There’s currently a good deal of buzz surrounding VoIP in the business world. It can offer greater flexibility and reduced costs to companies of all sizes. But what exactly is VoIP? How does it work and what do you need to know before taking the plunge?

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VoIP Technology

The VoIP market is growing fast. Although the technology behind it has been around for more than a decade, it needed the infrastructure of reliable fibre internet connections in place in order for it to enter into the mainstream.

Essentially what VoIP (Voice over Internet Protocol – in case you were wondering) does is to take sounds and convert them into data packets that can be sent over the internet just like any other data. This means that rather than needing an open connection between two phones during a call, the signal can be constantly rerouted to find the most efficient route.

In its early days VoIP was a computer-to-computer service. You sat in front of your PC wearing a headset in order to make calls. Now it’s possible to get IP phones that look and work just like a conventional PSTN phone but which access the IP network directly. You can also get analogue telephone adaptors (ATAs) to allow you to connect older phones. Most modern systems now allow you to use an app on smartphones and other mobile devices to make VoIP calls too, so you can use your business phone system from anywhere you have an internet connection.

Thanks to the expansion of fibre networks, call quality on VoIP is now comparable with or better than traditional PSTN systems.

VoIP Benefits

One of the biggest advantages of VoIP is in reducing costs. Not only are call costs lower with an international VoIP wholesale provider such as, but you will also save on infrastructure because there’s no need to have a PABX on site, so there are reduced infrastructure and running costs.

As your business expands, VoIP means there’s no need to install extra lines to cope with additional call volume. It’s easy to scale the system either permanently or to cope with seasonal spikes in demand. The ability to access the system from different locations also delivers improved agility and ensures that your staff can be more productive, as they are always able to take important calls.