How Does VOIP Work?

Introduction

Voice over Internet Protocol (VoIP) is changing how we communicate by letting us make phone calls over the internet instead of using regular phone lines. But what exactly is VoIP, and why is it getting so popular? In this blog, we’ll explain how VoIP works, what benefits it offers, and why many people and businesses are making the switch. Whether you’re hearing about it for the first time or just want to learn more about its perks, we’ll keep everything easy to understand.

Let’s jump in and explore together!

What Is VOIP?

VoIP stands for Voice over Internet Protocol, which is a technology that allows you to make phone calls over the internet rather than using traditional phone lines. Instead of relying on a landline or cellular network, VoIP converts your voice into digital signals that are transmitted over the internet. This method makes communication faster, more flexible, and often more affordable. VoIP can be used on various devices, including smartphones, computers, and VoIP-specific phones, making it an ideal solution for both personal and business communication needs.

How Does VOIP Work?

To put it in simple words, communication over the internet is achieved through a change in the format of the message (voice, audio, etc). For data to be transmitted over the internet, it needs to change its form. A voice call placed through the VoIP phone is broken down and converted into small packets. Each of these separate broken-down packets contains information that when assembled at the receiver destination again forms back into the original audio.

Packet switching is a technique that involves sending packets of data according to the most efficient route available at the time. VoIP uses packet switching. As opposed to traditional phone lines that use circuit switching, which involves establishing a line and keeping it reserved for that purpose, packet switching is done across various networks and does not need a pre-established route. It allows the following advantages – 

• Increased efficiency as the circuits are not reserved. They are used as and when they are needed. This also means that the network bandwidth is not wasted.
•  Decreased cost, as there is no need to set up a physical network. 
• Increased speed, as the best route for transmission, is determined and used to send the packets. 

VoIP Phones can be both hardware-based and software-based. What looks like a normal desktop phone, configured to send and receive calls over the internet is the hardware-based VoIP phone. Other devices such as mobile phones, computers, tablets, etc can also place calls over the internet if they have software that enables the same. These are software-based VoIP phones. So employees can make and attend calls from anywhere, even using their personal phones or computers. One can be sitting in their office or in a theatre and still attend calls. 

This is how it works: 

Step 1 – Your phone connects to your switch or router in your Local Area Network (LAN).

Step 2 -When you dial a telephone number, your IP phone tells your VoIP service provider to call the other party.

Step 3- Your VoIP service establishes the call and exchanges data packets from your IP phone.

Step 4 – Your VoIP phone converts these digital signals back into the sound you can hear.

Why Should You Use VOIP?

Now that we’ve gained some understanding of what VoIP is and how it works, we can try and understand how it can be useful for businesses. 

There are many reasons why businesses should consider investing in VoIP Phone systems. Some of them are – 

Allows Multiple Calls At A Time 

One of the very important features of a VoIP system is that it makes communication a lot easier. It allows you to make multiple calls at the same time like conference and group calls. It also makes inter-department communication easier which in turn makes it easier for the customers to be connected to the desired department.

Affordability

Whether your VoIP system is hardware-based or software-based, a major advantage of it over the traditional phones is its affordability. Since in both cases calls are made over the internet, you need not bear the cost of the call rates of telephone service providers. You would be able to place calls at significantly lower rates or even free. Installation of the hardware or software-based VoIP system is also hassle-free and doesn’t cost a fortune. If you choose a cloud-based VoIP system there is no need to install any extra equipment or appoint employees to install and maintain it. Even hardware-based VoIP systems need only the VoIP phones that are then connected to the router with an ethernet cable.

Scalability

With VoIP, as your business grows it’s easy for you to add new lines for your employees. You can also eliminate existing lines as you downsize without having to bear any additional costs. Traditional phones would have required new lines with new cabling, with VoIP one can set up additional lines with a few clicks on their online dashboard.

Mobility

VoIP provides one with ease to attend calls from anywhere they like. You don’t have to be chained to a desk to make and receive calls. With a VoIP system installed on your phone, tablet, or laptop you can take your work anywhere. It also makes it easy for businesses to allow for remote work for their employees. ( As we have seen the shift to remote work during the pandemic). It is surely the future of work.

