What is VoIP and how it Works

What is VoIP and how it Works

Last Updated on March 24, 2024 by Darron Dennis

The question ‘ What is VOIP and how it works ‘ is one that has been asked over and over and finally, we’ve got the answer for you.

VOIP, also known as voice over Internet Protocol enables traditional telephony services to operate over computer networks. This is one of latest technological rapidly growing voice communication solution around the world. With the help of VOIP, today you can make phone calls anytime, anywhere using an Internet-connected computer.

What is VOIP

what is voip and how it works

VoIP is the technology that converts your voice into a digital signal, allowing you to make a call directly from a computer, a VoIP phone, or other data-driven devices. It can also be referred to as a phone service delivered over the internet. VoIP phones do not use traditional twisted pair copper wire.

The phone are connected using the same broadband internet connection that plugs into a computer or router. VoIP phones convert calls into digital signals within the phone itself. They don’t rely on the physical exchanges that landlines do.

Because everything is digital and is using an internet connection, VoIP service providers are able to offer a wider and more useful set of features that enable businesses and their employees to be more productive and efficient with their day-to-day communications.

In terms of reliability, great VoIP service depends on having a fast, secure internet connection. Before switching to VoIP, businesses will want to ensure their internet connection meets the requirements for VoIP service.

Still don’t understand how this technology works? Get more insight on what is VOIP and how it works below.

VOIP and How it Works

VoIP functions much like any other data you send over the internet such as whatsapp messages or e-mail in that it converts voice communication into data packets and sends it over an IP network. With VoIP,  it makes it unnecessary to have a traditional phone line installed in your business or residence, since you can make calls using your internet connection. Because VoIP uses packets, much more information can be carried over the network to support and enhance your communication needs.

An advantage of using a VoIP system for your communications is that it cuts down on the number of providers and solutions you need. In addition, it gives you access to advanced applications that can potentially help you and your staff be more agile and productive.

Is VoIP the same as a landline?

VoIP stands for Voice Over Internet Protocol.The phone are connected using the same broadband internet connection that plugs into a computer or router. VoIP phones convert calls into digital signals within the phone itself. They don’t rely on the physical exchanges that landlines do.

Does VoIP slow down internet?

VoIP and internet speed. The speed of your connection is very important. If you have a very fast connection then VoIP won’t affect it too much. In fact, talking on a VoIP call for an hour uses less bandwidth than surfing the net for an hour so it won’t affect your bandwidth too badly.

What are the advantages and disadvantages of VoIP?

VOIP and how it works

VoIP Business is growing worldwide. While the technology has countless advantages, it also has its share of disadvantages. Advantages include the huge potential savings and greater scalability of systems. One disadvantage is that it requires a reliable internet connection with high bandwidth availability. other advantages and disadvantages are:


  • Cost
  • Accessibility
  • Flexibility
  • Voice Quality
  • Extra/Less Expensive Features


  • Reliable Internet Connection Required
  • Power Outages/Emergencies
  • Latency



As VoIP works off your already existing internet connection, there’ll be no need for a traditional phone line. Therefore the initial setup and ongoing costs will be less for operating a VoIP system than a more traditional phone system. That means you only need to deal with one account, one bill, for both internet and phone.

In addition, Calls from PC to PC over the internet is free. Calls from PC to landline usually have a cost attached but the rates are significantly less than with a traditional phone line.


There’s a clear difference between a VoIP phone system and a traditional phone system. For a VOIP phone system, distance or location makes no difference, whether you are calling your head office on the other side of the country or making a call to the other side of the world. As long as you both have an internet connection and a communicating device, communication is possible.

All that is necessary is that you sign into your broadband account. If you are frequently on the road, or  away from the office but wish to remain connected, you can do so at very minimal cost. VoIP  is much more convenient than a traditional phone line.


Unlike a PBX (Private Box Exchange) a VoIP network has a great deal of flexibility.  With a private, internal phone network, you are limited to how many phones can be added to the system by the number of lines available within the system. With a VoIP network, you are limited only by bandwidth, so  thousands of connections can conceivably be made.

