What is a VOIP Phone & How Does It Work

Discover the magic of VoIP phones in our informative blog post. Understand the technology, its benefits, and how it transforms communication with Intermedia.

What Is a VoIP Phone & How Does It Work?

September 8, 2023

Explore other posts on these topics: Moving to the Cloud Unified Communications

As a business leader, you’re always seeking new tools and techniques for pushing your company forward. One outstanding resource you need to know about is Voice over Internet Protocol technology.

VoIP phone services have revolutionized telecommunications worldwide, and 31% of businesses are already users. Likewise, VoIP phones can take your organization’s connectivity to the next level with unparalleled flexibility and savings.

Exactly what is a VoIP phone system, and how does one work? Learn more about what this service can do for you.

Key Takeaways:

A top VoIP phone provider allows you to conveniently handle your communications in one service through your existing internet connection.
VoIP phone lines are superior to landlines in their security, reliability, and call quality.
You gain multiple advantages with a VoIP telephone system, such as cost savings, flexibility, and integration with advanced productivity features.
You don’t need to purchase additional equipment to set up a VoIP phone service, but you can invest in professional hardware if you want it.

What Is a VoIP Phone?

A simple VoIP definition is a communications technology that transmits calls over the internet instead of traditional copper phone lines.

Specific VoIP capabilities vary by devices and providers, but voice calls, text messaging, and one-on-one video calls are usually standard. You’ll need a Voice over IP phone to use the service.

VoIP Phone Definition

People generally refer to a VoIP phone as meaning any device that connects to the internet and uses the protocol for calls. These devices are able to compress multimedia information into data packets for online transfer. Your VoIP phone also decompresses such data to receive these transmissions.

How Do VoIP Phones Compare to Traditional Phone Systems?

Analog phone services rely on a physical line for connectivity. This type of connection restricts the user to a specific location.

Phones with VoIP capabilities connect through the internet, meaning you can use the service anywhere you can get online. Whether you’re using wired ethernet, Wi-Fi, or mobile data, your VoIP phone is available.

Consider the following ways a VoIP phone system compares to traditional phones:

As you can see, VoIP phone services match or outperform landline phone systems in every critical category.

How Does a VoIP Phone Work?

Transmitting conversations in real-time involves much more than written messages or prerecorded media. Your professional VoIP phone system requires the highest levels of reliability, security, and efficiency.

A VoIP phone goes through the following process to establish a secure connection:

You place a call from your device by dialing the number or selecting a contact, just like on a traditional phone.
Your device first sends a registration request to your provider’s servers, which verifies your device’s credentials.
The server then sets up and manages the connection between your device and the other party, encrypting and sending signals over the appropriate network.
Once your conversation begins, your device converts your speech into compressed data packets and transmits them to your provider.
Your provider conveys the data to the other provider, which forwards the data (or converts it to audio first if your listener is not on a VoIP phone).

Those may seem to be a lot of steps for a simple conversation. However, the state-of-the-art VoIP phone technology handles the whole process instantaneously, making it hardly different from a traditional phone call for users.

What Are the Transport Protocols for VoIP?

Business professionals have to concern themselves with security more than ever. Fortunately, when you work with a reputable provider such as Intermedia, your VoIP phone connections follow strict transport protocols to process and protect the conversation.

Transmission Control Protocol

TCP is one method devices use to communicate with each other over the internet. This protocol ensures the information traveling between two computers is accurate and arrives in the correct order.

TCP prioritizes adaptability and reliability to ensure message delivery, even when network resources are low or connectivity failures occur. Because of this, a small amount of distortion might happen, particularly when a user has low bandwidth. Still, the message is likely to get through.

User Datagram Protocol

UDP is a connectionless protocol that emphasizes speed over accuracy in transmission. For applications that don’t require ordered message delivery, UDP uses fewer system resources and does the job more quickly.

Fortunately, as a top provider Intermedia deploys both TCP and UDP to deliver the best possible type of connection at any given time.

What Are the Benefits of Using VoIP Phones?

