What is VoIP & How does it Work? (Advantages, Disadvantages & Cost)

  • What is VoIP & how does VoIP work?
  • Essential components for VoIP calling
  • Types of VoIP phone systems
  • VoIP phone numbers
  • Advantages of VoIP
  • What you should know before opting for VoIP
  • How do businesses use VoIP?
  • How much does VoIP cost?
  • Our recommendations

What is VoIP?

How does VoIP work?

  1. The voice signal is first converted to small digital packets.
  2. These packets are then transmitted over the internet or the LAN, eliminating the need for physical wires.
  3. At the receiving end, these packets are converted back to voice signals by a VoIP-enabled device (VoIP softphone).

Essential components for VoIP calling

  • VoIP phone: Specialized phones made for VoIP communication.
  • Softphone: A softphone is a piece of software installed on a computer/smartphone that allows the device to make and receive VoIP calls. The software installed is called a SIP client and it can be installed on any computer/smartphone. Zoiper, Linphone, etc are some of the most commonly used softphones.
  • Analogue phone with a VoIP adapter: VoIP adapters can be used to enable VoIP communication over analogue phones. This is used when a business already has PBX infrastructure.

Types of VoIP Phone Systems

  • They have a VoIP server that acts as the central point for all communication, and VoIP enabled endpoints are required to make/receive calls.
  • These phone systems have numerous advantages over on-prem PBX phone systems — lower costs, capability to transmit and receive other forms of multimedia in addition to voice, etc.
  • On-prem VoIP phone systems are infrastructure-dependent, expensive and bulky.
  • A VoIP provider takes care of everything on the cloud, and all businesses need are VoIP enabled devices that can make and receive calls.
  • These are easy to set up and require no maintenance.
  • With VoIP phone systems, businesses can pay for what they use and scale on the go.

Do you need a VoIP phone number?

What are the advantages of using a VoIP phone system?

What you should know before opting for VoIP

How Exotel overcomes the disadvantages of VoIP

How do businesses use VoIP?

How much does a VoIP phone system cost?

Future-proof your business communication with VoIP

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Exotel — Asia’s leading cloud telephony company

Exotel — Asia’s leading cloud telephony company

We make customer communication simple & efficient for enterprises in India & SEA. Follow us for stories on building a profitable startup http://exotel.com