VoIP is an acronym for Voice over Internet Protocol and is a technology that allows you to make and receive phone calls and video calls over the internet instead of landlines.
Most people consider VoIP the alternative to the local telephone company. If you have an internet connection, you can call anyone without the need for traditional, local phone service or physical copper wires. All you need is high-speed internet and a VoIP service provider to handle the calls.
A trusted VoIP provider can handle everything for you. Plug your IP phone in, and you're done. These digital phones use your high-speed internet connection to establish connectivity. VoIP converts your phone calls into data that is sent over the internet. You can use the Ethernet cables or skip them if you have a strong Wi-Fi signal. It does so at a much lower cost than older telephone systems. Voice over IP has many advantages over traditional phone service.
What is the difference between VoIP and landline phones?
The main difference between VoIP phones and landline phones is that a landline phone is hardwired into a physical location using copper wires. A VoIP phone, on the other hand, makes and receives calls over the internet and is not bound to a specific location. Traditional telephones use analog lines to carry voice signals. If you want to make calls, you have to have extra wiring installed.
Milestones
| Year | Achievements |
| 1966-1974 | Linear Predictive Coding was introduced, packet voice applications came into existence, and the first successful real-time conversation over ARPANET was introduced. |
| 1977-1991 | Separation of IP from TCP, the code-excited linear prediction (type of LPC algorithm) was developed, a voice-over-IP application (speak Freely) was released to the public domain. |
| 1992 | InSoft Inc. announces the desktop conferencing product Communique, which includes VoIP and Video. |
| 1993 | The VocalChat, a commercial packet network from VocalTec, was introduced. |
| 1995 | VocalTec releases internet Phone commercial Internet Phone software |
| 1999 | SIP specification RFC 2543 was released, the first open-source private branch exchange software was developed, a discrete cosine transform was adopted |
| 2004-2012 | Many companies start introducing the Commercial VoIP service providers; wideband codec introduced, Apple introduces FaceTime, and later Opus Codec was introduced by using LPC algorithm and MDCT. |
How does VoIP work?
Voice over IP converts your voice to a digital file, compresses it, and sends it over the internet. The VoIP service provider (much like your internet service provider) sets up the call. Many people choose VoIP over traditional landlines because there is less startup cost involved and they can make calls using the internet, which saves them money on long-distance charges. Voice over IP uses Internet Protocol, an essential building block of the internet. IP telephony is a massive innovation from the century-old telecommunications system.
In four steps, here's how VoIP works.
- Your phone connects to your switch or router in your Local Area Network (LAN).
- When you dial a telephone number, your IP phone tells your VoIP service provider to call the other party.
- Your VoIP service establishes the call and exchanges data packets from your IP phone.
- Your VoIP phone converts these digital signals back into the sound you can hear.
Voice over Internet Protocol bypasses the telephone company entirely. Wherever you have a broadband internet connection, you can use VoIP. It's a significant upgrade from an analog phone system. You used to need expensive, proprietary equipment to use VoIP — but that was over 20 years ago! Today, VoIP is built upon open standards such as Session Initiation Protocol (SIP). SIP provides complete interoperability between different desk phones, conference phones, and VoIP apps.
Cloud-based PBXs are responsible for features like voicemail, conferencing, and call routing. When you think about it, they act as their own full-service phone companies that you control. All you need is a broadband internet connection (cable, DSL, or fiber) and you can reap all the benefits of VoIP.
Benefits of VoIP
- Lower cost – Many consumers and businesses alike have realized substantial cost savings and lowered their phone bills by over 60%.
- High-quality sound - There's a noticeable difference in the call quality, so the audio isn't muffled or fuzzy.
- Advanced features – Leverage premium features to run your company such as auto attendants, call recording, and call queues. They're often included with business phone service plans.
- Call anyone worldwide – International long distance rates are as low as $0.04 per minute to call Mexico or $0.01 to reach the United Kingdom.
- Business phone numbers for a remote work team – Use your phone service wherever you work. No technical setup is necessary if you work from home. The good news is that VoIP desk phones aren't expensive, and you can even get them for free from your VoIP service provider. Plus, providers include a mobile app that you can use on your desktop or mobile device to make calls instead of using a traditional handset.