A VoIP phone service offers more advantages than the plain old telephone system could ever dream of.

Easy Installation

You won’t wait on technicians or have to endure weeks of installation time. With a VoIP phone system, you can install or migrate from another provider with no downtime.

Advanced Voicemail

Not only do you have access to voicemail on your VoIP phone, but you also get additional features. For example, you can check your voicemail while online, get a transcription, or forward it to your email.

Scalability

Your company can increase or decrease lines effortlessly with easy-to-use controls in your administrative panel. If demand surges or dips, you can adjust the number of users and extra features accordingly.

Flexibility

An on-premise PBX phone system restricts your company to hiring onsite workers in one location. VoIP phone capabilities open the door to worldwide remote talent. You can also transfer calls to different devices while you’re on the go for optimal mobility.

Lower Costs

Switching to a VoIP (Voice over Internet Protocol) system offers businesses numerous ways to cut down on expenses, making it a cost-effective alternative to traditional landlines. Here’s how VoIP can help reduce costs:

Eliminates the Need for Expensive Hardware Traditional landline systems often require significant investment in hardware installation, wiring, and ongoing maintenance. With VoIP, you only need an internet connection and compatible devices such as laptops, desktops, or smartphones. This means there’s no need for specialized telecom equipment, which can reduce both upfront costs and ongoing maintenance expenses.
Flexible and Remote Work Setup VoIP enables employees to make and receive calls from virtually anywhere, which can minimize the need for a central office or extensive infrastructure. By supporting a remote or hybrid work model, businesses can potentially downsize physical office spaces and reduce rent, utilities, and other associated overheads. This flexibility allows for operational savings and promotes a more agile workforce.
Reduced Call Charges Unlike traditional phone lines that often charge per call—especially for long-distance and international communications—VoIP services typically offer flat-rate pricing or even unlimited calling packages. This can significantly reduce your monthly phone bills, especially if your business makes frequent international calls. As your business scales and call volume increases, VoIP services become even more cost-efficient.
No Extra Cost for Adding Users Traditional phone systems often require purchasing new hardware and lines for each additional user. In contrast, with VoIP, adding new users is simple and doesn’t require costly infrastructure changes. Since many VoIP providers offer tiered pricing based on the number of users, the cost per user typically decreases as your team grows, further enhancing your savings.
Lower Maintenance and IT Costs With a cloud-based VoIP system, most maintenance and troubleshooting tasks are handled by the service provider, which reduces the need for in-house IT support. Traditional phone systems often require dedicated technicians to manage hardware failures, upgrades, and system maintenance. VoIP eliminates these complexities, allowing businesses to operate with leaner IT teams.

By adopting VoIP, your business can streamline operations, reduce overhead, and eliminate unnecessary telecom expenses, allowing you to invest more resources into growth and development.

Security

What is VoIP phone security like? Your phone calls, video conferences, chats, and text messages all feature high-level encryption, ensuring that your communications are secure from eavesdropping and unauthorized access. With Intermedia’s VoIP service, protecting confidential data and meeting regulatory compliance becomes easier than ever. The platform employs robust security protocols, including secure RTP (SRTP) and Transport Layer Security (TLS), to safeguard your communications both in transit and at rest.

Additionally, Intermedia offers comprehensive security features such as automatic updates and patch management to protect against emerging threats and vulnerabilities. The system also includes advanced user authentication methods, such as two-factor authentication, which adds an extra layer of security to your accounts. With these safeguards in place, businesses can communicate confidently, knowing that sensitive information remains protected while maintaining compliance with industry regulations, such as HIPAA or GDPR, where applicable.

Simple Integrations

Unified communications with VoIP technology enhance not only the efficiency of your communication but also the integration capabilities with various productivity software. Intermedia’s VoIP platform offers seamless integration with a wide range of applications, empowering businesses to streamline operations and improve team performance. With support for popular customer relationship management (CRM) tools like Salesforce and HubSpot, your sales and support teams can access customer data directly from their phone interface. This accessibility enables them to make informed decisions and enhance customer interactions, fostering stronger relationships and improving satisfaction.

