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VoIP (voice over IP) is the transmission of voice and multimedia content over Internet Protocol (IP) networks. VoIP historically referred to using IP to connect private branch exchanges (PBXs), but the term is now used interchangeably with IP telephony.How Voice over IP (VoIP) works is a mystery to some small business owners and employees. But if you understand how it works, you can more easily use the technology to your company's advantage.

How VoIP Works

➤With VoIP, analog voice calls are converted into packets of data. The packets travel like any other type of data, such as e-mail, over the public Internet and/or any private Internet Protocol (IP) network.

➤Using a VoIP service, you can call landline or cell phones. You can also call computer-to-computer, with both parties speaking into a computer microphone and listening through computer speakers or headsets.

➤When evaluating, it's worth noting that you can make or receive calls using landline telephones. All you need is an analog telephone adapter connected to your network. Also, to ensure the best voice quality and security, consider using your VoIP or other communications system on a private IP network.

VoIP services convert your voice into a digital signal that travels over the Internet. If you are calling a regular phone number, the signal is converted to a regular telephone signal before it reaches the destination. VoIP can allow you to make a call directly from a computer, a special VoIP phone, or a traditional phone connected to a special adapter. In addition, wireless "hot spots" in locations such as airports, parks, and cafes allow you to connect to the Internet and may enable you to use VoIP service wirelessly.

VoIP uses codecs to encapsulate audio into data packets, transmit the packets across an IP network and unencapsulate the packets back into audio at the other end of the connection. By eliminating the use of circuit-switched networks for voice, VoIP reduces network infrastructure costs, enables providers to deliver voice services over their broadbandand private networks and allows enterprises to operate a single voice and data network. VoIP also piggy-backs on the resiliency of IP-based networks by enabling fast failoveraround outages and redundant communications between endpoints and networks.

How VoIP Works for Your Business

How VoIP works for your business is simple: By adding voice to a data network, you’ll reduce costs, improve productivity, and enhance collaboration.
➤You'll save money by having one network to manage instead of two. You can easily add, move, or change phone extensions and locations, which saves money and gives you more flexibility.

➤Your workforce can use your communications system from home or on the road. Also, wireless IP phones connect users to your communications system and data resources, such as customer information, while they're in the warehouse, on the sales floor, or anywhere they can access your data network wirelessly.
➤Depending upon your service, you might be limited only to other subscribers to the service, or you may be able to call anyone who has a telephone number - including local, long distance, mobile, and international numbers. If you are calling someone who has a regular analog phone, that person does not need any special equipment to talk to you. Some VoIP services may allow you to speak with more than one person at a time.
➤Some VoIP services offer features and services that are not available with a traditional phone, or are available but only for an additional fee. You may also be able to avoid paying for both a broadband connection and a traditional telephone line.
➤Unified communications solutions for small businesses go beyond basic VoIP capabilities in enhancing collaboration. With a unified communications solution, workers can easily collaborate through voice, video chat, Web conference, and instant messaging. Employees can collaborate using each technology individually or all of them simultaneously, and from a single, easy-to-use interface.

VoIP protocols and standards



VoIP endpoints typically use International Telecommunication Union (ITU) standard codecs, such as G.711, which is the standard for transmitting uncompressed packets, or G.729, which is the standard for compressed packets. Many equipment vendors also use their own proprietary codecs. Voice quality may suffer when compression is used, but compression reduces bandwidth requirements. VoIP typically supports non-voice communications via the ITU T.38 protocol for sending faxes over a VoIP or IP network in real time.

Once voice is encapsulated onto IP, it is typically transmitted with the real-time transport protocol (RTP) or through its encrypted variant, secure real-time transport protocol. The Session Initiation Protocol (SIP) is most often used for signaling that is necessary to create, maintain and end calls. Within enterprise or private networks, quality of service (QoS) is typically used to prioritize voice traffic over non-latency-sensitive applications to ensure acceptable voice quality.

Additional components of a typical VoIP system include the following: an IP-PBX to manage user phone numbers; devices; features and clients; gateways to connect networks and provide failover or local survivability in the event of a network outage; and session border controllers to provide security, call-policy management and network connections. A VoIP system can also include location-tracking databases for E911 (enhanced 911) call routing, and management platforms to collect call-performance statistics for reactive and proactive voice-quality management.

What Kind of Equipment Do I Need?

A broadband (high speed Internet) connection is required. This can be through a cable modem, or high speed services such as DSL or a local area network. A computer, adaptor, or specialized phone is required. Some VoIP services only work over your computer or a special VoIP phone, while other services allow you to use a traditional phone connected to a VoIP adapter. If you use your computer, you will need some software and an inexpensive microphone. Special VoIP phones plug directly into your broadband connection and operate largely like a traditional telephone. If you use a telephone with a VoIP adapter, you'll be able to dial just as you always have, and the service provider may also provide a dial tone.