VoIP calls with Birch is easy

How Does VoIP Work?

VoIP converts your voice into a digital format, compresses it, and sends it over the internet. The VoIP service provider (like your internet service provider) sets up the call.

How VoIP works to connect telephone calls over the internet.

For phone calls, the conversation is exchanged using small data packets. The internet can send these data packets around the world in less than a second. For internet telephony, these packets travel between your phone and a VoIP provider.

Voice over Internet Protocol bypasses the telephone company entirely. Wherever you have a broadband internet connection like DSL, cable, or fiber, you can use VoIP. It’s a major upgrade from an analog phone system.

Here are some basic steps involved:

Your phone connects to your switch or router in your Local Area Network (LAN).
When you dial a telephone number, your IP phone tells your VoIP service provider to call the other party.
Your VoIP service establishes the call and exchanges data packets from your IP phone.
Your VoIP phone converts these digital signals into the sound you can hear.
More than two decades ago, you used to need expensive, proprietary equipment to use VoIP. Today, VoIP is built upon open standards such as Session Initiation Protocol (SIP). SIP provides complete interoperability between desk phones, conference phones, and VoIP apps.

What Is the Difference Between VoIP and Landline Phones?

VoIP technology enables high-quality voice calls over the Internet, whereas landline phones rely on a copper telephone network to make outbound calls and receive incoming calls.

When you deploy VoIP, it gets managed via the cloud, so there’s no need for on-site installation or management. When you need to add or change users, it’s a software change rather than the need to call an engineer.

Businesses prefer VoIP because of its better calling standard and wider range of features without the need for setting up an expensive on-premises private branch exchange (PBX).

Functionality	VoIP	Landlines
Phone calls (PSTN)	Yes	Yes
Nationwide long-distance	Included	Optional
User-to-user calls	Yes	PBX required
Caller ID	Yes	Yes
Call Waiting	Yes	Yes
Ease of setup	★★★★★	★★★
Requires internet	Yes, 100 Kbps per line	No
Wireless	Wi-Fi, DECT, and Bluetooth headsets are available	DECT and Bluetooth headsets are available
Reliability during internet/ power outages	Calls can be routed to another number or voicemail.	Calls drop or are routed to voicemail.
Technology	IP telephony (SIP, TLS, and SRTP)	Analog voice signals
Call quality	★★★★★	★★★★
Setup cost	$0	$110 per jack
Monthly cost	$20–35	$35
Advanced features
Auto attendant	Included	PBX required
Phone number privacy	Included	Varies
Phone number changes	Included	$27
Phone extensions & hunt groups	Included	PBX required
Conferencing	Included	Three-Way Calling
Call routing	Included	$9.95/mo
Call queuing	Add-on	Add-on
Remote work capable	Yes, softphone apps	Call forwarding
Call encryption	Yes (TLS & SRTP)	No
International dialing	MX: $0.16/min UK: $0.01/min JP: $0.05/min	MX: $1.97/min UK: $1.21/min JP: $1.62/min
Business voicemail	Included	$13.95/mo
Integrations (CRM, text messaging, surveys)	Yes	No

Consider switching from traditional phones to VoIP if:

Your country plans to discontinue landline phones
Your sound quality is poor
You need advanced features
Your on-site PBX contract is expiring
You’re moving to remote or hybrid work
You’re paying too much for external calls
You’re paying too much for long-distance international calls
How Much Does VoIP Cost in 2023? Find out in this guide.

What equipment do you need to set up VoIP?

For a small setup, you only need a subscription to your business VoIP provider and a device to make calls to get set up for the first time. This device could be a desk phone, a softphone on your laptop, or a VoIP app on your mobile phone.

Assuming you already have a broadband connection and a router, you don’t need any other VoIP equipment.

If you manage VoIP for your enterprise, you may opt to use a separate firewall or switch from your router. If you have analog phones or other devices you wish to retain, use an analog telephone adapter (ATA). These small adapters connect your VoIP solution to traditional telephone services and devices, such as old fax machines and alarm systems.

Advantages of VoIP

Benefits of a VoIP phone include easy installation, virtual phone numbers, simple integration, and more

Lower pricing – Reduces call costs with internal and internet calling by up to 50%; reduces on-site maintenance and repair costs, too.

High-quality sound – Internet connectivity enables HD call quality; management tools check for potential network issues.

Advanced features – Offers premium features like auto attendants, call recording, and call queues – without having businesses install expensive add-ons.

Cheap international calls – International long-distance rates are as low as $0.04 per minute to call Mexico or $0.01 to reach the United Kingdom.

Fast deployment – Only takes an internet connection and a softphone or handset to set up.

Remote-friendly – Use your phone service wherever you work. No technical setup is necessary if you work from home.

VoIP desk phones aren’t expensive; you can even get them free from your phone service provider. Plus, they often include a mobile app you can use on your desktop or mobile device to make calls instead of using a traditional handset.