How a VoIP Telephone System Works

VoIP (Voice over Internet Protocol or VoIP Telephone System) in computer generated letters.

Over the years, there have been some amazing advances in technology. Less than two decades ago, we were walking around town with huge “brick” mobile phones in our pockets. At the time, they were only good for a few SMS messages and the odd game of snake while waiting for the train. Now, they boast GPS, talk to us, and can tell us the time in every single country in the world within seconds. Elsewhere in the world of communication, Voice-over Internet Protocol (VoIP) has also been attracting a great deal of attention. For this reason, let’s explore how a VoIP telephone system works!

What Is a VoIP Telephone System?

First and foremost, let’s address the biggest question of them all because we appreciate that not everybody will be aware of this service. Essentially, a VoIP telephone system allows you (a residential property or business) to receive ordinary analog audio signals. These signals are the same we hear when talking on the phone. However, it transforms them into digital data which means they can be transmitted over the internet just as the name suggests. Of course, this is a fairly simple explanation for what is considered a complex process but this is the root of the process; anything after this could be considered ‘bells and whistles’ or just an added extra.


If you’ve done some research on this topic already, you may have heard the term “codecs” being used. This is actually the backbone of VoIP. In today’s digital world, the importance of everything being digital is only getting stronger and codecs allow the transformation we have seen to occur not only with high-quality but with consistency over time.

For example, let’s say you were to phone an ordinary telephone number. The signal will be converted into a digital signal and this allows for improved audio (and video with conference calls). Typically, the switches will be located nearby which means the signal is always strong and both parties involved in the conversation can benefit as a result.

Why Choose a VoIP Telephone System?

Now we’ve addressed the “what?” the next most common question is “why?”. Why would anybody feel inclined to do this? What’s wrong with the analog signal we have relied upon for many decades?

Firstly, it allows you to bypass the pesky phone companies because you no longer need to receive calls from an analog signal. Considering there are some superb VoIP companies who offer their services for a respectable price (or even for FREE), it seems crazy that we all just pay phone companies and their extortionate rates just because it’s the “thing to do”.

For a business, money saved can go towards marketing, staff motivation, and many other areas of the company instead of being wasted. Elsewhere, there is also a huge point to make about convenience because you can actually log into your VoIP telephone from anywhere in the world. As long as you have a connection to the internet, you’ll receive a dial tone without having to worry about data plans, mobile phone charges, and whatever other headaches normally come with this process. Whether you need to get in contact with a client or colleague while on a business trip, this will be easier than ever before.

With a VoIP converter, similar to a USB drive in appearance, you can plug it into your computer on-the-go and transform it into your personal phone device. What’s more, you can even flick between this and a conventional phone so the flexibility is hugely advantageous.

Finally, we should note that a VoIP telephone system is about more than just a phone call every now and then. Instead, you can also use it for video conferencing calls. Ultimately, this means you can go on a business trip, video conference the guys and girls back at the office, and have a full meeting without having to fly everybody out on the trip. If you’re going away and will miss an important meeting back at home, it takes seconds to get a video conference going and you won’t have to miss a thing.

Investing in VoIP

We should mention that there are three different types of VoIP you can buy so getting some advice from an expert in the industry might be a good idea.

  • ATA (Analog Telephone Adaptor) – With this option, this is what we’ve been discussing all the way through as it connects to a standard phone.
  • Computer-to-Computer – Perhaps the easiest method, all you need to get started is a microphone and speakers and you can connect one computer to another.
  • IP Phones – Finally, these are specially-designed phones that look like a normal phone but work with an Ethernet connector.

If you feel as though you could benefit from VoIP this year, be sure to get in contact us at VoiceNEXT, we can help you with all of your VoIP needs!

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