In addition to CRM integrations, Intermedia’s VoIP solution includes compatibility with collaboration tools such as Microsoft Teams and Slack. This feature allows teams to communicate effortlessly, enabling users to initiate VoIP calls directly from these platforms without switching applications. Furthermore, the system supports video conferencing and screen sharing, facilitating effective remote meetings and collaboration among team members, regardless of their physical locations. These integrations ensure that all communication tools work harmoniously, creating a cohesive workflow that boosts productivity.

Moreover, Intermedia provides advanced analytics and reporting tools that enable businesses to track call metrics, employee performance, and customer engagement levels. By offering real-time insights, organizations can identify areas for improvement and make data-driven decisions that enhance operational efficiency. The combination of these integrations and features positions Intermedia’s VoIP platform as a powerful solution for businesses looking to enhance communication, foster collaboration, and ultimately achieve greater success in their operations.

How Do I Get a VoIP Number?

Here’s a simple checklist for obtaining a VoIP number for your business:

Choose a VoIP Provider – Research and select a VoIP service provider that meets your business’s communication needs and budget.
Select a Phone Number Type – Decide whether you need a local, toll-free, or vanity number based on your business goals and customer base.
Sign Up for a Plan – Choose a VoIP plan that suits your business’s calling requirements, such as the number of users, call volume, and features offered.
Port Your Existing Number (Optional) – If you want to keep your current business number, most providers offer number porting services to transfer it to the VoIP system.
Set Up Your Devices – Install any necessary apps or configure your VoIP-compatible phones, computers, or mobile devices to start making and receiving calls.

Once you’ve completed these steps, your VoIP number will be ready to use, allowing you to take advantage of the flexibility and cost savings of virtual phone systems.

The Types of Business Phone Numbers

VoIP systems are compatible with a variety of business phone numbers, allowing you to choose the type that best suits your company’s needs. The three most common types are local, toll-free, and vanity numbers.

Local Numbers

Local Numbers provide businesses with a local presence in a specific geographic area. These numbers are tied to a particular area code, which can make your business appear more familiar and trustworthy to local customers. Using local numbers with a VoIP system allows you to expand your presence to multiple regions without physically being there, offering flexibility while maintaining a local touch.

Toll-Free Numbers

Toll-Free Numbers are ideal for businesses that want to offer a free, convenient way for customers to reach them. These numbers usually start with 800, 888, or other toll-free prefixes and can help businesses appear more professional and accessible. VoIP makes it easy to route incoming toll-free calls to any device, allowing you to manage customer inquiries from anywhere while providing a cost-free calling experience for your clients.

Vanity Numbers

Vanity Numbers are customized phone numbers that spell out a specific word or phrase related to your business, such as 1-800-FLOWERS. These numbers are memorable and can be a powerful marketing tool. With VoIP, you can use vanity numbers just like any other number, making it easy for customers to recall your contact information while maintaining the flexibility and cost savings of a virtual phone system.

H2. What Do I Need To Support My Voip Phone System?

To use a VoIP phone system effectively, the most critical requirement is a stable and high-speed internet connection. VoIP relies on your internet to transmit voice data, so you’ll need a broadband connection with sufficient bandwidth to handle multiple calls at once without any lag or dropped signals. A minimum of 100 kbps per concurrent call is typically recommended, but higher speeds ensure clearer voice quality and smoother communication, especially for businesses with high call volumes.

In addition to a reliable internet connection, you’ll need compatible devices to use your VoIP system. These can include VoIP-enabled desk phones, computers, or even mobile devices like smartphones and tablets. Many VoIP services offer apps that allow you to make and receive calls directly from these devices, giving you the flexibility to manage business communication from anywhere. If you prefer traditional phone hardware, many VoIP providers also offer adapters that allow you to connect standard phones to your internet network.

