How Does VoIP Work?

The phone company has been around for more than a century. During most of that time, it took physical connections between callers in order to complete a call. For businesses, that meant copper wires, a PBX (Private Branch Exchange), and expensive monthly fees.

VoIP (Voice over Internet Protocol) has been around since the mid-90s and has become the norm for businesses trying to increase efficiency and save money.

Using internet connections to make and receive calls, VoIP decreases the dependence on local phone companies, expensive hardware, and monthly fees for leased lines. With the explosion of broadband and high-speed internet, nearly every company will benefit from moving to VoIP for communications.

How Does VoIP Work?

A traditional phone system will send your call through phone lines and connect it to the PSTN (Public Switched Telephone Network). In the old days, an operator would have to make a physical connection by patching your call through to the right party.

All of that is done automatically now and your call is then routed to the number you dial. The lines the phone company uses are leased by you and you pay a monthly access fee. In addition, you will pay additional charges for long-distance calls or international calling.

VoIP operates by converting your voice into data packets that are small enough to transmit over the internet. These packers are assigned routing information and sent on to their receiver. The packets are sent individually, then reassembled into their original state when they make it to their destination. This process compresses the voice signal when you talk and decompresses it for the receiver.

With VoIP, you bypass much of the phone company’s proprietary systems. When you make a call, it is not sent through phone company lines. Instead, your in-house IP-based PBX or cloud-based hosted PBX routes it through your internet connection directly into the PSTN and onto the person you are calling. This eliminates the need to pay for leased lines from your phone company or an access fee. It also eliminates long-distance charges and most international calling fees.

VoIP can be installed on handsets, computer, laptops, or mobile devices via an app and connected into your network. This means mobile workers, remote workers, and in-home workers can all work on your communication system regardless of where they work.

Realizing The Advantages Of VoIP

One of the biggest advantages of VoIP is the cost savings over traditional telephone systems. By skipping the phone company’s leased lines, VoIP provides for substantial savings. A lower cost of total ownership often allows for savings of 50% or more over traditional phone services. There are no long-distance fees and reduced or eliminated international calling fees.

Using a cloud-based, hosted VoIP system such as 8x8, there is a little up-front cost to install. You do not need PBX hardware or expensive software. Since everything is switched in the cloud, there is no need for dedicated IT staff or VoIP experts in your organization.

You have access to advanced calling features without any additional cost. Systems are managed and upgraded remotely by your VOIP provider, which means you can eliminate maintenance expenses and have peace of mind that your system will operate efficiently. If there is an issue, there are experts on hand to fix things quickly.

With a flat-rate fee structure, you will get a single bill from one provider. The cost will be significantly lower than traditional phone company fees, especially for businesses that are currently paying for long-distance calling or per-minute fees. Call quality concerns from the 1990s have been mostly eliminated.

Unlike traditional phone networks that require additional lines, upgrades, and visits from the phone company, changes are easy. The administration is simple through an online admin portal that allows you to quickly add or changes extensions with the click of your mouse. That makes your system scalable as your organization grows.

A Reliable And Compliant Cloud VoIP Solution

When it comes to VoIP, 8x8 provides a reliable and compliant cloud solution at a demanding level rarely seen by other cloud providers. Don't take your chances with a subpar cloud-based telecom system. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.

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