Easy Integration

VoIP can integrate with other business tools, such as CRM systems, email, or customer support software. This allows for smoother workflows and enhances the overall customer service experience.

Improved Call Quality

With the right internet connection, VoIP offers high-definition voice clarity, making communication crystal clear. Gone are the days of poor-quality landline calls that are hard to hear.

Reporting and Metrics 

Using Landline telephones for business communications limits you from understanding the call metrics. With VoIP, one can easily track important metrics such as total call time, average handle time, hold time, etc. 

These will help you to understand how you can handle calls better. Customer experience can be significantly improved once you are able to measure your performance. 

VOIP Vs Landline Phones

When deciding between VoIP and traditional landlines, it’s essential to understand how they differ in terms of cost, functionality, flexibility, and reliability. VoIP is a modern communication method that leverages the internet, while landlines rely on older, physical infrastructure. Below, we break down the key differences between the two in a simple table to help you choose the right option for your needs.

VoIP stands out for its flexibility, cost-effectiveness, and modern features, making it a top choice for businesses and individuals looking for a versatile communication tool. However, if you prioritize simplicity and reliability, especially in areas with unreliable internet, a traditional landline might still be the better option.

Types of VOIP Systems

When it comes to VOIP, there are a few different types of systems to consider, and each one serves a different purpose. Let’s break them down so you can see what might work best for you:

Residential VOIP

This type is great for home users who want to make calls without the hassle of traditional phone lines. With residential VOIP, you can enjoy features like unlimited local and long-distance calling, voicemail, and call waiting—all without breaking the bank. Setting it up is usually as simple as plugging in a device or downloading an app, which makes it super convenient!

Business VOIP Solutions

If you’re running a business, this option is for you. Business VOIP systems come with a bunch of advanced features tailored for professional use, like conference calling, automated attendants, and call routing. They also integrate with other business tools to help streamline communication. Plus, many businesses are switching to VOIP for the cost savings and flexibility it offers, making it easier to stay in touch with customers and teams.

Mobile VOIP

This is perfect for those who are always on the go! Mobile VOIP apps let you make calls using your smartphone or tablet over Wi-Fi or mobile data, which means you can avoid high cellular charges. Apps like WhatsApp, Skype, and Viber are popular choices, allowing you to connect with friends and family no matter where you are.

Hosted VOIP

With hosted VOIP, a third-party provider manages everything for you. This is a fantastic option for businesses that want a hassle-free solution without dealing with the hardware or software. The provider takes care of updates and technical support, so you can focus on running your business instead of worrying about your phone system.

On-Premises VOIP

If you prefer to have everything in-house, an on-premises VOIP system might be the way to go. This type is installed and managed on your own premises, giving you more control over your setup. It’s a good fit for businesses with specific security needs or those who want to customize their system, but it does require more maintenance and upfront investment.

Hybrid VOIP

A hybrid VOIP system combines both on-premises and hosted solutions, allowing you to keep some of your existing hardware while enjoying the benefits of cloud-based VOIP services. This can be a smart choice for companies that want to transition to VOIP gradually, blending the best of both worlds.

Each type of VOIP system has its unique perks, so it’s all about finding the one that fits your needs—whether you’re looking to keep in touch with loved ones or improve communication for your business.

Best VOIP Features To Look For

When selecting a VoIP phone system for your business, it’s essential to choose a solution that meets your specific needs and enhances communication efficiency. Here are some key features to look for in a business VoIP phone:

Automated Assistant

This assistant will help route incoming calls to the respective departments. Interactive Voice Response or IVR, allows for the execution of this feature. IVR comes with features like customizable greetings or the ability to route to multiple numbers.

Call Forwarding

This feature allows for unanswered calls to be automatically transferred to an available extension or phone number. It ensures that no customer call is left unanswered. 

Call Hold and Transfer

This feature will allow you to place a caller on hold or transfer to a different department or extension as needed. 

