What is VoIP and how does it work?

What is VoIP?

VoIP, Voice IP or Voice over Internet Protocol, is a technology that allows you to use your internet connection to make phone calls, instead of the now obsolete analog telephone line that was traditionally used.

As it is a service that works through the internet connection, it is essential to select a good Internet Service Provider (ISP) with high quality standards. Having a fiber optic high-speed connection can be decisive in getting the most out of VoIP.

How does VoIP work?

In essence, VoIP technology converts voice signals into digital data packets that are transmitted in real time through your network, allowing for better sound quality between sender and receiver compared to the traditional analog telephone lines of the Public Switched Telephone Network (PSTN).

It takes advantage of the fact that each device connected to the network has a unique IP address, which is ideal for correctly directing the data packets and ensuring that the message reaches the corresponding recipient.

The 7 fundamental phases of VoIP operation

1IP device connectionDevices compatible with the Session Initiation Protocol (SIP), such as an IP phone or a mobile application, connect via the router to your Local Area Network (LAN)
2Dialing a telephone numberA number is dialed from any SIP device (fixed or mobile) and a request is sent to the VoIP service provider in order to establish a call.
3Call establishmentOnce the call is requested, the service provider confirms the truthfulness and availability of the recipient's number.
4Negotiation of call parametersDuring the call establishment, the parameters that guarantee effective and quality communication are negotiated: the audio compressor codec, the delay, the transport protocol or the bandwidth assigned to the call.
5Conversion of voice to digital dataThe voice is converted into digital signals using a codec that acts as an encoder (compressor) of the audio emitted by the sender and a decoder (decompressor) of the audio received by the receiver.
6Data transmission via internetThe SIP device and the recipient's device exchange small data packets over the internet. These packets represent fragments of digitized audio that will ultimately be converted into voice.
7Reconversion of data into voiceThe digital data packets are reassembled into understandable audio signals that faithfully replicate and reproduce the sender's voice.

What is the difference between VoIP and PSTN communication?

You may not yet know how to distinguish the advantages offered by VoIP technology compared to traditional telephone cable networks. If that is your case, below, we show a table that summarizes the key differences between VoIP and the Public Switched Telephone Network (PSTN):

	VoIP	PSTN
Technology	Uses the Internet connection to digitally transmit call voice data.	Relies on copper cables that transmit voice as an electrical current and on the switching of physical telephone circuits . An exclusive channel is established for that call for its duration.
Infrastructure	Requires an Internet connection , preferably a high-speed internet	Uses the conventional telephone network with telephone exchanges and physical lines. Telephone lines require an extensive physical structure that is often saturated.
Sound Quality	Thanks to elements such as signal digitization, compression algorithms, and prioritization of voice traffic, greater clarity and stability are achieved in each call. It works in wide frequency ranges (50 Hz to 7 kHz).	Since its transmission is electrical through wired circuits, it is susceptible to interference. Voice distortion increases with distance. It reaches narrow frequency ranges (300 Hz to 3.4 kHz) compared to VoIP, which affects sound clarity.
Cost	Generally more economical , the price per minute for VoIP calls is much lower, especially for international calls. In addition, the initial investment is minimal as it does not require physical hardware.	Calls are charged per minute of use. It can be expensive, especially for long-distance calls. The maintenance of extensive cable networks, exchanges, and switches is more costly.
Flexibility	Allows for multiple simultaneous services (calls, video, messaging). Increase your mobility by making and receiving calls from anywhere with an internet connection.	Limited to one call per line (dedicated circuit). You depend on whether there is access to the physical PSTN infrastructure.
Functionalities	Offers call transfer, call waiting, voicemails, conference calls, and more.	Basically provides voice calls.
Scalability	Scalable and adaptable to user needs. Allows for easy addition of new users to the system. It adapts seamlessly to business growth.	Less flexible and more difficult to scale. New lines or expanding the network require additional technical cabling work.
Addresses	Uses IP addresses for routing.	Uses phone numbers to switch calls.

What is VoIP for in companies?

VoIP is presented as the best communication solution for small and large companies. Whether your company needs to improve the efficiency of internal communications, professionalize customer service or simply reduce telecommunications costs, VoIP is a great idea that improves the efficiency and productivity of your business.

