16.08.2024
What Is VoIP Telephony, and What Are Its Pros and Cons?
Many companies use the VoIP protocol as a way to organize internal communication and interaction with customers. VoIP telephony is an affordable, multifunctional, and relatively low-cost communication channel that will help ensure that you do not lose a single call or a single client.
What is the Voice over Internet Protocol?
VoIP telephony, also known as voice over IP telephony, or simply IP telephony, is a digital type of telephone communication. The term VoIP 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 network (LAN) in a modified compressed form for subsequent playback.
The Session Initiation Protocol (SIP) is responsible for the stable operation of VoIP telephony. SIP is a protocol used to initiate, maintain, and terminate real-time voice, video, and messaging sessions. It’s basically what connects your VoIP system to other networks, including the public switched telephone network (PSTN).
VoIP technology appeared in 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 new opportunities for companies in the field of communications.
Lack of local tethering and access to voicemail, call forwarding, and other features have made VoIP technology an important telecommunications tool for businesses. It performs a number of tasks that are more difficult and expensive to solve through a conventional mobile network.
Here’s how it all works.
How the VoIP service works
The principle of operation of VoIP telephony is a sequential algorithm. During a voice 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 divide it into the following steps.
The subscriber dials the number.
VoIP telephony server accepts connection requests.
The system identifies the user and 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 (sometimes with codecs) to the VoIP telephony server.
The VoIP service 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 a VoIP phone differ from a traditional landline phone?
The difference between VoIP telephony and traditional connections primarily lies in the infrastructure that provides them. Unlike traditional telephone communication, which does not work without cables and telephones due to its analog nature, VoIP protocol for business is implemented through devices that have a stable broadband 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 these types of phone calls from virtually any device connected to the network.
VoIP technology has more potential and offers advanced functions. It allows users to perform a broad range of actions, including but not limited to the following.
Making automatic calls
Setting up call forwarding
Creating "white" and "black" lists of contacts
Receiving a large volume of calls at the same time
Together, these features make the VoIP protocol for business one of the most effective tools for building branched communications. Combined with the existing information processing algorithms, they help to transfer data from subscriber to subscriber in the best quality. With a stable internet connection and a fast device, the quality of VoIP communications can greatly surpass analog communications.
It’s safe to say, however, that the biggest advantage of VoIP telephony over analog communications from a consumer point of view is the pricing and cost. Communication through the World Wide Web has a minimal price when paying for calls, unlike a traditional phone system, for which telecom operators charge a fee. According to a 2023 report by Tech.co, the cost of setting up a VoIP system can be almost 70% lower than conventional communication; you save on running costs, too.
Also, for VoIP technology, it doesn't matter how far apart the interlocutors are; that is, international VoIP calls are also cost-efficient.
Features | VoIP Technology | Analogue (Landline) |
Cost of Service | Cheaper calls, more cost-effective | Additional telecom operator fees amount to higher cost |
Flexibility | More flexible and physically portable | Bound by device and wire, not very portable |
Setup & Maintenance Costs | Easy setup and low maintenance cost | High installation and maintenance costs |
Infrastructure | Uses internet connection | Uses physical phone lines |
Features | More features like instant messaging, SMS, and video conferencing calls | Limited to voice calls |
Call Quality | Generally high, but is also dependent on internet speed; jitter issues can happen | Not as great yet consistent call quality |
Hardware Requirements | Little physical infrastructure required | Elaborate and limiting hardware setup and requirements |
The pros and cons of VoIP systems for businesses
Let's go over some important pros and cons of using VoIP for business communications.
Advantages of VoIP
1. Cost-effectiveness
A VoIP phone service can cost way less than a traditional landline system. This is because of the low-cost structure VoIP services employ, along with the limited hardware requirements. You don’t have to buy and install extensive hardware and connection lines for the system to begin functioning. You also don’t have to pay for a separate device for each VoIP connection.
2. Mobility
You might be able to walk to your desk or the window while on call if your desk phone has a long enough wire, but portability is severely limited by traditional landline phones. With VoIP, there is significantly more portability and flexibility based on the device it’s being used on. If you are using an IP phone, laptop computer, or mobile device, for instance, you have full portability and the flexibility to communicate from wherever you want as long as you have an internet connection.
3. Security
VoIP services have proved to be more secure than traditional lines. VoIP systems employ encryption and extensive security protocols and features that add a layer of security that is missing in conventional analog communications.
4. Scalability
For businesses in particular, the scalability afforded by a VoIP phone system is a great advantage. VoIP plans for businesses can be scaled up or down based on the needs of your team and your clients. Conventional landline phones don’t afford that kind of scalability.
5. Phone number ID
VoIP phones will also allow multiple kinds of phone numbers to businesses. The main reason for this is that clients are likelier to respond well to calls that come to them from local numbers with identifiable area codes. A VoIP provider can offer local, toll-free, and international numbers to your business based on the type of plan you get.
6. Reliability
Most VoIP providers offer strong SLAs (service level agreements) that specify an expected service uptime. The provider owes the customer compensation if the customer’s service falls below the fixed percentage in that year.
7. Advanced features
VoIP services offer multiple advanced features that can cater to a varying set of needs for your business based on the plan you pick. Some of these services, unavailable in traditional phone line systems, include group video calls, conference calls, video call recordings, global connections and call analytics.
Disadvantages of VoIP
1. Dependence on internet connectivity
VoIP systems work through the internet instead of traditional phone lines, so for a VoIP service to function to its maximum potential, a stable internet connection is required. In case of connectivity issues or slow speed, the calls can be jittery and face latency issues.
2. Emergency calling
VoIP services can have limitations during emergency call routing. Emergency calls usually rely on automatically providing information about location to emergency services, but this can delay response time significantly in the case of a VoIP phone call.
3. Power outages
Because VoIP systems rely on the internet, and most routers and other networking equipment within homes and offices also rely on electricity, this can cause issues during power outages unless extensive electricity backup systems have been set up. Moreover, the devices used to access the VoIP service would need power as well.
When is it worth implementing VoIP technology?
In most cases, VoIP telephony is relevant for all kinds of businesses, regardless of their size. Companies of medium and large scales use VoIP technology by default because it saves a lot of money on streamlining communication with customers. Small businesses are now gradually adopting VoIP technology as well.
VoIP telephony is in demand among operators, contact centers, network companies, and 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 substantial call traffic.
For example, VoIP services are useful to healthcare institutions and organizations. It can be used in large government 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. Whether it's booking rooms, contacting staff, or confirming reservations, VoIP telephony provides special features like auto attendant, speed dial, and call recording, which improve the customer experience in many ways.
VoIP protocol can also be used within a company, connecting remote employees to an IP network or connecting branches of the same organization. Many firms now work remotely and, often, colleagues are not only in other cities but also on different continents. VoIP calling bridges that physical gap effortlessly.
In conclusion
Before investing in a VoIP 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 offers many useful and convenient features. For businesses, this is a great way to simplify communication with customers while simultaneously improving the quality of service and delivering a flawless communication experience.
However, 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 our direct connection to communication channels via 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. Our system is compatible with all operator networks worldwide. Decision Telecom supports over 100 text-to-speech languages.
Contact an expert or register on the site to start working with us.
