How Does VoIP Work and How Does It Benefit Businesses

One may already be familiar with the term VoIP (short for Voice over IP), but how does it really work and how it can benefit the user?

This is the revolutionary technology that allowed users a new way to communicate. VoIP is basically Internet Protocol (IP) telephony conversations encoded as data packets that users can exchange usually at no charge, with low monthly subscription rates or as pay-as-you-go (PAYG).

How Does VoIP Work and How Does It Benefit Businesses

How VoIP Works

Thanks to the use of telephone VoIP software, hardware IP Phones or softphone computer applications, or an ATA (analog telephone adapter), a user can use his or her Internet connection to make a phone call. Calls can be placed computer-to computer, but also through IP phones (phones that connect to the Internet directly), smartphones (for calling on-the-go) or even regular phones and fax machine (thanks to ATAs).

VoIP communication services are provided thanks to a number of protocols that allow the transmission of data or video data packets on the Internet. Protocols determine a series of digital rules that allow transmitters and receivers of signals to coordinate and exchange messages and packets.

The RTP (Real-time Transport Protocol) often sets the standards for the transmission of audio and video data packets over IP. It is used to provide ways to prevent transmission problems and out-of-sequence packages en-route.

Signaling protocols are also important for VoIP communication. Common protocols are the H.323, a widely used one especially for international VoIP calls and video conferencing systems.

SIP (Session Initiation Protocol) is another widely used way to transport voice or video over an IP network.

VoIP for Businesses

What it seemed to be a great application for home users has quickly become a staple for many businesses. VoIP has allowed many companies, in fact, to cut their communication costs and have access to a series of advanced features for both their offices and their remote locations and mobile workers.

VoIP services have soon evolved into unified communications services for the electronic transmission of voice, fax, data and more between distant parties.

Why a Hosted VoIP PBX

Instead of needing to sustain a legacy telephony system on-site, the option to use a VoIP service provider may be beneficial. Many SMBs have opted for hosted private branch exchange (PBX) systems that deliver all essential communications services (from voice mail to call-forwarding, -waiting and-transfer and much more) in addition to providing fundamental applications via a VoIP platform.  Visit FonAngle for more information.

A hosted VoIP PBX solution is completely scalable, allowing one to expand their phone lines at multiple locations, add new extensions, add or remove features when changes are needed/required.

Most hosted PBX companies will customize a VoIP solution according to a company’s needs and operations, so that they can provide the highest quality of service to their clients while minimizing expenses.


Compared to legacy phone systems, a hosted PBX system gives significant benefits to businesses as it offers the latest IP-PBX features and enterprise-ready services in the cloud. It presents a cost-saving alternative to purchasing new PBX systems, lines and equipment, hiring additional manpower and having IT managers worrying about periodic maintenance. It basically relieves businesses from the burden of owning and setting up a complicated hardware infrastructure, managing and upgrading it.

What’s more, a Hosted PBX service offers employees the ability to work from anywhere, whether that be working from home, other offices, from their mobile phone or abroad.

Having the entire telephone system operated and maintained by the provider gives clients the option to replace their existing phone lines with an Internet-based VoIP PBX service for home and business use. It is likely to see many more businesses in the near future replacing their traditional phone system entirely.