Voice Over IP (VoIP)

What is Voice Over IP (VoIP)?

You have likely heard the term “VoIP” when talking about phone systems, but perhaps without really understanding what it means. VoIP stands for “Voice over Internet Protocol,” and as the name implies, it is a method of delivering phone calls over the internet.
Let’s break it down a little further. You have likely also heard the term “IP address” in conjunction with internet activities.

Just like the IP in VoIP, the IP in IP address stands for “internet protocol,” which is the way computers and other connected devices communicate over the internet. Any device that connects to the internet must have an IP address, and while that once meant only computers, today it can mean anything from refrigerators to printers and televisions to – you guessed it – telephones.

In the timeline of connected devices, telephones have actually been internet-connected for a long time, longer than your smart TVs and refrigerators. IP telephony has been around since the 1990s – you may have had a VoIP phone in your office or home long before you had a smartphone in your pocket.

Landlines and traditional cellular phones rely on the Public Switched Telephone Network (PSTN) (sometimes called POTS, or Plain Old Telephone Service) to send and receive calls. VoIP, on the other hand, uses your existing broadband internet connection. Back in the 1990s, when broadband internet was not nearly as common or accessible, VoIP was often simply used as a backup to a landline. However, today’s broadband internet landscape has changed.

A 2020 FCC report shows that 85% of Americans now have access to fixed terrestrial broadband service at 250/25 Mbps, with the number of rural Americans having access to such service tripling between 2016 and 2018. VoIP is now a common, and often preferred, alternative to landlines. But how does it work, you may ask? Doesn’t it require a lot of extra equipment and technical expertise? It did at one time, but not anymore.

How VoIP Works

VoIP converts data into a digital signal, transmitting it over the internet in digital data packets. In the past, additional expensive equipment was required to make this happen. However, VoIP systems have begun using standards like Session Initiation Protocol (SIP), a text-based connection management protocol that uses many elements of hypertext transfer protocol (HTTP) and simple mail transfer protocol (SMTP). This allows for interoperability between different devices and apps.

These standards have made VoIP functionality simple. A VoIP phone connects to your home or office local area network (LAN). Making or receiving a call initiates the exchange of data packets, which are then converted back into audible sound. It allows phone calls to take place from a VoIP telephone, a computer or a smartphone app.

Getting VOIP For Business

For businesses, VoIP can be a great investment and significant money saver. It’s also the perfect solution for keeping a team connected in today's work-from-home world even when they’re telecommuting from multiple remote locations.

For a VoIP installation at a business, you’ll probably want something a little more sophisticated than a single phone plugged into the network. Unified Communications, or UC, is a broad term that covers numerous workplace communication tools, such as phone calls, web conferencing, email and SMS messaging. When all these tools are combined into one UC system, workers at an organization, whether in one office or multiple offices, can communicate from anywhere and on various devices.

An IP PBX is a private network within a company – PBX stands for private branch exchange. A professional VoIP installation with a UC system means an IP PBX at the center of the system. The IP in the name means the phone calls are being delivered by internet protocol.

An IP PBX means that even smaller companies can have a commercial phone system with features like an auto-attendant to answer and route calls. Sometimes called a digital receptionist, the auto-attendant is the automated voice menu that allows you to select from a list of extensions or choose from a dial-by-name directory. It eliminates the need for a human receptionist and works even if no one is actually in the office.

VOIP Phone Systems

VoIP phone systems mean that, because the phone retains the same IP address, no matter where it is plugged in – the office network, at home, or even in a hotel room — it will receive calls. So an office with a VoIP system that sent all its employees to work from home back in March 2020 would be able to continue to operate with no disruption – at least as far as the phone system went — as long as the employee had a high-speed connection at home.

It’s worth noting here that “high speed” sounds faster than it is – we have gotten used to seeing commercials from ISPs touting blazing fast speeds and “gig internet” — but the FCC defines high-speed internet as having a minimum download speed of 25Mbps and minimum upload speed of 3Mbps. VoIP typically requires a minimum of 100 Kbps up and down, and an ideal speed of 3Mbps up and down. That’s really not that fast in today’s world – Netflix requires .5Mbps at a minimum and recommends 5Mbps for HD quality, and it’s certainly less than the 250/25 Mbps that the FCC reports most Americans have access to.

Having a VoIP installation in the office, then, means the appearance and functionality of a central office no matter where the employees are located. It is a much more convenient and much less expensive alternative to a traditional phone system.

Nationwide Communications Services offers complete VoIP installation and VoIP maintenance services, providing small and enterprise levels organizations with a professional UC system. Whether a large company with employees in numerous remote locations or small single office business, we have solutions to meet your needs. Nationwide Communications Services is your communications partner, helping you stay connected at all times.

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