VoIP (Voice over Internet Protocol) is a digital telecommunications technology that lets users make/receive voice calls over the Internet instead of the standard landline telephone network (the PSTN.)

VoIP works on devices with Internet access, meaning analog phones, (desk phones or hard phones connected to the VoIP system) smartphones, tablets, desktop computers, and laptops can all be used for VoIP calling.

In addition to greater mobility, VoIP offers more advanced features, a higher level of customization, and significant cost savings compared to traditional phone lines. VoIP is also referred to as IP telephony, virtual telephony, or Voice over IP calling.

VoIP services work by digitally compressing the outbound caller’s voice audio (speech) into digital voice data packets.

These outbound data packets travel to the call destination via the Internet and are decompressed in order once they reach the inbound caller’s device.

Once the voice data packets are reassembled, they transform back into the words and phrases of a conversation.

When choosing a VoIP provider, use the key factors below to evaluate VoIP providers quality:

• Network Reliability and Guaranteed Uptime (99.9% uptime and above is standard)
• Pricing Structure (Bundled Monthly Plans vs Pay-As-You-Go)
• Scalability (Can scale plans and add-ons up or down according to current/future needs)
• Security and Privacy (SOC II Type 2, HIPAA, GDPR Compliance, E2EE, 2FA, etc.)
• Available Features (Call Routing, Call Forwarding, Call Recording, IVR, ACD, etc.)
• Available Integrations (Works with existing third-party business software)

VoIP services can save 49-69% on monthly telephone costs by:

• Eliminating the need to purchase and maintain expensive hardware
• Cutting costs of hiring in-house IT teams and additional agents
• Using existing communication and IT equipment (desktop computers, smartphones, etc.)
• Reducing high costs of long-distance phone calls (unlimited VoIP US/Canada calling)
• Dramatically lowering setup installation costs
• Eliminating need to purchase and set up additional phone line
• Hundreds of free calling features that you typically pay for with landlines
• Free paperless faxing

In addition to the above-mentioned cost savings, VoIP offers numerous benefits to SMBs and Enterprise-level companies alike.

Top Business VoIP benefits include:

• Increased first call resolution rates
• Advanced customer self-service options
• More team mobility and flexibility (ideal for remote/blended teams)
• Improved team productivity and a more balanced workload
• Streamlined business processes thanks to AI and automation
• Increased customer satisfaction and decreased employee turnover
• Detailed insight into agent, department, and overall call center activity via analytics
• Higher levels of customization and personalization