VoIP telephony: what is it, how does it work and how to set it up for business
Many companies use the VoIP protocol as a way to organize internal communication and interaction with customers. VoIP telephony — affordable, multifunctional, relatively low-cost, and better communication channel, thanks to which you will not lose a single call or a single client.
What is the Voice over Internet Protocol?
In simple terms, VoIP telephony is a digital type of telephone communication. The name stands for Voice over Internet Protocol.
The essence of VoIP technology is that data (sound, video, image) is transmitted via the Internet or local area networks (LAN) in a modified compressed form for subsequent playback.
The SIP address (Session Initiation Protocol) is responsible for the stable operation of VoIP-telephony. It builds the quality of the signal between two points interacting in the virtual space.
VoIP technology appeared on the telecommunications market in the late 1990s as an alternative to traditional telephone communications. It did not completely replace landline mobile communications, but it opened up wide opportunities for companies in the field of communications. Lack of local tethering, voicemail, call forwarding and other features have made VoIP protocol for business a telecommunications leader.
VoIP technology performs a number of tasks that are more difficult and expensive to solve through a conventional mobile network.
How the VoIP protocol works
The principle of operation of VoIP telephony is a sequential algorithm. According to him, during a call, the service receives an analog audio signal and transforms it into digital. The subscriber's voice is digitized, distributed into small data packets, and at the destination, it is decoded back into an analog signal.
If we describe the process of VoIP technology in more detail, we can distinguish the following steps in it:
- The subscriber dials the number.
- VoIP telephony server accepts connection requests.
- The system identifies the user, sets the geolocation and the route of the signal.
- A business VoIP application (or adapter) converts analog audio waves to digital and encrypts them.
- The ISP sends IP packets with codecs to the VoIP telephony server.
- The VoIP provider forwards the call over the network to the subscriber.
- The user receives the call in decoded form.
The whole process lasts hundredths of a second and takes place in real-time, so quality loss is minimized.
How does VoIP telephony differ from analog communications?
The difference between VoIP-telephony and analog connection primarily lies in the infrastructure that provides them. Unlike traditional telephone communication, which does not work without cables and telephones, VoIP protocol for business is implemented through devices that have a stable Internet connection.
Even when the subscriber is roaming, if the user's device has access to the Internet, the benefits of VoIP technology are available to the user. You can make and receive this type of phone call from virtually any device connected to the network.
VoIP technology has more potential and offers advanced functions. It allows:
- make automatic calls;
- set up call forwarding;
- create "white" and "black" lists of contacts;
- receive a large number of calls at the same time and much more.
Taken together, this makes the VoIP protocol for business one of the most effective tools for building branched communications.
Features of the VoIP technology and the existing information processing algorithms help to transfer data from subscriber to subscriber in the best quality, while the speed and quality of analog communications leave much to be desired.
The main advantage of VoIP telephony over analog communications is the pricing and cost. Communication through the World Wide Web has a minimum price when paying for calls, unlike an analog connection, for which telecom operators charge a fee.
For VoIP technology, it doesn’t matter how far apart the interlocutors are, that is, international calls are cheaper. According to statistics, the price of VoIP-telephony is 70% more cost-effective than conventional communication.
VoIP for business has other benefits, which we have written about before. To find out more about them, read our article.
When is it worth implementing VoIP technology?
In most cases, VoIP-telephony is relevant for business, regardless of its size. Companies of medium and large scale use VoIP technology by default because it saves a lot of money on organizing communication with customers. Small businesses are gradually adopting the VoIP protocol.
VoIP telephony is in demand among operators, contact centers, network companies, corporations providing information services to a large number of subscribers. VoIP technology is an indispensable solution for businesses that are somehow involved in customer interaction and have call traffic.
For example, VoIP protocol services will be useful to healthcare institutions and organizations. It can be used in large government-type hospitals, as well as in small private clinics, rehabilitation centers and Spas.
In the hospitality industry, VoIP technologies provide quality services in the hotel and beyond. Booking rooms, contacting staff, confirming a reservation - VoIP telephony provides special features that improve the customer experience: auto attendant, speed dial, call recording.
VoIP protocol can also be used within a company, connecting remote employees to an IP network or connecting branches of the same organization. Now many firms work remotely, often colleagues are not only in other cities but also on different continents.
Before implementing the VoIP protocol in their system, a business should determine the tasks that need to be solved with the help of this technology. VoIP-telephony significantly reduces the cost of organizing voice communications, eliminates the disadvantages inherent in an analog connection, and provides many useful and convenient features. For companies, this is a great way to simplify communication with customers and improve the quality of service at the same time.
Much of the cost and quality of communication depends on the choice of the service provider. Decision Telecom has been providing telecommunication services since 2012.
Thanks to the direct connection to the communication channels of international operators and the Smart Routing mechanism, we always provide a high-quality connection for your voice calls.
Together with VoIP-telephony, you can immediately install a CRM-system and a package of additional functions.