At Digitel, our team of expert advisors can help you learn about the virtues of voip in your business. We help your team, departments and/or headquarters to communicate better with each other and with your customers.

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Advantages and disadvantages of VoIP telephony

Below, we break down the main benefits and drawbacks of VoIP to improve your company's communications.

Advantages of VoIP	Disadvantages of VoIP
✔Call routing. Improves call management by guiding the caller to the desired recipient. The incoming call is routed automatically or by dialing the employee's or department's extension. ✔No physical hardware requirements. Eliminates the need for costly physical infrastructure, reducing operating expenses. ✔Scalability: Adapts to the company's growth, allowing for easy addition or removal of extensions as needed. The storage capacity of companies has also been exponentially expanded as it is cloud-based. ✔Remote work. Allows working from anywhere, facilitating employee mobility and flexibility. ✔Sound quality. Better voice clarity in every call. ✔Advanced call management. It is possible to configure advanced incoming call handling options such as setting up an answering machine, call transfer, caller ID, call recording, call forwarding to specific numbers, configuring a virtual PBX, etc. ✔Reduced call cost. Using the internet to transmit voice data lowers call costs, especially internationally. ✔Compatibility with traditional phones. With VoIP, you can continue to communicate with the traditional PSTN telephone network as there are connection ports and adapters between both networks. ✔Instant messaging. Use compatible applications to send and receive text messages and audios in multiple conversations at once. Collaborate in real time with other colleagues and associates. ✔File sharing. You can share images, video, and documents through the same messaging application as they provide cloud storage spaces. ✔Videoconferences. Connect to online meetings with multiple users and make presentations by sharing your screen wherever you are. ✔Constant updates. VoIP providers usually offer continuous updates in terms of call quality, security improvement, new integrations, and compatibility with new technologies. ✔Integration with other business solutions. In order to improve the efficiency and interconnectivity of all your company's data, your VoIP solutions can be integrated with your CRM for customer management, with your ERP for business resource planning, with collaboration tools like Wildix, with analytical tools, among others. ✔Artificial Intelligence (AI): AI is increasingly integrated with our IP voice solutions. For example, AI applied to customer service via VoIP is improving the user experience with virtual assistants and automated data analysis.	X Internet dependency. A fast and stable internet connection is required. A good bandwidth will allow your IP telephony system to flow without interruptions. X Limitations for emergency calls. Sometimes emergency calls pose challenges for VoIP because VoIP numbers are portable and not linked to any specific physical location. However, every day more IP voice providers offer solutions to this problem. X Energy dependency. As long as a VoIP device needs electrical power to function, this network will be disabled. Computers, IP phones, routers, and modems need electricity to work, unlike traditional telephone lines that can get power from conventional copper lines. X Security risks. Since information is transmitted over the internet, VoIP can lead to a security breach and be attacked by computer viruses and malware.

Advantages of VoIP

Disadvantages of VoIP

✔Call routing. Improves call management by guiding the caller to the desired recipient. The incoming call is routed automatically or by dialing the employee's or department's extension.

✔No physical hardware requirements. Eliminates the need for costly physical infrastructure, reducing operating expenses.

✔Scalability: Adapts to the company's growth, allowing for easy addition or removal of extensions as needed. The storage capacity of companies has also been exponentially expanded as it is cloud-based.

✔Remote work. Allows working from anywhere, facilitating employee mobility and flexibility.

✔Sound quality. Better voice clarity in every call.

✔Advanced call management. It is possible to configure advanced incoming call handling options such as setting up an answering machine, call transfer, caller ID, call recording, call forwarding to specific numbers, configuring a virtual PBX, etc.

✔Reduced call cost. Using the internet to transmit voice data lowers call costs, especially internationally.

✔Compatibility with traditional phones. With VoIP, you can continue to communicate with the traditional PSTN telephone network as there are connection ports and adapters between both networks.

✔Instant messaging. Use compatible applications to send and receive text messages and audios in multiple conversations at once. Collaborate in real time with other colleagues and associates.

✔File sharing. You can share images, video, and documents through the same messaging application as they provide cloud storage spaces.