Voice Quality

If you have a reliable and fast internet connection with good bandwidth, you should experience a good voice quality that is as clear as clear, but definitely better than a traditional phone connection. If you are in a rural area without a strong connection, your qualities will suffer and voice might not be clear.

Extra /Less Expensive Features

Traditional phone services have a selection of extra features for which you usually pay more. VoIP is different. It comes with a wide selection of extra features like call forwarding, call waiting, voicemail, caller ID, three-way calling and more. You can also send data like documents and pictures while you are engaging in conversation.

VoIP also has the advantage of allowing you, your staff, and your clients to hold video conversations, access and exchange data files, and more, while the conversation is ongoing. This allows for more integrated and flexible meetings that can seamlessly include people from multiple office locations throughout the world.


Internet Connection A Must

You cannot operate a VoIP phone system unless you have a reliable internet connection with sufficient bandwidth. If your current internet service is poor, it’s better you upgrade before thinking of using the VOIP service

Power Outages/Emergencies

If you operate a VoIP network and the power goes out, you no longer have an internet connection, so you no longer have access to your phone system. While this may be a minor irritation if it happens rarely and the outage is short, it can be a major headache if your power is out for a longer period. Or if you power is unstable. for better experience, connect your device to an uninterrupted power supply.

Emergency services can find it difficult to trace calls to a VoIP system.

For these two reasons, many businesses will maintain at least one traditional phone line in order to maintain communications in power outages and emergencies.


Due to bandwidth requirements, some calls may appear to lag, delay, or disappear altogether. This is because the packets of information need time to reassemble in order for an effective call to be made. This problem is becoming less of an issue as newer, more sophisticated data algorithms come into use.

Is VoIP good for business?

VoIP (Voice over Internet Protocol) phone systems make good sense for small businesses. In fact, recent research finds that more than one-third of all businesses are now using a VoIP phone system, with the vast majority of those being businesses with fewer than 50 employees. This is because of the advantages that VOIP offers.

Checklist Of Criteria For Switching To VoIP

VOIP and how it works

Regardless of it’s advantages, VOIP also comes with some disadvantages so it’s important to weigh the balance before switching from your normal telephone to VOIP. Use the criteria below as a guide.

1.  The business must have hardware for running off SIP.  SIP (Session Initiation Protocol ) is the means by which Internet telephony service providers (ITSPs) are able to deliver telephone services and unified communications for customers equipped with SIP-based private branch exchange (IP-PBX).

2.   The business owners must be interested in saving money. If saving money is less important than a familiarity with an existing traditional PBX-based telephone system, then VoIP is not for you.

3.    Are you looking for a greater scalability of system? VoIP allows you to grow into a phone network system in ways that a traditional PBX cannot.

4.   The business must have access to high bandwidth. VoIP will not function satisfactorily without it. Check with your ISP provider if need to upgrade your bandwidth.

How much bandwidth is needed for VoIP?

For most standard codecs, you’ll need anywhere from 85 – 100 kpbs of bandwidth per concurrent call. In most cases, sufficient bandwidth is enough to ensure high quality voice calls on your VoIP system

What to expect once your VoIP system is up and running

Once you have a VoIP system up and running, the benefits to your business are undeniable. The savings alone are reason enough to make the switch. Businesses have already saved themselves up to 60% a month by switching over to VoIP.

How reliable is VoIP?

VoIP is very reliable. As long as you have a high-speed internet connection, and a constant power supply you’ll experience high-quality voice calls with 99.9% connection up-time.

While VoIP wasn’t always reliable, it’s now the most reliable and lowest-risk voice communication option for small and medium-sized businesses.

But reliability isn’t the only reason to go with VoIP. There are several more benefits, including:

  • Flexibility (you can customize your plan and change it over time),
  • Portability (you can make calls from any device, anywhere),
  • Scalability (it’s easy to add new features and users),
  • Cost-effectiveness (It’s about half the price of POTS), not to mention the
  • Potential integrations (connecting your phone system to your CRM, for example).


voip and how it works

Most business owners agree that the advantages of VoIP far outweigh the disadvantages. So if you have all the requirements, why not give it a try? and trust me, as long as you have a constant power supply and a good ISP you’ll enjoy the service. So ahead and implement or recommend this to your office, school or home.