What is VoIP technology and What are its advantages

For organisations all around the world, VoIP technology has become the usual method of voice communication. This is because of the several advantages it offers over traditional phone networks, including reduced equipment costs, lower call rates, and less maintenance. As per Finances Online, you may save up to 90% on international calls and 30% on phone costs. Further, it is adaptive, scalable, and versatile!

First, let’s understand what is VoIP technology?

What is VoIP?

Voice over Internet Protocol (VoIP) is a well-established technology that allows anybody to make phone calls over the internet. VoIP (Voice over Internet Protocol) is a means of making and receiving phone calls via the internet. The majority of individuals regard VoIP to be a viable alternative to traditional landlines. Your Internet Protocol address is what you’ve heard of as an IP address. On the internet, IP addresses are used to communicate between computers and devices. VoIP technology isn’t exactly a novel concept. Since the late 1990s, telephony has depended on digital lines to carry phone calls. VoIP is a low-cost method of managing an infinite number of calls.

Advantages of VoIP Technology

Given that Nextiva is a VoIP service, it’s safe to assume we know a thing or two about VoIP. Here is the list of advantages of VoIP technology:

Cost Saving

One of the advantages of VoIP technology that almost every company would enjoy is the cost reductions. You can only establish a certain number of phone lines before the prices start to mount, especially if your company makes long-distance calls often. The problem of a single phone line having able to be used by just two callers is eliminated since communication data is converted into data packets and delivered via the IP network.

The IP network might be direct IP connectivity to your phone company or simply your current internet connection. Traditional phone lines charge by the minute, but your only expenditures are your ISP’s monthly fees with VoIP. Many carriers, for example, provide low-cost or even free calling within the United States.

Conferencing Made Simple

Conferencing is much simplified without the use of separate phone lines. Conferencing is possible with traditional phone systems, but you’ll have to pay for an additional service and host numerous callers each time you need to conference. These functionalities are generally native to a converged data network, and the cost is incorporated into the ever low price of the VoIP connection you’re currently paying for.

Accessible from Everywhere in the World

More companies are realising the advantages of letting their employees work from home in return for smaller office spaces, lower utility expenses, and so on. They’re also learning about the advantages of VoIP, which allow their staff to successfully telecommute.

Employees may use your office’s voice, fax, and data services remotely via your intranet using VoIP. VoIP technology has evolved to the point where users may join from their homes or from other countries. Furthermore, when your employee transfers to a new home office, their number is transferred with them.

Improved Bandwidth Utilization

One of the lesser-known advantages of VoIP is that it allows you to make better use of your available bandwidth. Because almost half of phone calls are silent, VoIP maintains to fill in the gaps with data from other bandwidth users, allowing you to make greater use of your resources. Furthermore, VoIP enables compression and the removal of voice redundancy, resulting in even greater savings.

Extensive Add-Ons

Many organisations are unaware of all of the advantages and capabilities that come with a VoIP service. VoIP systems enable you to connect a wide range of devices in order to maximise your company’s efficiency. Caller ID, virtual numbers, phone numbers in the contacts list, voicemail, and other VoIP technology capabilities are common, but they may all be used in more complex ways to improve operational efficiency.

Voicemail messages and messages, for example, maybe sent to numerous colleagues with a single click, and voicemail-to-text transcriptions can be sent right to your inbox and examined while you’re on the move. Many capabilities are offered in various operator packages, and custom VoIP services may be developed to meet your company’s specific needs thanks to the service’s flexibility.

How VoIP Technology Works?

It’s no surprise that the cost of traditional phone systems has been rising for quite some time, making it a major worry for businesses. This is why, in the United States, businesses of all sizes are adopting the “less is more” philosophy with VoIP solutions and recognising it as the most effective corporate communication tool. The ability to make and receive phone calls is provided by VoIP for enterprises. A virtual phone number is also available to them.

These numbers aren’t tied to a certain set, so you may use them with any device, including laptops, smartphones, landlines, and PCs. In addition, there is no need to connect a PBX and any other equipment. You’re done after you’ve connected to your IP phone. IP gadgets will create a secure and high-quality connection by using your high-speed Internet.


Businesses profit from VoIP technology in a variety of ways. On the one hand, a small firm can use VoIP to replace its old communication infrastructure and save money. Big businesses, on the other hand, may exploit this to boost efficiency and sales. However, VoIP may become the most common business technology, with a large number of enterprises already using it. So, with our list of trends and benefits, you’ll have a better understanding of how to make the most of this system to increase your business’s profits.