What Is A VoIP Phone System And How Does It Work?

Voice over Internet Protocol, or VoIP for short, is a technology that has gained popularity worldwide, with its market valuation expected to reach $93.2 billion by 2024. Launched in 1995, this developing system has changed the way we communicate. But fret not if you have no idea what a VoIP phone system is. This guide will delve into what it is and how it works, including its pros and cons. Be it for individual or business use, this is all you need to know about this internet phone service.

What Is It?

Voice over Internet Protocol (VoIP) is a technology transmitted using an internet connection instead of a local telephone company. In simple terms, it is just another phone system, but better. Instead of working based on a circuit-switched network, digital transmission is done through IP packets over a packet-switched network. Compared to a traditional landline phone system, VoIP offers more features. On top of this, it also runs over the internet, so all your data is securely stored in the cloud.

How It Works

How it works is that a VoIP service provider sets up your call. VoIP will convert voices and multimedia content into a compressed digital signal, then send it over the internet. The digital transmission is then uncompressed at the receiving end to be the sound you hear through your phone.

Pros and Cons

Now, the important features you will want to take note of the advantages and disadvantages.


  • Lower costs

A landline phone system costs about $50 a month per line, while VoIP contracts cost less than $20 per line.

  • Portable

A VoIP number can be used everywhere. For travel enthusiasts, this is undoubtedly good news. Even when you change address, you can retain the same number.

  • Increased accessibility

Because it is cloud-based, you can make calls anywhere with a decent data connection. You can also direct calls to have the voicemails emailed to you if you are unavailable to pick up a call.

  • Better voice quality

Ever get a call and suffer through the background noises and echoes? VoIP phones end those interruptions and make the quality top-notch. You can enjoy crisp and clear calls with no lags or call dropouts. 

As for cons, there are only these few.

  • Requires reliable internet connection
  • Limited location tracking for emergency calls

The downside of portability and accessibility is being unable to pinpoint the origin of a call. Even though callers rarely need this information, it can affect emergency services like 911 and may delay response time by first responders to the site.

Reap Its Benefits Today!

As you can see, the benefits of a VoIP phone system outweigh the drawbacks. Even if you’re still on the fence about switching to VoIP, the reality is that the use of landlines will eventually come to an end. So, partner with a trustworthy provider and set up your reliable VoIP system today!

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