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How does VoIP Work?

by Matt Peterson on Friday, August 24th, 2012.

Voice over Internet Protocol (VoIP) is taking the business phone systems by storm. Not only does business VoIP help save companies thousands of dollars annually, but also it helps boost business productivity.

One of the advantages for VoIP businesses are that users can make calls anywhere a broadband Internet connection is available. Most businesses make long distance phone calls. VoIP helps streamline this process by routing calls though a circuit switch that enters an Internet Protocol (IP) gateway. This also helps reduce the company’s bandwidth. Once the call is received, the gateway then decompresses and reassembles the call, routing it through a local circuit switch.

Currently, all circuit-switched networks are being replaced by packet-switching technology, which helps make VoIP business services even more efficient and useful. Utilizing IP telephony is economical, practical and utilizes existing infrastructure requirements to help companies save money. While more and more businesses are rapidly installing VoIP systems, they report that cost savings are substantial and employees have far greater flexibility when using VoIP services.

VoIP allows employees to make calls anywhere a broadband Internet connection is available. This means that traveling employees or those who work from home can easily take their phones with them, having constant access anywhere an Internet connection is accessible. An additional alternative is a soft phone. This is software that loads the VoIP telecommunications service directly onto a laptop or desktop computer. This allows employees to make telephone calls via their computer, provided they have a headset and microphone.

Many VoIP companies offer excellent rates and service. Jive offers multi-tiered plans with unlimited telephone calls, low international rates and astounding businesses savings. VoIP companies also offer call waiting, caller ID, repeat dial, call transfer, three-way calling, return call features, call forwarding, direct voicemail, busy signal notifications, not-in-service messages or hotline services.

Most VoIP services allow voicemail and messages to be checked online or automatically attach to email messages and sent directly to employees. This helps save employees time, especially when traveling or sitting in front of a computer during the day. They can simply listen to voicemails on their computer.

VoIP services also provide the ability to set up auto attendants, allowing incoming calls to be routed to appropriate personnel and/or departments, which ultimately frees up the receptionist to focus on other important administrative tasks.