What is a VoIP? How does VoIP work?

Due to the digital advancement that we are facing today, countless opportunities could aid in our business, one of which is VoIP or Voice over Internet Protocol. Telecommunications has changed throughout the years and VoIP has made its way to infiltrate businesses and transition them into the new digital age. VoIP isn’t relatively new however there are still a lot of questions being asked on how this works and its benefits. Let’s dive right into it.

VoIP or Voice over Internet Protocol is a mean of telecommunication that allows users to communicate via the internet. The conventional telephone has now been delivered on a whole new level where you place a voice call through the internet, aside from voice calls it can also transmit data and video content through IP. There are services available that help you set up your own VoIP without any hassle and one of which is Hottelecom.

How does VoIP work?

Since VoIP converts audio data to digital data, it works this way: place a call using a phone (an analog telephone with a VoIP adapter, IP phone, or cellphone) or a computer then the audio signal will be converted to a digital data and the data will be sent over to the receiver via a network connection.

There are softwares or hardwares to make this possible:

VoIP Codecs

As mentioned above, VoIP converts audio data to digital data and with that said an encoder-decoder is needed, thus the purpose of the VoIP Codecs. The process of encoding-decoding is achieved by codecs, codecs ensure that the data is compressed, which helps in transmitting the data faster resulting in a better quality in a better quality of the call. Codecs are required in VoIP because unlike traditional phone conversations that use analog data, VoIP uses digital signals. Codecs are then used to encode the analog voice data into digital signals and transmit them into the internet. When the digital signal reaches the receiver it will be then decoded back to its analog form so that the message will be properly conveyed.

VoIP phones

A VoIP phone is the main endpoint equipment for placing a call in the VoIP network. They take different forms, it may be an ATA (Analog Telephone Adapter), IP Phones, and Softphones.

Analog Telephone Adapter (ATA)

An ATA is an adapter that is used to connect your analog phone to the internet and process VoIP calls. The ATA will encode the outgoing analog data from your phone into digital data that will be transmitted to the internet and vice versa. Having an ATA helps save businesses in terms of cost because they get to keep their existing desktop and phones and will be able to switch to VoIP without any delays.

IP Phones

IP phones look exactly like your regular phone however they are made for VoIP purposes. The only difference a VoIP phone and a regular phone is their cables while the regular phone cable connects the usual RJ-11 phone cable into a wall socket, IP phones uses the RJ-45 cable which connects to the Ethernet network adapters. Thus there is no need to purchase an ATA since having an IP phone automatically communicates with the digital language. IP phone features include caller ID display, call transfer, call hold, conference calls, call blocking, and more. VoIP phones rely on the internet and electricity to work.


Softphones are softwares that need to be installed onto your computer or a mobile device. Its function and features are similar to a regular phone however the difference is that it uses the internet to call, receive, and manage calls. Aside from voice calls, softphones can also support video calls. For a softphone VoIP setup, it requires a computer, a software, a sound card, a microphone, and a speaker. For mobile VoIP, you only need a cell phone and an app to start calling.

Advantages of using a VoIP

As businesses are scaling up so should your availability and equipment. Transitioning your business into a more diversified and automated system by using VoIP for all your telecommunication concerns. Here are a few advantages in using a VoIP for your business.

  • Sky is the limit
    • With VoIP you can talk to anyone anywhere. The sky is the limit, may it be local phone calls or international as long as you have a stable internet connection.
  • No worries for lost connection or chappy phone calls
    • VoIP uses the digital signal and digital signals are faster than analog signals and have a lower chance of downtime.
  • Multiple features
    • For a package deal on VoIP services, they offer bundles that will help you lower your cost. These may include phone calls, call recording, call forwarding, call routing, videoconferencing, conference calls, remote extensions, minutes for international calls, voicemail to text or email, HD voice quality, remote capabilities, and multiparty conference chats. Packages may vary per company.
  • Cost-effective
    • There are VoIP companies that will allow you to set up and enjoy VoIP and relevant features at a low cost. As compared to a regular phone, VoIP calls are way cheaper.
  • Connect multiple offices
    • VoIP allows businesses to combine their phone systems from their other multiple offices into a single system. You can also add or remove lines under a VoIP system with fewer costs as compared to setting up the regular phone.
  • Increase Productivity
    • For call centers using VoIP, having a phone call auto generated information would be a great help in increasing their productivity and help them work faster and reduce mistakes.
  • Future proof your business
    • As time progresses, the traditional phone will no longer exist, and by safeguarding your business’s future start using VoIP. VoIP will soon take over the telecommunication industry and by being one of the few you can reduce the learning curve and continue your business.

VoIP, as you can see, holds a lot of advantages for businesses and since VoIP is a growing technology that is being frequently adopted by every business whether from small businesses to large corporations who are looking into cutting costs to increasing productivity with their call centers and aiming to future-proof their communication systems as well.

VoIP contains a lot of potentials to further integrate with a wider range of applications and can be adapted to your current system and could also cater to all your business needs specifically.

As the future entails, businesses large and small are recognizing VoIP as ​the communication system of the future.


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