-based routing – Calls are routed based on agent abilities, fields of specialisation, and skill sets.
Time-based routing – Calls are routed based on particular agent scheduling and/or time zone differences.
Relationship-based routing – Calls are routed to agents based on existing contractual obligations.

Call recording
Call recording is a subset of call monitoring that either continuously records or manually records calls between participants.

Due to the internet dependence on VoIP services, the cloud automatically stores these recordings so users can refer back to them.

Services can automatically transcribe call recordings, and key phrases can search through the transcriptions.

Virtual numbers
VoIP lines can route calls to an actual phone number or a virtual one. To establish a genuinely virtual presence, they could also use any area code.

This allows for greater scalability, which leads to more flexibility within companies and permits the addition or removal of extensions.

Pros and Cons
VoIP technology lowers the cost of personal and business phone communication to almost nothing.

It also offers economic video conferences, conference meetings, and webinars for business and personal usage.

The primary disadvantage of a VoIP call is that users might experience latency (given that sound is transmitted in packets, there is a tiny delay).

Some VoIP services are not available during power outages if neither the user nor the service provider has backup power.

These are some of the factors to consider before choosing a VoIP technology provider.

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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