What is a VoIP System? The Ultimate Beginner’s Guide

What is a VoIP system?
Maybe you have heard of VoIP communication, maybe you haven’t. However, you’re probably already familiar with it and don’t realize it yet.
VoIP stands for Voice over Internet Protocol and is a popular term in the telecommunications industry. VoIP is commonly known by various names such as online phone system, cloud phone service, virtual telephony, IP telephony, virtual calling tool, and more. All these names mean the same thing and deliver the same basic feature: transferring voice or telephone calls using an internet connection instead of a Public Switched Telephone Network (PSTN.)
What makes VoIP systems different from landlines?
Using a VoIP system allows telephone communication to be performed using an internet network independently or in combination with a telephone network. VoIP calls can be over long ranges (even international) at a very economical price, and even in the absence of a telephone cable network. Here are the key differences between VoIP and traditional Landline Telephone Systems.
VoIP Telephony
- Calls are transferred using the Internet
- Requires internet connection to function
- Free VoIP to VoIP local and long-distance calls
- International calling is very economical
- Scalable
- 3rd party app integrations
Landline Phones
- Voice transfer using copper and fiber optic cables of the PSTN
- Requires analog landline phones to function
- All calls cost money
- International calling is expensive
- Expensive and cumbersome to scale for business operations
How does a VoIP phone service work?
The functionality of VoIP phone service is quite simple. The VoIP phone system converts voice into digital signals when a call is initiated from the source. These digital signals are sent over an internet connection as data packets and finally converted again into voice when reaching the destination phone. This may sound like a difficult or time-consuming task, however, the entire process is almost instantaneous.
Important things to note about the process are:
- There is no delay in voice
- There is no loss of data
- Caller and recipient can use traditional phones for calls
What are the benefits of a VoIP system for business?
VoIP systems are a popular and efficient option for business communication. Many systems come with advanced features that are unavailable with landline calling or while using a personal device. This can offer businesses an effective way to optimize communication at scale without spending loads of money on a customized system. Some of the major benefits include:
- Economy – Using VoIP phone systems is extremely economical for businesses, especially the ones that need to handle a lot of incoming or outgoing calls. Being a cloud telephony solution, VoIP services can be configured with a direct IP connection to your phone network service provider, an existing internet connection, or a combination of both. This significantly reduces the cost of incoming calls, outgoing calls, international calls, and also the cost of equipment, installation, and maintenance. Cloud-based hosted VoIP services like Banter allow businesses to eliminate the need for traditional analog/desk phones, as VoIP calls can be made using existing devices such as computers, tablets, and personal mobile phones.
- Smooth adoption – The installation and configuration of modern cloud-based VoIP calling solutions are quick and simple, finishing within hours. There is no requirement for physical phone lines, analog phones, or individual phone connections. Cloud telephones can be installed on multiple devices at once and are ready to use instantly. There is no rigorous maintenance that is required to manage a VoIP calling solution for a business. There is no need for skilled IT staff to be on-premise to manage and monitor the VoIP calling solution, allowing employees to manage their settings themselves.
- Scalability – This is one feature that makes VoIP solutions stand out. In the current business environment, organizations sometimes need to quickly scale up or down their operations. A cloud telephone system allows instant increase or decrease in users’ accounts/numbers/extensions, and the business is only required to pay for what they need at the moment. Changing the scale of the cloud solution does not affect the overall performance, efficiency, or uptime. This is extremely useful for businesses that have seasonality issues or are in the growth phase.
- Mobility – Mobility and flexibility have become essential for business. VoIP calling solutions work wherever business takes you. Efficiently communicate anywhere an internet connection is available—most people have unlimited personal data plans, making the internet available nearly everywhere. A multi-site VoIP system keeps multiple branches connected, as digital phones enable employees to use their extensions from anywhere. The IT teams can also remotely manage the maintenance of the calling solution and deploy additional features or integrations without ever needing to be present in the office.
- Features and integrations – VoIP solutions are equipped with the latest technology, making it possible to deploy features in addition to calling. These features add a lot of value for businesses and reduce workload by optimizing the entire communication process.
Some of the best features of a VoIP phone system for business include:
- Call Forwarding
- Call Routing
- Caller ID
- Call Recording
- DND (Do Not Disturb)
- IVR
- Custom greetings
- Group Calling
- Call Analytics
- Contact Lists
Advanced VoIP Solutions such as Banter offer exclusive features in addition to the ones previously mentioned that can enable businesses to take their calling operations to the next level.
- Voicemail-to-email – Receive transcripts of voicemails via email.
- Calling Schedules – Create schedules and easily direct incoming calls to any phone number.
- Automation & Workflows – Implement automated routing and workflows to calls and free up your team to focus on more important tasks.
- Surveys – Automated call surveys solution that can be customized to organizational needs.
- Custom Dashboards – Get call analytics and insights in customized dashboards.
- Self Provisioning – Provision your desk phone with easy-to-follow instructions and leverage the most stable mode of communication.
- Number Porting – Port existing numbers to use with your VoIP solution.
- Multi-number Management – Manage multiple numbers on the same device.
- Integrations – Integrate calling solutions with over 2000 3rd-party business tools.
Get started today
If you are ready to get started with a VoIP solution, Banter offers a simple setup that can be completed in just a few minutes. Our team is available 24/7 to answer any questions so you can get exactly what your business needs. Start your free trial today and see what’s possible with an advanced VoIP solution.