VoIP: How Does It Work? A Beginner’s Guide to VoIP

What is VoIP? How Does It Work?

A VoIP phone service provider provides a means for phone calls across the internet. A VoIP phone service provider uses Voice over IP, or VoIP, to convert your voice into a digital signal, compress it, and send it over the internet to your recipient. A VoIP service provider sets up the call between all participants. On the receiving end, the digital data is then decompressed into the sound that you hear through your handset or speakerphone.

VoIP is a great way to have a phone call over the internet without having to pay a lot of money. With a VoIP service you can have a conversation over the internet with someone who lives in a different country, without having to use the phone network. And you can create a phone call from your computer, or from your phone, using a VoIP service.

In VoIP, the most common protocol is the Session Initiation Protocol (SIP). A SIP server is a server with the capability to accept SIP requests, which are typically initiated by the client with a SIP message.

It’s one of the most secure ways of communicating, because you can hide your IP address. The IP address is essential for VoIP because SIP servers are protected with IP addresses.

If you’re like the majority of us, you probably don’t know what VoIP is. (Believe it or not, it’s not a funny joke about the internet!) VoIP is short for Voice Over IP, and it refers to the technology used to make voice calls over the internet. VoIP started in the 1980s with the invention of the internet. A company called Cisco was already making routers that could be used to connect people to the internet, so they added the ability to provide voice calls along with the internet. It was a revolutionary new way to communicate, but it wasn’t until the mid-1990s that it really went mainstream.

Top VoIP Phone Features

Aside from the cost savings, VoIP also offers an array of features that companies find appealing.

Here are the top features offered in a VoIP phone system:

  • Voicemail to Email with Transcription – Voicemail to Email with Transcription: Have your voicemails delivered right to your email complete with caller ID, wave attachment and transcribed in the body of your email.
  • Automated Attendants – Automatic call routing for multiple companies with professional greetings. Never miss a call and route calls to the correct employees.
  • Call Recording – Record calls for quality assurance and employee training. Listen in feature with “”join”” call capabilities will allow coaching and easy instructional assistance to your staff.
  • Web Portal with Chat – Within our web portal see employee presence and call history. Chat with other staff members and make changes to your system quickly and online.
  • Conference Bridges – Enjoy unlimited conference bridges with your MyVoIP service. Password protect multi-party conference calls with direct dial-in capabilities.
  • Web Softphone – Make and receive calls right from our web portal. No hardware required and perfect for remote or traveling employees.

Can I Use My Existing Phone With VoIP?

There are many people who would like to be in touch with their families with their smartphones, but they still want to use their existing analog phones when they call. That’s when you need an analog phone adapter.
If you want, you can also use your existing analog phone with VoIP by using an Analog Telephone Adapter (ATA). It can retrofit existing phones with more features and capabilities. In many cases, it may be more desirable to use a SIP phone, since it is better designed for being used with VoIP teleservices.”
The last thing you should know about VoIP is that many people don’t know that you can use a SIP-compatible.

How Much Does a VoIP Phone System Cost?

VoIP phone systems are an alternative to traditional telecommunications. Businesses today are moving to VoIP phone systems to save money on long distance usage, but there are also many other benefits. These include being able to have your own business phone number, reduced monthly phone bills through lower long distance usage, and cheaper equipment costs because you are not paying for installation and maintenance costs.

An average VoIP phone system costs between $20 and $40 per line per month. You might be able to reduce your costs depending on your number of users, commitment, and features. A decent IP phone starts at $70, but they can also be leased for as low as a few dollars each month.


The cost of a VoIP phone system is based on the following:
• Cost of the phone system
• Cost of the equipment
• Cost of the service
• Any up-front costs that may occur with the setup
• Any reimbursements that may be available in the future
• The amount of lines in the system

VoIP Phone System Requirements

Network Bandwidth

It is important to have a reliable Internet Service Provider (ISP) connection such as DSL, cable, or fiber. VoIP devices typically require 100 Kbps or greater bandwidth. You may require more bandwidth than the standard depending on the type of data and features you will use.

Phones & Devices

Another major factor is ensuring that you have the right devices in place.
To make VoIP calls, you’ll need a SIP phone, softphone, or Analog Telephone Adapter. Below is a brief explanation of each:

  • SIP Phones – VoIP (Voice over Internet Protocol) phones, also known as SIP phones, use your IP (Internet Protocol) network to integrate basic phone functionality with web, email, online chat, and more.
  • Softphones – A VoIP app is all you need if you don’t have a traditional phone and just want to make calls using your laptop, phone, or desktop. As a result, Caller ID is kept separate from the voice data since your VoIP provider handles the voice data directly.
  • Analog Telephone Adapters – For those of you still using analog phones, no worries. A VoIP ATA allows you to retrofit your existing phones to work properly over VoIP. Although they may not offer all conferencing capabilities, they assure a reliable service.

Selecting the Right VoIP Phone System

Finally, you must find a VoIP provider who can handle your needs. Choosing a reputable provider ensures a smooth setup and an enjoyable experience.
The following factors should be taken into account when selecting the best VoIP phone system:

  • Maintaining reliability and availability
  • Customer reviews and case studies
  • Product and service usability
  • Testimonials and case studies of customers
  • Customer service accessibility and quality
  • Continuity of the company and its reputation
  • Initial and monthly costs

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