Lastly, consider investing in a Quality of Service (QoS) router to prioritize voice data traffic on your network. This ensures that calls remain clear even when other devices are using the internet for tasks like file downloads or video streaming. With the right internet setup and compatible devices, your business can fully leverage the flexibility and cost savings that VoIP offers.

What Type of VoIP Phone System Is Best For Your Business?

VoIP phones come as either wired hardware or softphone apps. Determine which you’ll need for your company to be its most productive.

Types of VoIP Phones

One reason VoIP phone systems offer excellent cost savings is you can use a softphone on smart devices for calls. This app gives your equipment VoIP capabilities, so team members can use personal phones and tablets as VoIP cell phones anywhere they have the internet.

Also, you can easily have multiple numbers on a single device for professional communications. Because business calls run through the softphone app, conversations remain secure, and the company retains oversight of these interactions.

On the other hand, you can get plug-and-play hardware that connects to the internet as a tool exclusively for VoIP calls. These VoIP hard phones guarantee that workers have a high-quality device that works seamlessly with your service.

What are the VoIP phones that have the best features? Popular equipment includes:

Unite X303W
Polycom VVX 450
Yealink T33G
Yealink T57W

You can also obtain superior VoIP phone accessories and conferencing equipment. For example, the Yealink CP965 is an excellent choice if you need a device that offers a strong microphone and speaker for group calls.

Choosing a VoIP Provider

When selecting a VoIP provider, it’s crucial to consider several key factors to ensure the service meets your business’s needs. First, assess the reliability and call quality offered by the provider. Consistent, high-definition audio is essential for maintaining professional communication with clients and team members. Look for providers with strong uptime guarantees and multiple data centers to ensure minimal disruptions.

Next, examine the features included with the VoIP service. Providers can offer a wide range of features, such as voicemail-to-email, call forwarding, and video conferencing. Be sure to choose a provider that offers the tools your business requires now, as well as the scalability to add advanced features as your business grows.

Lastly, evaluate the cost structure and customer support. Many VoIP providers offer flexible pricing plans, so you’ll want to compare their value based on the features and support they provide. Consider providers that offer 24/7 customer support, especially if your business operates across different time zones or relies heavily on communication. Ensuring you have access to quick support can make a significant difference in keeping your operations running smoothly.

VoIP Phone FAQs

Do I Need a VoIP Phone To Use VoIP?

If you already have an internet-enabled device (such as a smartphone, tablet, or PC), you don’t need to purchase additional hardware for VoIP functionality. A softphone app will provide you access to the services. Still, you can secure high-quality hard phone VoIP equipment.

How Much Does a VoIP Phone Cost?

Top-of-the-line VoIP phones with advanced features can cost hundreds of dollars. However, you can sometimes get a VoIP phone for free when you install a new business phone service. In any case, using a VoIP softphone app is always free with a top provider.

Is a VoIP Phone as Good as a Normal Phone?

A VoIP phone is better than a “normal” phone! VoIP phone services are less expensive, more secure, and of higher call quality than traditional phones.

Does a VoIP Phone Work Anywhere?

As long as you have a stable internet connection, you can use a VoIP phone. This flexibility allows companies to manage remote and hybrid teams worldwide.

Will My Customers Know if My Business Is Using VoIP Numbers?

No, your customers won’t be able to tell if your business is using VoIP numbers. VoIP numbers function just like traditional phone numbers, providing the same call quality and user experience.

Call Intermedia To Access the Full Benefits of a VoIP Phone System

Intermedia has been successfully helping companies make the best communications choices for decades . With our Worry-Free Experience, you can obtain the full flexibility, productivity, and cost savings of a VoIP system in no time.

Schedule a call with our team to discover how Intermedia Unite helps you work securely and productively from anywhere with a modern VoIP phone system!

The Intermedia Team

Intermedia helps businesses of all sizes connect better – through voice, video conferencing, chat, contact center, business email and productivity, file sharing and backup, security, archiving, and more – from wherever, whenever. And, as a partner-first company, Intermedia goes to work for our channel partners to help them grow their revenue and maximize their success.

September 4, 2024

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