Call Recording 

So call recording is a VoIP module that allows workers to record calls for training and reference purposes. 

Call Pop 

Call pop is a feature that shows information about the incoming caller on the agents’ screen. Basic information such as name and phone number will be included along with other useful information. 

Voicemail

The voicemail feature allows callers to leave a voice message when their call goes unanswered. With Emitrr, these voice messages can also be transcripted and turned into text messages.

Call Routing

Call routing directs calls to a specific department according to the caller’s need. This is usually done by using the inputs dialed in by the user at the IVR to help map to the required department. Call routing reduces call hold time and thus improves customer satisfaction scores. There are different methods to call routing. These are: Round Robin, Regular, Simultaneous, and Weighted.

Call Notify

Call notify is setting up agent alerts for whenever a call is received. These alerts can be in the form of email or text messages. They help ensure that no call is missed and the agent is aware of the incoming call.

Call Queue

This is a very important feature for organizations that receive a lot of inbound calls. Call queue puts the callers into a queue based on when they called. These callers in the queue are usually welcomed with pre-recorded messages or on-hold music. Call queueing allows for proper distribution of calls

IVR

This stands for Interactive Voice Response. IVR allows callers to interact with an organization’s voice menu. By choosing options that are most suitable to the caller,  they will be able to resolve their queries quicker.

Best Practices For VOIP Calls

When you start using VOIP, there are some simple best practices you can follow to ensure your calls go smoothly. Here are my top tips to help you get the best out of your VOIP experience:

Check Your Internet Connection

Since VOIP relies on the internet, a stable connection is key. Make sure your Wi-Fi signal is strong, or consider using a wired connection for even better reliability. If you’re having issues, try to limit the number of devices connected to your network while you’re on a call. This can help prevent any hiccups in the connection.

Use Quality Headphones or a Headset

Good audio quality makes a world of difference! Using headphones or a headset can help reduce background noise and echo, making it easier for both you and the person on the other end to hear each other clearly. Plus, it’s more comfortable for longer conversations.

Choose the Right Environment

Try to find a quiet space for your calls. Background noise can be distracting, both for you and the person you’re talking to. If you can, close doors or windows and let others know you’re on a call so they don’t interrupt.

Test Your Setup Before Important Calls

Before a big meeting or important conversation, it’s a good idea to test your VOIP setup. Make a quick call to a friend or use a test call feature to check your audio quality and connection. This can help you catch any issues before they become a problem during your call.

Keep Your Software Updated

Make sure your VOIP app and any related software are always up to date. Updates often come with important fixes and improvements that can enhance your calling experience. Check for updates regularly to keep everything running smoothly.

How To Choose The Right VOIP System Provider?

Choosing the right VoIP provider for your business is essential for optimizing communication and improving operational efficiency. With various providers available, here are unique factors to consider to ensure you select the best fit for your needs:

Evaluate Your Current Infrastructure

• Assess Existing Technology: Consider the technology and hardware you currently use. Ensure that the VoIP provider is compatible with your existing equipment, such as routers and phones, to minimize additional costs and disruptions during the transition.
• Internet Bandwidth: Review your current internet bandwidth to determine if it can support VoIP services. A stable and fast internet connection is crucial for maintaining call quality.

Understand Your Business Model

• Nature of Business: Different businesses have different communication needs. For instance, a customer service-driven business may require advanced call routing features, while a startup might prioritize cost-effectiveness. Understanding your business model helps you select a provider that aligns with your objectives.
• Work Environment: Consider whether your employees work on-site, remotely, or in hybrid environments. Some VoIP providers specialize in solutions tailored for remote teams, which could enhance flexibility and connectivity.

Research Provider Reputation and Experience

• Industry Experience: Look for providers with a solid track record and experience in your industry. A provider familiar with your specific needs can offer tailored solutions and support.
• Case Studies and Testimonials: Review case studies or testimonials from businesses similar to yours to understand how the provider has met their needs. This can give you insights into their service quality and reliability.

