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VoIP or Voice over Internet Protocol is a technology that lets you place phone calls over an internet connection. This technique has become a definitive choice for phone service for consumers and businesses, since it offers more capabilities than analog phones, for an amount that is less than half of the cost.

Internet Protocol address, abbreviated as IP address is used by computers and devices to communicate with each other on the internet. So, if you have an internet connection, you can call anyone, without needing any local phone service. Enterprise VoIP solutions work on any computer and provide much more than just establishing calls, including routing of outgoing and incoming calls through existing telephone networks.

How does VoIP work?

VoIP system facilitates calls between other phones over to another telephone company, and also provides other useful functions like call forwarding, voicemail, and call recording. Here is how VoIP works:

  • Your phone first connects to the switch or router in your Local Area Network (LAN).
  • Once you dial a telephone number, your Internet Protocol (IP) tells your VoIP service provider in order to call the other party.
  • Then, the service provider will establish the call and exchange data packets from your IP phone.
  • And finally, the VoIP phone will convert these digital signals back into the sound that you can hear through the phone.

Benefits of VoIP

  • High-quality sound: the quality of the sound is very high, without any muffles in the audio.
  • Call anyone worldwide: International call rates are very low. So, you can call anyone from any part of the world.
  • Lower cost: Businesses and consumers have started using this as it provides substantial savings and lowered phone bills.
  • Advanced features: Advanced features like auto attendants, call queues, and call recording help in running the companies. Many inbound call center services in India also offer business phone service plans.

Drawbacks of VoIP

  • Emergency services limitations: If you need to call any emergency services from your VoIP, then you need to tell the operator your exact location.
  • Needs high-speed internet connection: High-speed internet connections are required because VoIP does not work well on dial-up or satellite-based Internet connections.


Interactive voice messaging using VoIP offers the best value, cost savings, and some of the most useful features. This technology can save up to 65% of your business phone bill.



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