A Guide to Voice over Internet Protocol (VoIP)

Nov 4 2011 Advertisement Feature

VoIP is a new form of business communications technology that is gaining popularity. Understanding this service is an essential requirement for anyone considering its implementation in their business, but what is VoIP and how does it work in the business world?

VoIP systems are an increasingly popular choice for businesses, offering them an alternative way to transmit telephone calls. Here is a quick guide of everything you need to know about business VoIP systems:

What is VoIP?

VoIP stands for Voice over Internet Protocol. VoIP is a system by which verbal calls are transmitted across a computer Internet Protocol (IP) connection instead of over a telephone line. This means that all of the correspondence and data transmitted between a business and a client is done so across one connection.

What is Hosted VoIP?

Hosted VoIP systems are designed to address some of the problems encountered from combining VoIP with PBX (Private Branch Exchange) systems. These systems can incur larger expenses due to the need to install specialist equipment in each branch or office of a business. Hosted VoIP systems use a separate hosting platform in order to eliminate this, transferring the savings onto the customers. This offers a more reliable and easily accessible service, making it easier for business to conduct their daily tasks and correspondences.

What Do You Need for a VoIP System?

VoIP systems will require one Public Switched Telephone Network (PSTN) to be installed. This is a singular phone line which is used to give the office its broadband connection which is then used to enable the VoIP system to work. 

Other than that, businesses will just need to have relevant phone handsets installed – something which they are likely to have anyway. Providers of these services will be able to advise businesses on what features and equipment they need in order to make a VoIP system work but these will usually be items already held by most businesses.

What Are The Benefits of VoIP Systems?

VoIP systems have a number of great benefits the main one of which is reduced costs. As they only require one PSTN line businesses will not have to pay for multiple line rentals. This means that they can still deal with a large volume of calls but without encountering large costs. 

VoIP systems also help to reduce costs by offering businesses a number of competitive rates on calls and other services. A VoIP provider will often offer incentives in order to give businesses fair and competitive prices for their communication systems. This means that businesses could benefit from free calls between their offices and cheap international calls, or other such offers. 

VoIP systems are also incredibly flexible. The amount of handsets in an office can be increased quickly and easily, allowing the VoIP system to grow and expand with the business. This means that the system is scalable and therefore more efficient and cost effective.