✔Videoconferences. Connect to online meetings with multiple users and make presentations by sharing your screen wherever you are.

✔Constant updates. VoIP providers usually offer continuous updates in terms of call quality, security improvement, new integrations, and compatibility with new technologies.

✔Integration with other business solutions. In order to improve the efficiency and interconnectivity of all your company's data, your VoIP solutions can be integrated with your CRM for customer management, with your ERP for business resource planning, with collaboration tools like Wildix, with analytical tools, among others.

✔Artificial Intelligence (AI): AI is increasingly integrated with our IP voice solutions. For example, AI applied to customer service via VoIP is improving the user experience with virtual assistants and automated data analysis.

X Internet dependency. A fast and stable internet connection is required. A good bandwidth will allow your IP telephony system to flow without interruptions.

X Limitations for emergency calls. Sometimes emergency calls pose challenges for VoIP because VoIP numbers are portable and not linked to any specific physical location. However, every day more IP voice providers offer solutions to this problem.

X Energy dependency. As long as a VoIP device needs electrical power to function, this network will be disabled. Computers, IP phones, routers, and modems need electricity to work, unlike traditional telephone lines that can get power from conventional copper lines.

X Security risks. Since information is transmitted over the internet, VoIP can lead to a security breach and be attacked by computer viruses and malware.

As you can see, working within VoIP offers a host of potential benefits for your company that you cannot miss. At Digitel, our team of expert advisors can advise you on all the benefits that Voice IP can bring to improve your company's communications.

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But, do you know what components we need to enjoy and get the most out of IP voice in a business environment?

VoIP Equipment

Although you already know how VoIP behaves and what advantages it has in a business environment, you may wonder how this technology is applied in daily life and what elements compose it.

It turns out that there are various compatible, and at the same time necessary, equipment for the maximum use of IP networks. Below, we present the fundamental components:

Stable and high-speed Internet connection.

A stable internet is essential for the proper functioning of voice over IP

As we have mentioned several times, having a good broadband connection to guarantee the quality and reliability of VoIP calls.

Virtual PBX or IP-PBX.

Image of a virtual PBX or virtual switchboard as the operations center that manages VoIP

You cannot get the most out of VoIP without the element that acts as the brain of the communication operations. This cloud-based VoIP telephone system manages incoming and outgoing calls within your company, offering functionalities such as call routing and transfer, voicemails, videoconferences, etc.

VoIP Phones:

VoIP phones are specialized devices that connect directly to your internet network and use voice over IP protocols to transmit calls. It has been and continues to be a basic element on any company's desktop, although they are increasingly being replaced by VoIP applications that offer unified communications such as Wildix.

Analog Telephone Adapters (ATA)

As their name indicates, they allow you to connect conventional analog telephones to your network, converting analog signals into digital data packets that can be transmitted over the VoIP network.

VoIP Softphones

Applications that operate purely through software that are installed on devices with internet access such as PCs, smartphones or tablets, allowing you to make and receive calls through VoIP

Versatility of softphones that allows them to be used on multiple devices through software

In more advanced cases, they also allow you to make video calls for meetings with one or multiple users, send instant messages with your colleagues or transfer files to improve collaboration and resource exchange.

Headphones with microphone

Wearing the typical headphones is always a good idea to improve audio quality, especially in noisy environments or for call centers.

Router with QoS (Quality of Service)

A QoS internet connection prioritizes and helps avoid congestion on the VoIP network

Also called network switches, they are devices that allow efficient data traffic between all the equipment in a LAN. They help minimize latency, optimize bandwidth for each device and help avoid congestion problems in the VoIP network. They prioritize voice traffic over other types of data and ensure good call quality.

Digitel Empresas offers the best VoIP telephony services in Spain

At Digitel we work with the best VoIP distributors on the market and we know which solution is the most appropriate for your business model. We are aware of the rapid growth that the world is experiencing in terms of remote work, digital collaboration between teams and fluid communication with customers. VoIP technology plays an indispensable role in these processes, and it turns out that at Digitel we are experts.

Let our experts advise you and get a personalized quote for your business's communication needs completely free.

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