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Understanding ‘VoIP’

Article by Diogo Correa
January 24, 2019

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Understanding VoIP - Voice Over Internet Protocol

VoIP known as Voice Over Internet Protocol is the new go-to business phone solution as it’s multi-functionality of not only making business voice calls but also the advantage of video conferences, and chat using just your internet connection. Although there are dinosaur minded companies still using analogue phones, a growing number of business now rely on VoIP for general operations.

The Voice Over Internet Protocol (VoIP) solution is a service based solutions that has been changing the fixed-voice market with it’s low entry pricing and functions offered by providers, creating strong competition for traditional public switched telephone networks (PSTN) fixed-voice services.

VoIP simply works by converting analogue voice calls into little packets of data. VoIP basically means you’re using the internet to make phone calls, and your voice is transformed into little packets of data that are the deciphered on the other end. Similar to using a multitude of other things on the internet such as emails, instant messages…etc.

VoIP services represent a new direction for fixed communications and a potential substitute for PSTN fixed-voice services. Compared with PSTN fixed-voice, VoIP is generally cheaper, has a more efficient call process and offers additional functions. However, VoIP calls can be subject to more variations in voice quality compared with PSTN calls and this could inhibit take-up of the service. While consumer and SME research suggests that take-up is currently relatively limited, there is a strong level of interest in adopting VoIP in the future.

VoIP providers use various business models and pricing structures. Service providers can bundle VoIP with other services—18 per cent of internet service providers (ISPs) bundle their services with VoIP. Some VoIP providers are ISP-independent and offer their services to anyone with a VoIP-capable internet connection. Others use a hybrid approach, where ISPs offer VoIP to their own broadband customers as well as other consumers. VoIP services are cheaper than traditional fixed-voice PSTN pricing—VoIP calls may be free if made between customers on the same VoIP network. While cheaper pricing is attractive for customers, it also places pressure on revenues. Consequently, pure-play VoIP providers may have more difficulty sustaining a business case.

 I hope this article has been helpful in bringing light into what VoIP is and what it provides it’s adopters. If you’re thinking of getting a VoIP solution contact us and we can discuss options with great prices, service and support. Tech Patrol is a direct TPG, GoDaddy and Yealink partner – We have the best VoIP package in the MSP space this is why we are bringing further light to this highly adopted solution. View the video below for a quick run through of the Yealink range!

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