How VoIP works: An early guide

 

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Voice over Internet Protocol (VoIP) phone systems are game changers for businesses looking to streamline their company's phone call engagements and save money. Here's how they work.

The Voice over Internet Protocol (VoIP) market is growing rapidly - and for good reason.

For example: The VoIP market has grown from 1 billion mobile subscribers in 2017 to an estimated 3 billion subscribers in 2021, with projected revenue of $ 194.5 billion by 2024, up from $ 14 billion in 2019.

These are impressive numbers for the technology market that was introduced in the 1990's and has grown in parallel with the Internet, which was introduced to global consumers in the 1990's and is dominant today.

The uninterrupted integration of the telephone with the Internet and the efficient and cost-effective operation of both have increased the demand for VoIP connections, as businesses, business partners and Looking for less expensive communication strategies when engaging with employees.

How does the VoIP phone work on the Internet and what does it bring to the table for cost and performance minded companies? Here is a primer.

What is VoIP and how does it work?

VoIP is a telecommunications technology system that provides real-time voice communication and multimedia content (via video) over Internet Protocol (IP) networks, similar to the Internet.

With VoIP, data is transmitted digitally through IP networks. This is a departure from the standard analog telephone lines used in legacy phone systems.

Structurally, VoIP takes analog-based phone calls and converts the message into a data packet for Internet phone calls, in which a VoIP server is used to connect telephone calls to external phone networks. The technology then delivers these packets of data over the public or private Internet, just as email messages are transmitted.

VoIP allows end users to make calls to any type of phone, including landlines and mobile phones, as well as computer-based phones (where the caller uses headphones and speakers to make and receive phone calls. )

VoIP usage is very user friendly. All the end user needs are a computer or other digital communication device (such as a mobile phone), internet connection, and VoIP software applications.

The technology can also be used with VoIP-based telephones that are plugged directly into devices such as mobile phones or computers, routers, wireless technologies, or Ethernet. With what VoIP providers call "unified communications", system users can engage other workers, users, or vendors with a single communication platform that includes voice, video, web conferencing, and text messaging. Are

Business users can take advantage of VoIP to make phone calls and get business phone numbers at work or away from the office. The wireless VoIP system enables users to store and access customer data wherever they make calls - from the office, warehouse, or even in different countries.

Technology providers advise companies that install VoIP phone systems to keep their systems on private IP networks, primarily for security and performance reasons.

Advantages of VoIP technology

For every type of business, VoIP offers many benefits - mostly in the areas of cost and performance.

Less expensive to use.

Although company data varies from company to company based on individual needs, businesses can expect savings of up to 40% -60% by switching from legacy / landline systems to Internet-based phone systems.

Companies using VoIP do not have to incur heavy costs for systems and hardware. All the business needs is a reliable internet connection with strong switches and routers and it is good to go. Some VoIP providers will also provide free software apps when signing up, so companies don't even have to invest in physical desk telephones.

More efficient in managing

With VoIP phone systems, it's easy for system administrators to manage the entire phone system. For example, adding a extension to a company's phone system requires only a simple software adjustment, without any complicated rewiring of new phones to work on the existing system.

The benefits of mobile

With more companies operating remotely, VoIP puts the power of the company's entire phone system in the hands of the employee via mobile phone. Features of VoIP sync software make it easy for staff to use their phones at home, on the road, or when traveling abroad.

The technology also allows call routing on a team member's mobile phone hundreds of miles from the home office.

Helpful features

Employees of the company who are accustomed to having a bundle of features on their landline phone systems will not lose anything when using the VoIP phone system.

If anything, consumers will get more features that make their devices easier to use and improve the customer experience. Named directories, call records, video and audio messaging, voice mail files, digital address books, and seamless integration with Internet browsers for easy calling and receiving are some of the helpful features that users use the VoIP phone system. Time is of the essence.

Strong system integration

With VoIP phone systems, information technology managers can easily integrate company phones with other company systems, such as helpdesk, call centers, and customer relationship management (CRM) applications.

How to set up VoIP in your company.

While the benefits of using a VoIP phone system are huge for businesses large and small, companies need to plan ahead before installing an Internet-based phone system.

1. Know what is in your hand.

On a full scale, evaluation of the company's extensive phone system is strongly recommended before fully switching to VoIP.

This assessment should include an overview of existing network capabilities and the best way to reach an upgrade to the company's existing telecom system. Ask your potential VoIP provider or external consultant to review your existing system's call volume and investigate potential vulnerabilities and issues that may arise after installing an Internet phone system.

2. Know the technical capabilities of your staff.

It is also a good idea to make sure that your existing IT staff depends on the task of switching to the VoIP platform. While Internet-based phone networks are easy to manage, the company's decision makers should have a handle on how much technical support will be needed to manage the new VoIP phone system.

3. Choose the right vendor for you.

Start the testing process by deciding what kind of VoIP vendor relationship you want. It basically comes with three options:

A vendor that hosts the company's entire phone system: Here, the VoIP vendor owns and provides the network system, while the company pays for or leases the original phones. The company will also pay the vendor a subscription price for VoIP services.

A system that is purchased and managed internally by the company: When a business manages its VoIP system, the equipment of that system is placed on site and the business maintains and repairs the components of any system. Is responsible for The business will likely pay for the initial costs of installing the VoIP service as well as the Internet-based phone system.

A managed VoIP system that is purchased and maintained by the business but managed by a third party technology provider: In this scenario, the company owns the entire internal phone system and the third party provider provides the company's VoIP. There is a charge for managing the network. .

Techway on VoIP telephone systems

VoIP phone systems give businesses what they want from a communication system - performance, efficiency, value, and cost savings, all wrapped up in one package.

With large and cumbersome legacy landline systems on the way out, VoIP phone systems are expected to expand globally over the next decade - especially since remote workforce needs more agility than business phone networks. Is.