A small guide to what is VOIP and its benefits

Investing in the right technology is crucial for the growth of today’s small and medium-sized businesses. Operating lean and focusing on choosing the right technology to invest in has become more important than ever before. In such crucial times of businesses facing cutthroat competition, one such technology that has been quickly gaining popularity is VoIP. However, before adopting this technology, it is crucial to understand what is VoIP and how it can be beneficial for your business.

So what is VOIP really?


A Voice over Internet Protocol, more commonly referred to as a VOIP, can be best explained as a phone technology that allows businesses to make and receive phone calls using the internet instead of the traditional landline. While trying to answer questions like what is VOIP, it is important to know that when you use this technology, you are no longer bound to the traditional phone sets. Instead, one can make and receive calls from your VOIP-compatible telephone set or your desktop computers, laptops, tablets and even smartphones.


Moreover, since you are using the internet for calling, VOIP makes the communication process more cost-effective, offering unlimited minutes irrespective of whether you are calling someone locally or internationally.


Cost saving isn’t the only benefit a business can derive from using Voice over Internet Protocol. In fact, businesses get to enjoy other great VOIP benefits as well. Some of these include:

  • Call waiting
  • Multiple Phone numbers
  • Call routing
  • Auto-response mode (for times when you are unavailable)


This is why most businesses (big and small) are switching from traditional land lines to VoIP systems.

How does a VOIP work?

Now that you have understood what is a VoIP let’s look into how it works. To switch from a traditional landline to a VoIP, you must start with investing in an internet connection with a good bandwidth or a broadband internet connection.

  • If you are using your existing telephone to make a call using VoIP, you must first connect to an analog telephone adapter or an ATA to receive an IP address. Once you get the IP address, simply plug your phone into the ATA adapter and start making and receiving calls as usual.
  • If you decide to use a computer or a laptop to make calls using VoIP, you will have to get hold of the necessary app and ensure that your computer is equipped with a working sound card, headset and microphone. Once you obtain the app, you can easily make calls using Voice over Internet Protocol (VoIP)
  • To use your mobile phone to make VoIP calls, you need access to the right app, a strong Wi-Fi connection, or a high-speed 4G mobile data plan.

How does one benefit from it?

So now that you have grasped the idea of what is VOIP let’s look at some of the key benefits that businesses can derive from it.


Leads to a reduction in your overall costs

One of the most lucrative benefits why many businesses are switching to using VoIP is because of its cost-effectiveness. Since Voice over Internet Protocol allows you to call and receive domestic and international calls via the internet, it automatically reduces your overall costs. Additionally, today many VoIP providers even offer incentives like unlimited calls, which are totally free of charge, making it even more lucrative for small businesses to adopt the technology.


The option to choose your on-hold music

As a flourishing business, many a time, phone calls require to be put on hold. Whether you are transferring a call to another department, cross-checking something or even waiting for other participants to join in on a conference call – when this happens, VoIP allows you to play music in the background as opposed to awkward silence. Additionally, you can even customize the music you choose to play. Simply upload your chosen tunes and program them to be used as your on-hold music.


Promotes growth of businesses

A significant part of understanding what is VoIP is learning how it can promote the growth of businesses by increasing scalability. Unlike traditional phone systems, where you spend chunks of money on dedicated lines as your business grows or add more people to your staff, VoIP promotes businesses to grow and flourish. All you have to do is make a few changes to your account dashboard and add more teammates.


Ease of Access

One of the many reasons businesses are now choosing Voice over Internet Protocol is because it is completely portable. Thus using VoIP, you are no longer bound to sit by your desk or be at your office at all times. You can take both domestic and international calls almost anywhere.


Recording conversations

Businesses that use VoIP systems can also automatically program the system to record inbound and outbound calls. These recorded calls can be used for several different purposes. Some of these include resolving disputes, serving as a training tool, quality assurance and compliance etc.


The birth of Interactive Voice Response (IVR)


Using VoIP helps in curbing costs. Gone are the days when one had to hire customer service representatives to uphold your business’s image. With VoIP you can use facilities like interactive voice response (IVR) to pre-record greetings and answer business calls in a timely manner.

Frequently Asked Questions (FAQs)


Can I use my current business phone number after shifting to VoIP?

Yes, while making the transition, you can request number porting. This allows you to continue using your existing business phone number.


What happens if there is a disruption with my internet connection?


Many VoIP service providers also offer backup facilities to support any glitches in your broadband connectivity or if there is a power failure. However, it is best to confirm this from your VoIP provider beforehand and prepare in advance for any unfortunate events.

In Conclusion

So now that you know what is VoIP and how it works, why not try and reap its benefits by implementing it in your business. After all! The rise of digital and mobile technology has proven to quite beneficial especially for small and medium-sized businesses. 

Valerie Young

Valerie Young

Valerie Young writes for Find Compare and is a writer and editor in London.

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