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Understanding VoIP and how does it work?


For those seeking clarity on the subject, we often encounter questions from beginners like: what exactly is VoIP and how does it operate? If you're someone who's not particularly tech-savvy, you might have heard about using VoIP to incorporate a business phone number into your website.


VoIP presents a more economical avenue for obtaining a business phone number for your website, especially when contrasted with traditional phone lines. However, before you make any decisions, it's crucial to grasp the essence of this technology.


In this introductory guide, we intend to shed light on what VoIP entails and delve into its operational intricacies. Our objective is to equip you with an understanding of how VoIP can not only save you money but also foster the growth of your business.


Unveiling VoIP: How It Works Behind the Scenes


VoIP, which stands for Voice Over Internet Protocol, constitutes a phone technology enabling phone calls through the internet, bypassing traditional telephone lines. Unlike conventional landline systems confined to a single desk phone within your office, VoIP empowers you to make and receive business calls using various devices, including laptops, tablets, standard smartphones (via an app), and even VoIP-compatible office phones.


This digital transition to the internet realm renders both domestic and international calls incredibly cost-effective. Many business VoIP providers offer unlimited minutes sans additional charges. Additionally, VoIP encompasses advanced phone features such as call waiting, routing, caller tones, auto-attendant services, multiple phone numbers, and more.


This transformation accounts for why businesses, from small enterprises to larger corporations, are making the shift from traditional phone services to business-oriented VoIP solutions.


Decoding VoIP's Mechanism (Behind the Scenes)


Peering into the inner workings of VoIP, let's explore the journey of a phone call placed or received via a VoIP-enabled device.


The Inner Mechanism of VoIP


When initiating a phone call through VoIP, the associated business phone app or VoIP adapter converts analog audio signals into digital data.


This digitised voice data traverses the internet to reach the business phone service provider and is subsequently directed to the intended recipient's phone.


This rapid process often yields sound quality that surpasses that of conventional phone calls.



VoIP vs. Traditional Phone Systems: Under the Hood


VoIP diverges significantly from traditional landline systems in terms of operational mechanics.


Traditional telephone systems employ circuit switching to establish connections. When dialing via the Public Switched Telephone Network (PSTN), both ends are linked in a circuit.


Circuit switching, a century-old technology, remains reliable but is neither the most efficient nor cost-effective.


VoIP adopts packet switching, sending data only when necessary. Brief, instantaneous connections are established during conversations, and constant two-way communication is unnecessary. Simultaneous speaking is rare.


Data packets travel through multiple internet paths, with compression optimising speed. At the destination, packets are reassembled. This efficient process minimizes delays.


Despite the technical aspect, it's vital to grasp that VoIP excels at transferring data during calls. You've probably used VoIP unconsciously through apps like Skype or Google Voice.


Analyzing VoIP's Pros and Cons


Given Simplyfree’s extensive experience with VoIP business phone services, we've gained insights into its merits and demerits.


A Comprehensive Examination of VoIP's Attributes


Cost Savings: Embracing a cloud-based VoIP phone system translates to lower monthly expenses for domestic and international calls. Unlimited domestic calls are often included, and international rates are competitive. Moreover, you'll reduce expenses associated with repair and maintenance services typically incurred with landline providers.


Portability: VoIP liberates you from physical confines. You can answer calls from anywhere using an app on your phone, tablet, or laptop. This proves beneficial for remote teams and travelers alike.


Advanced Features: VoIP offers an array of supplementary business phone features. From effortless conference calls to virtual receptionists, voicemail-to-email transcription, and more, VoIP enhances your operational efficiency.


Scalability and Flexibility: VoIP facilitates seamless expansion. Whether recruiting new team members or opening branches, accommodating growth is hassle-free. Adding members involves minimal effort through your account dashboard. VoIP's compatibility with smartphones negates the need for additional equipment.


Dissecting VoIP's Drawbacks


Internet Dependency: VoIP necessitates a robust internet connection for calls. Slow internet could compromise call quality. However, VoIP's bandwidth consumption is generally lower than assumed. A decent connection with suitable speed is sufficient for VoIP.


Power Outages: Unlike traditional services, VoIP requires power and internet access. If your building experiences a power outage, your VoIP service might be affected, although solutions such as battery backups can mitigate this.


Staff Training: Switching phone systems mandates training. While most VoIP services are user-friendly, some instruction might be required. Fortunately, VoIP interfaces are often intuitive, simplifying the training process even for remote staff.


In Conclusion


Our objective has been to illuminate the concept of VoIP and its operational mechanics, catering to beginners seeking clarity. If you decide to switch to VoIP, reach out to Simplyfree.


As one of New Zealand’s leading and most mature VOIP Network providers, we are confident that our phone systems and solutions will improve your business.


Our range of smart business phone solutions can be customized to provide every modern phone feature and set-up. Through our consultative sales process, we ensure that any solution will include a range of features and functionality to make your business communications professional, reliable, and affordable.


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