What Is VOIP? How Does It Work

Gone are the days when you had to rely on copper wires for making a phone call to a loved one. Nowadays, VoIP is a more cost-effective option that involves the transmission of voice over an internet connection. With the help of VoIP, you can make calls using your laptop or smartphone.

VoIP offers a lot more features than just regular voice calls. For instance, you can record calls, set up voicemail, check email, or create a custom caller ID, which makes it a perfect fit for businesses. Today, people prefer VoIP calls over ordinary phone calls as it offers a wider range of features and comes at a more affordable cost.

As long as you have a fast and reliable internet connection like Spectrum in handy, you can make use of this outstanding technology and save a good amount of money. To make the most of VoIP, you must first understand how it basically works, its advantages, and how it can help you grow your business. So, without any further ado, let us get started:

What does VoIP Mean?

VoIP or Voice over Internet Protocol refers to the technology that enables you to make or receive calls using the internet. You are not confined to your desk phone as VoIP allows you to make phone calls using your laptop or smartphone. Be it a local or international call, VoIP proves to be much cheaper as compared to the telephone.


In addition to being cost-effective, VoIP also provides many advanced features including call waiting, call attendants, or multiple phone numbers, etc.

How does VoIP Work?

VoIP works by converting the voice signals into digital signals and transmitting them over an Ethernet or Wi-Fi network. The process involves transferring data to other users over an IP network, where audio signals are transmitted in the form of data packets. Indeed an incredible technology, it is growing steadily and becoming a major platform for businesses to connect with the world through voice calls. Therefore, you can say that VoIP uses standard internet as a medium to place calls free of cost.

Advantages of VoIP

Some of the major benefits of VoIP include:

  • Cheaper Cost

Most of the users and business holders actively use VoIP to connect with their clients and consumers while cutting down on their phone bills by as much as 60%. So, they can save a considerable amount of money while enjoying the high-quality sound.

  • Clear Voice Quality

The audio is clear. No matter what corner of the world you are located in, you will not experience any fuzzy audio as long as you have robust internet connectivity. While using VoIP, you can enjoy high-quality sound that is an essential attribute to ensure seamless interactions with your consumers.

  • Unlimited Calling Worldwide

Usually, international calls cost money since the rates are high and you cannot afford prolonged worldwide calls. In the case of VoIP, the rates for international calls can be as low as $0.04 per minute for making a call to Mexico.

  • Advanced Calling Features

VoIP provides you additional premium features like call recording and auto attendants, as part of the service.

Equipment Involved in VoIP

Two main types of VoIP telephones are commonly used and include hardware-based phones and software-based.

  • Hardware-Based VoIP

A hardware-based VoIP phone is similar to a traditional phone and has almost the same features like a microphone, touchpad, caller ID display, call conferencing, or call transfer.

  • Software-Based VoIP

Software-based VoIP is also referred to as softphones. They are installed on the computer as software clients. Its interface looks like a telephone handset and you attach a headset along with a microphone to your laptop or mobile to make calls. Users can make calls through their laptop or mobile if it has a built-in microphone and a speaker.

Is VoIP Reliable?

In the beginning, when VoIP was introduced, the call quality was not as smooth and reliable as it is today. With the increase in internet bandwidth, the call quality of VoIP has improved drastically. Nowadays, VoIP calls are more crisp and clear than ever before, and a lot better than landline phones. However, the call quality and reliability of VoIP greatly depend on the internet service provider you choose. The better your internet quality and the higher your bandwidth, the more reliable and crystal-clear the VoIP calls you will experience.

Cost of VoIP

VoIP is very inexpensive especially considering its features and functionalities. Generally, a user can expect approximately thirty to forty dollars per month for VoIP services. If compared to a traditional phone system, the cost savings are impressively high.

The Bottom Line

VoIP can help you save money while letting you enjoy high-quality voice communication services. As evident by the aforementioned discussion, you can enjoy longer international calls even free and you only have to pay for your internet access. You also do not have to invest in telephonic equipment and cable lines

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