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How does VoIP Work?

Posted on April 30, 2021April 30, 2021 by Adam Barnes

The newest innovation to help businesses is VoIP or Voice over Internet Protocol. VoIP works by converting voice communication into data packets that can be sent across the Internet. This enables organizations to make international calls from any location at an affordable cost. In this article I will show how SIP trunks can provide your company with increased productivity and efficiency.

Many companies use VoIP each day, but few have tapped into the powerful features of hosted VoIP service. VoIP offers many advantages over traditional phone systems. Calls are no longer dependent upon older copper lines. Many business owners report incredible cost savings up to seventy percent just by switching to hosted voip phone service.

SIP trunks are small offices that host the server software required to communicate with a VoIP provider. These servers are connected together through networks and hubs and are called “branches.” The number of branches and the distances between them depends on the distance that the calls have to travel to reach the VoIP provider. The number of branches and their distances are what affect the quality of the call.

One branch that connects VoIP calls is the local area network.

It makes very good sense to connect this network to the phone system. Since most employees will work from home, it makes good business sense to connect the local area network to their computers. And with SIP trunks, it is very easy to configure the connection to SIP servers located around the world.

Another branch of SIP technology is called hosted PBX. A hosted PBX phone system offers the ability to put together the features of a traditional PBX phone system without the cost of buying and installing individual components. Instead, hosted PBX services include basic features like auto attendants, call forwarding and recording, call waiting, call transferring, music on hold, and so on. They also contain features specific to small businesses, home offices, and other offices in specific locations. However, in many cases, hosted pbx phone systems include features that are very similar to those offered in a traditional office phone system.

Then there is Voice over Internet Protocol or VoIP phone service.

This service uses voice lines that are transmitted across the Internet between users and providers. One major advantage is that the voice service does not involve any hardware installation and the connection is generally free. The disadvantage of VoIP is that each user needs his own dedicated IP address for voice transmissions. Apart from that, VoIP requires considerable data transmission, which can make it expensive.

With VoIP, there is no need for any hardware or software upgrades. All the changes that may be required are done via the Internet. Since voice calls are routed through IP networks, they are usually free. There are some providers who charge a low monthly fee in order to enable a wide area network of their clients. These providers do not restrict the number of calls that can be made by a user. In other words, a consumer can place as many calls as he wants to but he is charged the same fee whether he makes five calls or 500 calls.

  • The two different types of VoIP phone systems that are commonly used are the off-line system and the online system.
  • An off-line system is just that – the service provider does not have an office and does not maintain a large fleet of telemarketers. Instead, all the work is done by the consumer himself.
  • Online voice services require no set up and are simple to use from the comfort of one’s home.
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