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What is Voiceover Internet Protocol (VoIP)? Why do Businesses Use It?

Voiceover Internet Protocol (VoIP) Explained

Voiceover Internet Protocol (VoIP) allows people to place and receive phone calls over the internet. With society moving towards broadband, VoIP is replacing traditional phone lines. It offers more functionality than analog telephony and for less than half the cost. 

VoIP is used in a variety of different industries, including:

  • Education
  • Government
  • Telecommunications
  • Healthcare
  • Financial Services

Businesses have found VoIP to be beneficial in a number of ways, including:

  • Cost savings – Phone services are half the cost of traditional telephone services.
  • Availability and flexibility – VoIP is available from anywhere and the business can choose from different voice lines.
  • Ease of use – VoIP is simple to install, use and maintain.

VoIP is not just used in businesses, it has also become a popular choice for consumers. People use VoIP to make and receive calls from their computers, using their home internet connection or cell phone service provider. This is done over the internet, which means that the person does not have to pay long-distance charges when making a call outside of their local area code.

VoIP has been around for several years, but it is still considered an emerging technology. However, many people and organizations, including government agencies and the military, are just starting to see its potential and incorporating it into their daily communications.

Contact us now to explore how you can start using VoIP. 

VoIP can be used with a hosted PBX or work in tandem with other protocols, such as Media Gateway Control Protocol (MGCP) and H.323, or proprietary protocols like the Skype Protocol. The main benefits of a VoIP-only setup include:

  • Low set-up costs.
  • Affordable pricing with predictable and flat monthly rates.
  • Very portable and require no on-site installation.
  • Plans typically offer call waiting, call forwarding, and caller ID features.
  • Most VoIP providers will not require you to enter into a long-term contract, allowing you to cancel your service anytime.

The cons of a VoIP-only setup include:

  • VoIP-only services require higher bandwidth to maintain service availability and acceptable call quality.
  • VoIP-only often requires Quality of Service (QoS) rules implementation to preserve call quality.
  • There are a number of essential VoIP services that don’t offer mobile apps or mobile integration.
  • VoIP systems do not support multimedia communications because they are voice-only.

The benefit of using VoIP as opposed to traditional landline phones is that you don’t need to pay monthly rental fees or long-distance charges because your calls are routed through the Internet instead of traditional telephone services. In addition, you can choose between a variety of SIP providers, so you aren’t locked into one carrier.

VoIP is ideal for businesses that want to give each employee their own phone number. Businesses can create extensions for employees without paying for a separate phone line or lease expensive equipment from traditional phone companies. A company could give each of its employees an extension and route all their calls through one SIP trunking provider. This would allow them to easily transfer calls between departments without physically moving a landline phone from one desk to another. It would also make it easier for employees to move between offices or even countries.

Most service providers charge a monthly fee for their service, and you can use your existing computer, phone, and network equipment with their service. The only thing you’ll need to buy is a SIP adapter that allows your phone to connect with the VoIP network.

Signalmash VoIP Solutions

Signalmash offers straightforward VoIP solutions to improve customer communications and reduce costs. Reach out to us today and discover how you can power up your phone system with our state-of-the-art VoIP solutions. If you are already using a platform like Twilio or Plivo and want to save money, contact our experts for suggestions that will help cut costs. And unlike our competition, we never compete with our customers. 

Ask us how you can cut your Twilio or CPaaS bill up to 50%!!

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