Examine the Onboarding Process

• Ease of Setup: Investigate how straightforward the onboarding process is for new customers. A provider that offers dedicated support during setup can significantly reduce the transition period and help avoid potential pitfalls.
• Training Resources: Look for providers that offer comprehensive training resources or workshops for your team. Well-trained employees can maximize the use of the VoIP system and improve overall productivity.

Inquire About Service Level Agreements (SLAs)

• Performance Metrics: Review the provider’s SLAs to understand their performance commitments regarding uptime, call quality, and support response times. This ensures you know what to expect and helps hold the provider accountable.
• Remedies for Service Issues: Understand the remedies provided by the provider in case they fail to meet SLA commitments. This can be important for protecting your business from potential service disruptions.

Consider Future-Proofing

• Emerging Technologies: Choose a provider that actively invests in developing and integrating new technologies. This commitment to innovation can ensure your VoIP system remains up-to-date and capable of meeting future business demands.
• Adaptability to Trends: Assess the provider’s ability to adapt to market trends, such as increased demand for call conferencing or remote collaboration tools. A flexible provider can help you stay competitive as communication needs evolve.

Gather Feedback from Team Members

• Involve Your Team: Solicit input from team members who will be using the VoIP system daily. Their perspectives can help identify specific features or capabilities that are essential for their workflows.
• Pilot Testing: Consider conducting a pilot test with a few team members to evaluate the provider’s system in action. This hands-on experience can reveal potential issues or advantages that may not be apparent from a standard demo.

Check for Free Trials or Demos

• Utilize Trials: Many VoIP providers offer free trials or demos, allowing you to explore their services before committing. Take advantage of this opportunity to assess the usability and functionality of the system in a real-world context.
• Evaluate Performance: During the trial, pay attention to call quality, ease of use, and available features. This firsthand experience will be invaluable in determining whether the provider meets your business needs.

By considering these unique factors, you can make a more informed decision when selecting a VoIP provider that aligns with your business needs and supports your goals for effective communication and growth.

The Future of VOIP

As I look ahead to the future of VOIP, I’m excited about some key trends that are shaping the way we communicate. Here’s what I see coming:

Integration with Other Technologies

We’re going to see VOIP systems working seamlessly with other communication tools, like video conferencing and messaging platforms. This means I can easily switch from a voice call to a video meeting without missing a beat. Imagine having everything connected—like using Slack or Microsoft Teams—where I can chat, call, and collaborate all in one place. It’s going to make communication so much smoother!

Improved Call Quality

Thanks to advancements in internet technology, especially with high-speed broadband and 5G, I expect VOIP calls to be clearer and more reliable. We’ll have less lag, fewer dropped calls, and overall better audio quality. Whether I’m catching up with a friend or in a business meeting, I can look forward to a more enjoyable and frustration-free experience.

AI and Automation

Artificial intelligence is going to change the game for VOIP. I see features like smart call routing becoming standard, where calls are directed to the right person automatically. Plus, virtual assistants might take on tasks like managing calls, taking notes, and scheduling follow-ups. Just picture having an assistant that summarizes calls or sends reminders based on our conversations—that would be a huge time saver!

Mobile Enhancements

Since we’re all on our smartphones and tablets more than ever, I think VOIP providers will focus on making mobile apps even better. I can’t wait for user-friendly interfaces that let me make calls, send messages, and join video conferences easily from my device. Staying connected on the go will become a breeze!

Stronger Security

With growing concerns around data privacy, I believe security will be a top priority for VOIP systems. We can expect stronger encryption, multi-factor authentication, and regular updates to keep our conversations safe. As we become more aware of privacy issues, I think there will be a greater demand for secure communication channels, and VOIP will step up to meet that need.

Conclusion

VOIP is reshaping communication by providing the flexibility and efficiency that traditional phone systems can’t match. With improvements in call quality, security, and innovative features like AI integration, now is the perfect time to make the switch. For those looking to enhance their communication experience, signing up for a demo with Emitrr is a great next step. 

Embrace this technology today and enjoy a future where staying connected is easier and more convenient than ever!