How does VoIP work?
Voice over Internet Protocol, also referred to as Voice over IP, or simply VoIP, describes the interconnected system of hardware and software that utilizes the internet to communicate.
These virtual phone systems and message services use the internet’s infrastructure to send packets of
data between channels. Traditional phone systems
used closed circuits between copper wires.
The benefits of VoIP have catapulted the technology into our daily lives and virtual phones are making their way into businesses all over the world. In fact, you have probably, unknowingly used a VoIP service in the past 24 hours.
Facebook messenger, WhatsApp, Skype, Google Voice… sound familiar? These are all VoIP apps. Instead of asking: how does VoIP work? Ask why it works so well.
Here are a few facts that outline the benefits of VoIP and illustrate the success of the technology:
- Companies that switch to VoIP save between 50 and 75 percent. Small businesses save roughly 40 percent on local call costs with VoIP.
- In the United States, over 30 percent have seen the benefits of VoIP and are using virtual phone systems because they boost productively and cut costs.
- Traditional phone services are losing over 500,000 customers every month and VoIP services for small business are receiving more business from first time buyers and startups. The benefits of VoIP for startups include cutting initially costs by up to 90%.
- The VoIP market is project to grow at 10 percent every year until 2020