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What is VoIP (Voice over Internet Protocol)?

Most likely your business has heard about VoIP and its benefits. Still, you might not know if the platform is ideal for your company. VoIP, or Voice over Internet Protocol, is a new technology that allows for voice communication via the internet rather than through a traditional analog channel. The important thing that businesses must keep in mind is that there are different types of VoIP services. It's important to understand each in order to determine which is best for your business.


Some Types of VoIP Service

"Some VoIP services need only a regular phone connection while others allow you to make telephone calls using an Internet connection instead." (1) Other VoIP services allow businesses to only call others that use the same service. On the other hand, some services let businesses call any number whether it's long-distance or local. VoIP services can be used to call wireless and even international numbers. Depending on your business's needs, you can select a service that suits you best.


How Does VoIP Work?

VoIP works by converting voice signals via your phone into a digital signal that travels, of course, over the internet. What if you are calling someone that uses a traditional phone system? In this case, the system converts the signal from digital once it reaches the end caller. This is the basic method, but depending on your system, there may be some differentials.


Do I Need to Invest in Equipment?

Because "VoIP technology lets you run a phone system on an IP network," (2) you certainly need an internet connection and possibly a broadband connection. Some VoIP services require that you have a computer as well as a VoIP phone and regular phone outfitted with an adapter. This equipment is not a substantial investment and many businesses find that the equipment requirements are negligible in terms of cost.


The Benefits of Using VoIP Technology

VoIP allows businesses to take advantage of features that traditional phone systems simply cannot offer. This technology can streamline business communications, reduce communication costs, and even allow employees to conveniently access the network from remote locations--like the couch in their living room! For rich media service and phone portability, VoIP is increasingly popular among today's businesses.


How Do I Use VoIP?

Once you've installed VoIP, you can use your phone just as you would your traditional telephone. If your VoIP phone is computer based, you'll see an icon on your screen and can use your keypad for dialing. You will also receive notifications for incoming phone calls. Otherwise, your VoIP acts just like the phones you've been used to.
If you are considering switching to a VoIP system, speak with a consultant in depth so you can choose a system that answers your company's needs. You'll also want to compare costs to other available phone systems. You'll likely be pleasantly surprised at the cost-savings that is associated with VoIP. You should also speak with businesses that use VoIP to find out their reaction to this system before adopting a service yourself.


Sources

1. FCC, "Voice over Internet Protocol (VoIP)," http://www.fcc.gov/guides/voice-over-internet-protocol-voip
2. IdeaCom, "Voice over IP Phone Systems," http://askideacom.com/products-services/digital-voip-systems/